The US push for pay transparency

The US push for pay transparency Getty More US states and cities are forcing companies to disclose wage data, to improve equity. Getty California is home to huge companies - which mean changes there could ripple out beyond the state ‘A key tool to close wage gaps’ In many countries, including the US, pay opacity is a core cultural tenet of the labour market, which has traditionally benefitted employers. Indeed, because a culture of salary secrecy can keep companies’ wage bills low, and because transparency laws can expose organisations to lawsuits and fines, many business leaders have historically advocated for pay remaining private. “Over the last few decades, there's been mounting evidence that pay transparency can be a key tool in closing gender and racial pay gaps, making this an increasingly appealing option for legislators,” she says. “ a step in the right direction, and may well go some way towards resolving long-standing issues of pay equality and equity among workers,” she says, “ just one piece of the puzzle – on its own, it can't guarantee a good workplace for employees or a thriving business for employers.” Getty Pay transparency isn't a complete solution to wage gaps - but evidence shows it can help narrow them ‘Genie out of the bottle’ For now, even if pay transparency is an imperfect solution to workplace wage inequalities, experts are optimistic that California’s move could encourage others to follow suit, simply because of the number of huge companies – like Facebook parent Meta, Google parent Alphabet and The Walt Disney Company – domiciled in the state.