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Committee advances bill requiring employers to publish pay-code glossary for employees
Summary
Members moved House Bill 7197 to the floor. The bill would require employers to provide employees and applicants with a glossary or explanation of payroll codes and pay components used on pay stubs so workers can interpret deductions and earnings. Supporters said HR already has the information and the requirement increases transparency; opponents
The Labor and Public Employees Committee advanced House Bill 7197, a measure that would require employers to provide a glossary describing pay codes and other abbreviations used on pay stubs so employees can understand deductions, earnings and benefits.
Supporters said the change is a modest transparency measure that simply requires employers to publish explanations of the pay codes they already maintain in payroll and human-resources systems. Representative Hughes said many applicants don’t want to waste interviews and that posting a pay-code guide is a reasonable step to increase fairness.
Representative Canino opposed the measure on grounds that employers already provide salary information upon request and that requiring a printed glossary is an unfunded compliance mandate that will add costs to employers. She said the information is already available from HR and that mandating a public guide is unnecessary.
Action: The committee moved House Bill 7197 (paycheck transparency) to JFS to the floor; the motion was made and seconded and the clerk reported votes would be held open pending other meetings.
Committee members agreed the bill does not require employers to invent new codes; rather, it requires transparency about the employer’s own existing payroll code definitions and disclosure on request.
