States Put New Spin on Pay Gap Laws With Promotion Transparency

Rules will require employees to receive notice on job opportunities.

Photographer: Stefan Wermuth/Bloomberg
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As a growing share of US companies are forced to tell job applicants and employees upfront how much they’ll pay for work, lawmakers are beginning to ask them to be equally transparent about opportunities to get a promotion.

Illinois legislators included so-called opportunity transparency when enacting this year's pay equity lawBloomberg Terminal, which takes effect in 2025, and Colorado's legislature beefed up requirements for next year to insist employers be more forthcoming on information about promotions. New Jersey has a similar provision in pending legislation.