PETITION FOR SALARY DISCLOSURE TO PROMOTE EQUALITY ACT

In April, Katie Donovan, an equal pay advocate, and speaker on equal pay and women’s salary negotiations, launched a petition to urge the federal government to pass the Salary Disclosure to Promote Equality Act (SDPEA), proposing to give both the company and candidate dignity and fairness in the salary negotiation process.

Donovan explains, “Employers get to ask prospective employees about their salary and credit histories, yet most employers don’t even give the slightest hint of the salary range leaving the applicant at a huge information disadvantage.”

According to the petition, the proposed legislation would include the following components: 

• Requires inclusion of the pay range for all job postings for public and private sector jobs
• Removes the requirement for most job candidates to be subject to a credit check
• Eliminates the requirement for applicants to share salary history 
• Prohibits past employers from sharing a previous employee’s salary history
• Allow employees within the same company to share salary information without fear of dismissal (Also a component of the 2011 Fair Pay Act.)

Why make this a component of the federal agenda?
Donovan states that while companies boldly require more information on potential employees, such as access to social media sites, they may not share the same level of transparency with potential or current employees. Further, there is a lack of actual market data on salaries, particularly based on gender. Female candidates, Donovan believes, still earn about 80 % of the salary of their male counterparts. Cumulatively, that can result in excess of $500,000 over their career tenure. 

Even Forbes contributor, Freek Vermeulen cites pay differential between men and women. He shoots down the story of firm specific skills as the reason.

Donovan believes that the SDPEA would support every man and woman in the job market whether a new college grad looking for the first professional job, a mom re-entering the workforce or one of the millions laid off during the recession and seeking a new opportunity.  

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