California is introducing legislation that would force organizations to list salaries on their job advertisements.
The new bill has been passed by the California legislature and mandates all organizations with 15 or more employees to have to list the hourly pay or salary range on job listings.
It also calls for companies to disclose more information about how much they pay their staff.
The bill will now be scrutinized by Democrat Governor Gavin Newsom.
Representatives for Newsom declined to comment.
If the legislation, if approved, could make employers make nationwide changes to pay and hiring practices, HR experts say.
Some states, like Colorado, have already introduced similar laws.
Another is set to begin in New York next year.
Another bill has been passed that could force fast-food franchisees to give their staff a pay increase.
The changes are set to have a big effect on some huge businesses in the state.
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The likes of Google and Apple have their headquarters in California.
Christine Hendrickson, vice-president of strategic initiatives at Syndio, said:“This is likely going to be the tipping point for many large employers where they consider a nationwide strategy.”
There are more than 19 million workers in the state, including companies like Facebook-parent Meta and Disney.
The bill would mean all of these companies would be required to reveal pay information on postings for jobs.
It would also apply to companies in other parts of the US that are looking for staff in the state.
Companies have been reluctant to add pay information to their adverts as they fear it could make hiring more difficult.
One of their concerns is that existing employees could start questioning their own pay.