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Should Indiana join other states in requiring pay transparency in job postings?
As it stands, current Indiana law does little to support Hoosiers during the hiring process. In many cases, applicants are left in the dark regarding a position’s salary until later interviews. This is not only frustrating for applicants who might consider a lower-than-expected salary to be a deal breaker, it results in wasted time for employers interviewing applicants who might not settle for less than a specific amount.
Yet despite these clear concerns, Indiana employers are under no obligation to disclose a position’s wage range in a job posting. Indiana must join the growing number of states and municipalities in implementing salary-range transparency laws.
It’s far past time that our Legislature recognizes the importance of this issue and commits to improving hiring practices across our state. This legislative session, I authored House Bill 1046, which would have prohibited employers from relying on an applicant’s wage history to determine a position’s salary in the hiring process and required employers to list the salary range in a job posting.
When Hoosier workers set out to apply for a job and improve their quality of life, pay and benefits, few parts of the hiring process stop Hoosiers from reaching that goal more than the all-too-common job application question of, “What is your current salary?” In fact, one of the best ways to earn a higher salary is typically by switching companies, rather than being promoted internally. But allowing employers to require this question sets Hoosiers back and keeps pay stagnant.
An employee’s wage history is not static; the pay expectations set at a previous job can easily result in future employers replicating that figure, irrespective of the applicant’s qualifications or experience. Hoosiers should not be caught in a financial trap determined by their past income.
This issue also affects Hoosiers long after their career. A person’s benefits are tied to their salary, and a lower salary equates to fewer benefits during retirement. A wage transparency law would allow Hoosiers to apply for roles that not only match their expertise but also provide appropriate payment for this expertise that will serve them well into retirement.
The existing secrecy surrounding salary has another consequence; it helps to further the gender wage gap. Indiana has the eighth-highest pay gap in the country and is higher than the national average. Simply put, the lack of transparency in hiring creates an environment where discrimination and unconscious bias can thrive.
Women, especially women of color, are particularly susceptible in such circumstances. Pay transparency gives women the power to negotiate and advocate for themselves before and after hiring. Hoosier women should never be devalued in the workplace, and the creation of an equitable workplace starts with transparency. Without it, there is no accountability for businesses to enact fair hiring or working conditions.
Hoosiers deserve equitable, fair wages in the workplace. Requiring pay-range disclosure in job listings is a simple matter of fairness.•
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Errington represents District 34 in the Indiana House of Representatives. Send comments to ibjedit@ibj.com.
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