Salary Transparency Act Mandates Wage Range Disclosure in Job Postings and for Current Employees

This proposed legislation, the Salary Transparency Act, aims to amend the Fair Labor Standards Act of 1938 (FLSA), the bedrock law governing wages and working hours. If enacted, it would make it illegal for employers not to include a wage or salary range in all public and internal job postings. The core idea is simple: bring pay information out into the open before you even apply or start negotiating.

Show Me the Money: What the Bill Requires

Under this act, employers face several new transparency requirements. First, that salary range needs to be in the job ad itself. If there's no public posting, employers must disclose the range to an applicant before discussing compensation, or simply when the applicant asks for it. It doesn't stop with applicants; current employees would also have the right to know the pay range for their position upon hiring, annually thereafter, and anytime they request it (Sec. 2). What counts as a 'wage range'? The bill defines it as the compensation spectrum the employer 'anticipates in good faith,' based on things like existing pay scales, what similar roles currently pay, or the budgeted amount for the position. So, if you're eyeing a promotion or applying for a new gig, you should theoretically get a clear picture of the potential pay.

Playing by the Rules: Protections and Penalties

The act doesn't just mandate disclosure; it also builds in protections. Section 2 explicitly forbids employers from screening out, refusing to hire, or otherwise retaliating against applicants or current employees who exercise these rights – like asking for the pay range. Trying to keep pay secret could get expensive for businesses. The bill outlines civil penalties starting at $5,000 for a first violation, climbing by $1,000 for subsequent violations up to a $10,000 cap. Beyond fines, employers could be liable directly to affected employees or applicants for statutory damages between $1,000 and $10,000 (or actual damages, if greater), plus attorney's fees. Individuals would have the right to sue in Federal or State court to enforce these provisions.

Leveling the Playing Field? How This Changes Things

For anyone navigating the job market or their current career path, this could be a significant shift. Having salary ranges upfront means less guesswork and potentially stronger footing when negotiating pay. Knowing the range for your own role, or roles you aspire to, provides valuable context for career planning and discussions about raises or promotions. While the effectiveness hinges on employers providing realistic 'good faith' ranges rather than excessively broad ones, the requirement itself aims to chip away at the information imbalance that often exists between employers and employees. This transparency could particularly impact efforts to close gender and racial pay gaps by making compensation practices more visible and potentially more equitable across the board.