EAGAN, MINN. – As employees and lawmakers continue to push for enhanced employee rights, pay transparency laws are becoming more common.
Employers need to be aware of pay transparency laws and understand how they can vary from state to state or city to city, including how potential hires and remote workers can affect employment law compliance.
Some of these laws require employers to provide information about salary ranges and benefits. The specifics of the laws depend on the jurisdiction. Some laws require employers to provide salary range information at different stages of the hiring process, including in job postings, upon hire, or upon request.
This article provides an overview of pay transparency laws for various states, including the effective dates and the circumstances under which they require disclosure of pay range. The laws can differ from state to state, and it is important for employers to understand their specific jurisdiction’s requirements to ensure compliance.
For example, California, Connecticut, Colorado, Maryland, Nevada and Rhode Island have pay transparency laws that require employers to disclose the pay range for a position if the applicant asks for it. However, each of these states has variations in how they implement these laws.
California Pay Transparency Laws
Upon request, an employer must:
• Provide an applicant with the pay range for the position for which they applied (even prior to the initial interview); and
• Provide an employee with the pay scale for their current position.
More pressing for employers, however, California companies with 15 or more employees must include the pay scale for a position in any job posting. If the employer engages a third party to announce, post or publish a job posting, the employer must provide the pay scale to the third party. The third party is required to include the pay range in the job posting.
Connecticut Pay Transparency Laws
In Connecticut, employers must provide salary range information to applicants when they extend an offer of compensation, even if the applicant did not request it. Employees are entitled to salary range information upon hire, when changing roles and upon request.
Colorado Pay Transparency Laws
In Colorado, employers must include pay ranges in job postings and formally notify employees in the state about internal promotion opportunities.
Maryland Pay Transparency Laws
Employers in Maryland are required to provide salary information to applicants upon request and the Equal Pay for Equal Work Act also prohibits employers from asking for a candidate’s prior pay history.
Nevada Pay Transparency Laws
In Nevada, employers must disclose salary ranges to applicants who have completed an interview for the position. Employees are entitled to salary range information when applying for a promotion, transfer or upon request.
Rhode Island Pay Transparency Laws
Effective January 2023 in Rhode Island, employees are entitled to salary range upon hire, when changing jobs and upon request.
New York State Pay Transparency Laws
Effective Sept. 17, 2023, New York State’s pay transparency law applies to employers with at least four workers for positions that will or can be performed in the state. The pay range must be included in postings for jobs, promotions or transfer opportunities performed in New York, including employees working outside of the state but reporting to someone there. Also, job descriptions must be included in job postings, if one exists.
New York City Pay Transparency Laws
New York City’s pay transparency law was delayed and went into effect November 1, 2022. Employers must include a “good faith” estimate of salary ranges in job advertisements and promotions. The law only applies to jobs performed within New York City, including an employee’s home if they work remotely.
Washington Pay Transparency Laws
Effective Jan. 1, 2023, many employers in Washington State must disclose the salary range, or wage scale, and a description of all benefits and other compensation in job posting.
It applies to employers with 15 or more workers. The pay transparency law amended Washington’s existing requirements that employers must disclose wage information to applicants only upon their request.
Under the amended law, job postings are not required, but if job postings are used, employers must include the appropriate disclosures, effective Jan. 1, 2023.
A “job posting” is defined as:
“Any solicitation intended to recruit job applicants for a specific available position, including recruitment done directly by an employer or indirectly through a third party, and includes any postings done electronically, or with a printed hard copy, that includes qualification for desired applicants.”
Employers still need to provide salary range or wage scale upon request to employees offered a new position, promotion or internal transfer.
Employers must review the specific pay transparency laws by state to ensure compliance. The laws are constantly evolving, and employers should stay up to date with new developments.
To learn more about pay transparency, check out GovDocs Clear As Mud: How to Comply with Pay Transparency Laws Webinar.
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With nearly 20% of the Fortune 500 and 30% of the Fortune 50 as clients, GovDocs strives to reinvent the way in which companies remain compliant in the ever-changing employment law landscape.
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