Pay Transparency Is About Risk Management, Not Optics
Pay transparency is no longer a “nice to have” or something that only matters in states with formal disclosure laws. It is rapidly becoming a compliance issue nationwide, driven by increased scrutiny from regulators, attorneys, and employees themselves.
Even in states without salary range posting requirements, employers are being examined for inconsistent pay practices, unexplained wage disparities, and poorly documented compensation decisions. Investigators are not focused on what employers intended. They are focused on internal equity, patterns across roles and departments, and whether decisions can be clearly explained and supported.
The biggest risk for employers is informal decision-making. When compensation is set manager by manager, negotiated quietly, or adjusted without documentation, disparities emerge. Over time, those inconsistencies form patterns that are difficult to defend and easy to challenge, especially when similar roles are paid differently without a legitimate business reason.
In 2026, the real compliance question is not whether you post salary ranges. It is whether your pay decisions are consistent, defensible, and supported by clear documentation across roles, departments, and leaders. Employers who cannot articulate why employees are paid differently are exposed, regardless of whether transparency laws apply.
Smart organizations are treating pay transparency as a governance issue. Clear compensation structures, documented pay decisions, and manager training are no longer optional. Transparency without consistency does not reduce risk, it creates it.
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Erin Eilers, M.S., PHR
Eilers HR Consulting
erin@eilershr.com | (561) 876-4750
