Bill Mandates Disclosure of Salary Ranges for Open Positions
Legislation requiring employers to disclose the salary range for vacant positions has negative implications for job applicants and businesses. HB 6933 impedes an employer's flexibility to adjust salaries to reflect applicant skill sets.
While the motives behind HB 6933 may be good, the measure could hurt job seekers and employers, CBIA’s Eric Gjede told a Feb. 21 Labor and Public Employees Committee hearing.
For example, a potential applicant qualified for the high end of a posted salary range may not apply because the range is too low, he said.
“This prevents the opportunity for an employer to offer a greater salary or benefits to extremely well-qualified candidates,” Gjede said.
“Conversely, this legislation could also be a barrier to lesser-skilled candidates being considered for a job.
The bill not only prevents employers from adjusting a position's pay to suit a candidate, it blocks an employer from potentially adjusting a salary range due to a change in the company's fiscal outlook.
Gjede noted that cooperation between the business community and the Labor Committee over the past year has improved the hiring process and encouraged more conversations between employers and employees about compensation.
"HB 6933 creates needless barriers to those conversations," Gjede said in urging the committee to take no action on the bill.
HB 6933 impedes an employer's flexibility to adjust salaries to reflect applicant skill sets.
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