H.R.2007 - Salary Transparency Act (119th Congress)
Summary
H.R. 2007, the Salary Transparency Act, aims to amend the Fair Labor Standards Act to require employers to disclose wage ranges for employment opportunities to both employees and applicants. This bill mandates that employers provide this information in public postings, internal postings, and directly to applicants before discussing compensation. It also prohibits retaliation against employees or applicants who exercise their rights under this section.
Expected Effects
The bill's passage would likely lead to increased wage transparency across various sectors. This could empower employees and job seekers with better information for salary negotiations. It may also reduce pay disparities based on gender or race.
Potential Benefits
- Increased Pay Equity: Greater transparency can help identify and address pay gaps based on gender, race, or other discriminatory factors.
- Improved Salary Negotiation: Applicants and employees will be better equipped to negotiate fair compensation.
- Enhanced Employee Morale: Openness about pay can foster trust and improve employee satisfaction.
- Reduced Litigation: Clear wage ranges may decrease the likelihood of pay-related disputes and lawsuits.
- Attraction and Retention of Talent: Companies that are transparent about pay may attract and retain more qualified candidates.
Potential Disadvantages
- Increased Administrative Burden: Employers may face additional costs and complexities in determining and disclosing wage ranges.
- Potential for Litigation: The broad language could lead to lawsuits over the interpretation of 'wage range' and 'good faith'.
- Reduced Flexibility: Some employers may feel constrained in their ability to offer competitive salaries based on individual qualifications.
- Competitive Disadvantage: Companies may be hesitant to disclose salary information to competitors.
- Possible Inflationary Pressure: Increased transparency could lead to upward pressure on wages as employees seek to match or exceed disclosed ranges.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to promote fairness and equity in the workplace. While the Constitution does not explicitly address wage transparency, Congress has the power to regulate interstate commerce, which includes labor practices. The bill does not appear to infringe upon any specific constitutional rights or freedoms.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).