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Senate Advances Pay‑Transparency Bill Requiring Salary Ranges in Job Ads

Senate · May 8, 2024
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Summary

The Senate adopted a committee report and ordered third reading of H704, a bill requiring Vermont employers to include salary or wage ranges in most job advertisements to improve pay equity. Sponsors said guidance from the attorney general and an outreach timeline will support businesses' compliance.

Senators moved H704, an act to require disclosure of compensation in job advertisements, forward on the floor after a presentation by the bill's reporter. "H704 is a bill designed to improve pay equity for Vermonters," the reporter said, framing the measure as targeted to women and members of the BIPOC community.

The measure, as explained on the floor, would require most job postings for positions in Vermont — including certain remote jobs tied to Vermont work locations — to include a salary or wage range. The sponsor said exceptions would apply for small employers (fewer than five employees), commission‑only roles and certain general hiring notices; tipped positions would require base wage or range disclosure. The attorney general's office would publish guidance and coordinate outreach, with an effective date of Jan. 1, 2025.

Supporters argued the rule is a low‑burden way to reduce negotiation gaps and help close pay disparities. The sponsor cited research demonstrating gains in applicant pools and retention where pay ranges are published and said the Strykolow amendment aligns the bill with HR best practices already in use.

There was little floor contention recorded on the bill's text during the second‑reading adoption of the committee report; the Senate voted to adopt the committee report and ordered third reading. Next steps include the third reading on the floor and any subsequent amendments before final passage or transmittal to the House.