Archer Labor and Employment Law partner David Rapuano was recently quoted in the New Jersey Law Journal article, “What Happens When Salaries Stop Being Secret? We’re About to Find Out as Wage Transparency Laws Spread.” In the article, author Charles Toutant writes about the growing number of jurisdictions adopting laws that require employers to disclose information about their employees’ wage ranges. David Rapuano acknowledges how expansive in scope some of the new laws are.
Rapuano is quoted saying, “it makes the process for employers extremely difficult to know what laws they have to apply where, and if you have to apply simultaneously the laws of all 50 states.” He adds that the New York laws apply to businesses as small as four employees, and such small operations don’t have the funds to hire lawyers for advice on compliance. “It becomes incredibly burdensome and incredibly easy to run afoul of them despite every good intention,” he said.
Rapuano finds merit in the new laws, but also wonders if they will “create as many problems as they may solve.” He goes on to say, “the question is, is the cost worth the benefit? And I don’t know the answer to that. I think it’s going to force more companies to take a closer, more active look and engage themselves with pay equity more. And it will also give people more of a chance to say ‘I don’t think my pay is fair,’ and engage on that issue. Overall, I think it will help, but I’m not sure if the burden won’t offset the gain.”
To view the printable PDF, click here.