Understand Pay Transparency and Your Rights as a Job Seeker

Episode 462 | Host: Emilie Aries | Guest: Louise Myrland

What do Colorado’s pioneering pay transparency laws mean for your job search?

Today is Black Women’s Equal Pay Day, which recognizes the day of the year when the average black woman in America has finally earned the same annual salary that the average white man took home last year. It paints an alarming picture.

Throughout the country, various initiatives are being developed to help shrink this and other pay gaps, and the efforts are working—albeit slowly on the national level. I’m a proud Coloradan for a lot of reasons, but our trailblazing Equal Pay for Equal Work Act is way up there on my list. In recognition of this important day and the inspiring legislative efforts led by Colorado in recent years, I’m so pleased to share my conversation with Louise Myrland, the VP of Programs for the Women’s Foundation of Colorado

Louise leads the organization’s research, public policy, grantmaking, and education and engagement efforts, which together support a shift toward economic security for the 2.8 million women living in Colorado. Louise is the perfect spokesperson for this topic and has so many insights to share.

What is the Equal Pay for Equal Work Act?

The statewide legislation—the first of its kind passed in the U.S.—went into effect in 2021. This robust law demands and protects pay transparency and prohibits employers from paying people differently for doing the same work on the basis of identity, such as age, race, or gender.

The pay transparency component of this law has expanded across much of the country. Louise explains that while salary ranges appeared on minimal job postings years ago, today, one-quarter of workers in the nation can utilize this intel to make more strategic, informed decisions about the future of their careers.

What rights does this law grant workers?

The best-known component of the law is the requirement that companies share a clear salary range and benefits on every job posting open to Colorado applicants. In addition, the employer must indicate the deadline for applying, which goes a long way to helping job seekers prioritize the application process.

But the law goes further than this. It provides additional transparency to existing employees, who must be notified whenever their company has a vacant position that needs to be filled. They, like external job seekers, must be made aware of the salary range and benefits so that they have an equal opportunity to pursue new roles within their organizations.

Another hugely impactful layer of this act is the prohibition against asking interviewees to disclose their previous salaries. In the past, this common interview technique meant job seekers—particularly women and BIPOC people—could fall into a self-perpetuating trap of consistent low-ball offers. They would share their previous wage and, rather than the new company offering a salary contingent on market rate and their existing budget, the new hire would simply be offered an amount comparable to their previous pay, perpetuating the trend of underpaying women and marginalized workers. This cycle can follow a person from job to job, leaving them in a perpetual state of under compensation.

I was delighted to discover from Lousie that even workers seeking remote jobs with employers outside of Colorado are covered by these laws. If a job is open to residents for any state with these laws, the posting and interview process must abide by these rules!

Who is responsible for making sure employers follow the rules?

I get a certain amount of joy from being a pay transparency vigilante and reporting Colorado businesses that aren’t disclosing salary ranges on their job postings. These complaints (which anyone can file here) go to the CDLE—Colorado Department of Labor and Employment—and Louise applauds their dedication not only to implementing and enforcing these burgeoning laws but also to educating companies, many of whom want to be in compliance.

It makes sense for organizations to be as onboard as job seekers since the data strongly support the benefits of the Equal Pay for Equal Work Act for everyone involved. In my interview with Zoë Cullen, Are Pay Transparency Laws Working?, we discussed many employer benefits, including decreased “time to hire.”. When workers apply only for positions that match their expected pay, countless hours and efforts, on the part of both interviewer and interviewee, are no longer wasted. 

Other statistics are just as promising. A report released by the Women’s Foundation of Colorado in 2023 showed that since the Act went into effect in 2021, women in Colorado are earning an average of almost $3,000 more each year. That this is occurring while men’s salaries are holding steady (or increasing with inflation) tells us these policies are doing what they set out to do: foster pay equity, not raise women’s wages to the detriment of men.

I’m a data nerd, so we’ll look at a few more numbers before we go. The report Louise helped deliver indicates that this progress also applies to Washington and California, where similar laws are in place. All three states exceed the national average pace of closing the gender wage gap, which has closed by only 2 cents over the past three years: WA and CA have managed to speed that closure up to close the gap by 5 and 3 cents, respectively, while Colorado gets true bragging rights at closing the gender wage gap by 7 cents during this same time period!

In this episode, Louise shares some touching stories of women positively affected by the Equal Pay for Equal Work Act. I would love for you to share your own stories of changes you’ve experienced from these or similar laws; you can email me at emilie@bossedup.org. Let’s get the word out to keep our country’s pay transparency and equal pay initiatives coming.

Related Links from today’s episode:

Learn more about The Women’s Foundation of Colorado and access many helpful resources

Explore Colorado’s Equal Pay for Equal Work Act

The Women’s Foundation of Colorado Equal Pay for Equal Work 2023 report

Learn more about Colorado’s Department of Labor and Employment 

Press release for Equal Pay Day News

Download the Bossed Up Negotiation Guide for job seekers

Listen to episode 444, Are Pay Transparency Laws Working?

HIRED: my Job Search Accelerator

Find forms for reporting employers on equal pay rights and more here

Bossed Up Courage Community

Bossed Up LinkedIn Group

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