The Potential Consequences of Pay Transparency Laws

In 2019, when Colorado passed the nation’s first laws requiring that job postings share salary information. The world of work changed forever. 

“Pay transparency laws are changing the information balance, shifting from a spectrum where the employer held all the information to one where the employee has more information, more light,” says Helena Almeida, Vice President, Managing Counsel in the Human Capital Managing Group at ADP (No. 14 on DiversityInc’s 2022 Top 50 Companies for Diversity list).

Proponents say that pay transparency laws can close the gender and racial pay gap, attract workers and boost employee engagement and productivity. While there are benefits to pay transparency laws, there are potential consequences companies need to consider.

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