Maryland’s new wage range transparency law went into effect Oct. 1, requiring employers to include a wage range in all job postings.
A growing number of companies have voluntarily added wages to postings, and, increasingly, jurisdictions require a pay range to be included. Making it the law guarantees an easier process for job searchers Maryland — who no longer need to apply for positions that may ultimately not meet their needs.
It will also mean some challenges for employers, whose existing employees now know what the pay range is for their similar job.
“You’re going to have to understand that there could be a morale issue with your employees when they know see what their neighbors may be paid. So it is a matter of speaking to them in a manner that says ‘This is all new. Let’s have a conversation,’” said Darla McClure, principal at Rockville, Maryland-based law firm Stein Sperling.
“Employers are going to have to do some adjustments with their pay scales, understanding they could lose some good people if they don’t do some pay adjustments,” she said.
When an existing employer decides they are underpaid, based on new job postings for similar jobs with wage ranges listed, McClure said there is a right way to have that conversation. And, she recommends being prepared to justify your concerns.
“They also can say ‘Hey, I’m a little under the pay scale here and maybe we need to have a conversation,’” she said. “But, you’re also going to talk about your qualifications and why you believe your pay may be unfair. So it is going to open those doors to those conversations, which I think will ultimately be a good thing.”
Surveys have shown younger workers are much more likely to discuss their compensation with coworkers, and to expect that transparency from their employer, or potential employer. Wage transparency may be an adjustment for older workers.
“I think its because the older generation grew up where the handbook said your salary is confidential and it could be grounds for termination if you tell somebody,” McClure said. “I think the newer generation of workers feel the more information, the better — where everything is transparent. They want to make sure they are getting paid fairly.”
Virginia’s proposed wage range transparency law was vetoed last spring. The District has wage posting requirements similar to those now in Maryland.