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The main reason is that people are petty, lawsuits are a very risky roll of the dice, and bad PR can cost a lot more than a bad employee.

The other reason is that pay transparency is often anchored to specific credentials and characteristics, and it's often the case that credentials can be orthogonal to work performance. You might have a PhD who can't code who demands higher pay than a HS dropout who designed your entire infrastructure, and the HR department (or lawsuits, or etc) would force you to comply.



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