Jump to content

Compensation transparency

From Wikipedia, the free encyclopedia
This is an old revision of this page, as edited by Paisley.mederios (talk | contribs) at 04:55, 4 May 2023 (Added California laws from ADP source). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Wage transparency, salary compensation, and compensation transparency generally, involves disclosure of employee compensation amounts, either among other employees in an organization, to owners, to government regulators, or to the public.

Some jurisdictions have pay transparency laws intended to prevent discrimination based on demographics like gender or race. These laws require job listings to give a salary range for the position. To eliminate unintentional discrimination and treat employees more ethically, some organizations have adopted radical transparency, disclosing all employees' compensation internally and either equalizing pay for similar positions or justifying differences.

Some jurisdictions mandate disclosure of executive compensation to shareholders, in an attempt to reduce excessive compensation.

In the United States, the National Labor Relations Act protects the right of employees to discuss compensation without retaliation from their employer.[1]

Laws Regarding Compensation Transparency

The following laws are word for word from it's source in order to maintain accuracy and integrity of the law.

California:

"Upon request, all employers must:

  • Provide an applicant with the pay scale for the position they applied for (even before the initial interview).
  • Provide an employee with the pay scale for their current position.

An employer with 15 or more employees must include the pay scale for a position in any job posting. If the employer engages a third party to announce, post or publish a job posting, the employer must provide the pay scale to the third party. The third party is required to include the pay scale in the job posting." [2]

See also

References

  1. ^ Your Right to Discuss Wages
  2. ^ "Pay Transparency Resources | ADP". www.adp.com. Retrieved 2023-05-04.