Salary Transparency Act
The Salary Transparency Act would amend the Fair Labor Standards Act (FLSA) to require employers to openly disclose wage information for any employment opportunity. The law would require wage or wage range disclosures in public or internal job postings, and, when no posting is made, disclosure to applicants before discussing compensation and any time upon request. It also requires current employees to receive the wage range for their position upon hire and at least annually thereafter, and it protects workers from retaliation for exercising these rights. The bill defines “wage range” broadly to include not just base pay but other forms of compensation, and it outlines civil penalties and potential damages for violations. The act applies to both private and public employers that provide employment opportunities.
Key Points
- 1New requirement: an employer must disclose the wage range or compensation for an employment opportunity in public or internal postings; if there is no posting, the wage range must be provided to applicants before discussing compensation and upon request.
- 2Ongoing disclosure: employers must disclose to employees the wage range for their position at hire and at least annually thereafter, and upon any employee request.
- 3Non-retaliation: employers cannot interview, hire, promote, or otherwise retaliate against someone for exercising wage-disclosure rights under this section.
- 4Definition of wage range: includes the anticipated range of wages, salaries, and other compensation, and may reference pay scales, previously determined ranges, current incumbents’ ranges, or budgeted amounts.
- 5Penalties and enforcement: violations can result in civil penalties (starting at $5,000 for a first violation, increasing by $1,000 for each subsequent violation, up to $10,000) and damages to affected employees or applicants (statutory damages or actual damages, from $1,000 to $10,000 or more, plus attorney’s fees and injunctive relief). Private rights of action are allowed in federal or state courts.