Earlier this year, on National Equal Pay Day, President Biden reminded the country that “women working full-time and year-round are paid an average of 84 cents for every dollar paid to men. In more than 90 percent of occupations, women earn less than men—and these disparities are even greater for women of color and women with disabilities.” 

Wage disparities don’t just negatively impact women. Black and Hispanic men tend to earn less than their White and Asian counterparts. Indeed, across all protected traits and intersections, wage disparities insidiously begin somewhere and seem to interminably widen over time.   

The persistence of these disparities is due to a number of factors, including conscious and unconscious biases, occupational segregation, imposter syndrome, and the historical undervaluation of work typically performed by women and/or minority groups. Frankly, anyone can fall victim to unfair compensation practices. 

How does it begin?

In many jurisdictions, it is still lawful for workplaces to ask applicants directly what they are currently being paid. Even if the interviewing company has much more to offer, it will naturally tailor its compensation package to the current circumstances of the applicant. If the applicant currently has a low salary, the interviewing company need only offer just a touch more to win the applicant over. If the applicant accepts the role, she may be earning considerably less than her new peers who are performing the same work, just because others negotiated better, had more information, or had a better salary at their previous role. Workplaces can similarly ask applicants what their target salary range is and use that intel against the applicant. 

In both examples, the interviewing workplace gets to ask all the questions and garner all the power in the negotiation. Applicants are typically afforded no such privilege in exchange. Prospective salaries are simply shrouded in total mystery.

Pay transparency laws aim to address these systemic issues by equipping workers with the information they need to advocate for appropriate, equitable compensation. When pay structures are opaque, employees lack key information necessary to negotiate fair salaries or even to identify potential discrimination. By lifting the veil on compensation, legislators aim to create a more equitable labor market.

The Nation’s Burgeoning Pay Transparency Movement

Pay transparency laws generally require employers to disclose salary ranges, pay scales, or other compensation details to employees and/or job applicants. 

So far, nine states and DC have pay transparency laws of some kind. Four more states will have similar laws in effect in 2025. 

California’s pay transparency law mandates employers with 15 or more employees to include pay scales in job postings. California further provides a rebuttable presumption in favor of the worker should her employer fail to maintain records as required. 

New York City’s equivalent requires employers to post minimum and maximum wage ranges to job applicants. Colorado’s law goes further by requiring employers to include not only salary ranges but also details about benefits for all job postings—whether internal or public. 

Beyond states with existing laws, several other states and cities are considering similar legislation and local ordinances. As more jurisdictions join the movement, unfair pay practices will improve. 

Challenges

Some employers attempt to evade these laws by providing overly broad pay ranges in their job postings or excluding relevant information to avoid scrutiny. To counteract this, lawmakers and advocates have called for stronger penalties and more robust enforcement mechanisms, ensuring that the spirit of these laws is upheld.

To maximize the impact of pay transparency laws, legislators and advocates emphasize the need for complementary measures. These include enforcing anti-discrimination laws, providing robust training on bias reduction for employers, and ensuring accountability by enforcing penalties. 

Conclusion

As more states and cities adopt pay transparency measures, the cumulative effect may drive a broader paradigm shift—normalizing clarity in compensation and engendering equity and fairness in the labor market. Pay transparency laws empower workers, promote accountability for workplaces, and challenge long-standing inequities. If you believe that you are being deprived of equal pay for equal work, contact one of our Texas employment lawyers today.