Pay Transparency Laws: What Small Businesses Need to Know

By OLIVIA CHEN of NerdWallet

As more states adopt pay transparency laws, many small businesses will need to comply with legislation if they or the candidates they’re sourcing are located within these states. For businesses that don’t have as many resources to dedicate to HR, simply tracking and compiling their internal employment data can help answer questions about pay equity and can provide information for hiring decisions. Beyond legal and monetary ramifications of not complying, there may also be less quantifiable consequences as candidates come to expect this information from potential employers. While small businesses may be concerned over how they’ll be compared to larger corporations, they can highlight other benefits to recruit top talent.