Wage transparency laws gain traction globally

Both California and New York have joined five other American states with state-wide pay transparency laws. PHOTO: NYTIMES

Wage transparency has entered the lexicon of lawmakers worldwide in recent years.

In December 2022, pay secrecy clauses in employment contracts, which forbid employees from disclosing their salaries to others, were banned in Australia.

Meanwhile, the state of California in the United States has mandated that employers who employ 15 or more workers disclose the wage range of all advertised jobs since Jan 1.

This includes roles that will, or may, be filled in California, including jobs done remotely from within the state.

Employers must also tell employees the salary range for their position when requested.

From September, the state of New York will require employers of four or more workers to state a wage, or wage range, in advertisements for a job, promotion or transfer opportunity.

Both California and New York join five other American states with state-wide pay transparency laws, with Colorado becoming the first one in 2021.

The European Union is the latest to join the fray, adopting new rules on pay transparency on April 24.

Under EU rules, employers must inform job seekers about the starting salary or pay range of positions they advertise, either on the job listing or ahead of the interview.

Employers are not allowed to ask candidates about their pay history, either.

Employees will also be entitled to ask their employers for information about average pay levels of their peers, broken down by sex, as well as criteria used to determine pay and career progression.

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