DOVER– On Tuesday, the House passed legislation that aims to address wage disparities and advance pay equity in Delaware.
Sponsored by Rep. Melanie Ross Levin and Sen. Laura Sturgeon, House Substitute 2 for House Bill 105 would require Delaware-based employers to disclose compensation information in all job postings, both internal and external, to provide job seekers and employees with information about wages and benefits upfront.
“Pay transparency is already becoming a common practice across our country and for good reason,” said Rep. Melanie Ross Levin.
“This bill is a win-win for workers and employers. It benefits prospective employees by giving them the knowledge they need to advocate for fair pay, and it benefits employers by creating trust and attracting top talent. I want to thank my colleagues in the House for passing this legislation.”
HB 105(S) would set a pay transparency standard in Delaware by requiring employers to provide the hourly or salary compensation or the hourly or salary compensation range, and a description of the benefits and other compensation.
Research has found that pay transparency can be a simple yet essential tool in closing gender and racial wage gaps by helping women to be clearly informed about the context for negotiations.
In Delaware, women working full-time, year-round earn only 87 cents for every dollar paid to men, with an annual wage of $54,740 compared to men’s $62,740. This difference is even greater for women of color.
Pay transparency benefits also extend to employers by helping them attract top talent, reduce turnover, and build trust with employees. 70% of companies that list pay ranges have seen an increase in applicants, and 66% report a higher quality of candidates.
98% of workers believe employers should disclose pay ranges in job announcements.
14 states, including neighboring Maryland and New Jersey, have passed pay transparency laws.
“Workers deserve to negotiate their salaries from a position of knowledge when seeking employment,” said Sen. Laura Sturgeon.
“House Bill 105 is an important step in supporting working families and creating fairer workplaces, especially for women who continue to earn less than their male peers. I look forward to introducing this legislation to the Senate in the coming weeks.”
HB 105 (S) will now go to the Senate for consideration.
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