UPDATE – 12/20/2021
Pay Transparency Laws

Just a week ago, I blogged about how Pay Transparency is becoming more and more prevalent in different states and why the government is pushing for it. To read the full article, click here.

NEW UPDATE

New York City has passed its version of the Pay Transparency Act on Wednesday, December 15 in a 41 to 7 vote. The bill says employers failing to list the salary ranges for NYC-based roles are engaging in discriminatory practices.

What you need to know:

  • Starts April 2022
  • Job Listing will now be required to have a salary range

So what if you are not in NYC? Do you get a pass? Not quite. Similar pay transparency laws already exist in 7 other states and what happens in one state has a way of spreading.

For those in NY but not in NYC, you need to start gettin ready (if you have not done so already), as the NY Senate is working on bill S5598B to impact all of NY. And this bill comes with additional requirements of providing the pay range to your employees upon issuing an employment opportunity for internal or public viewing or upon employee request

Even if you are not in a state that currently requires you to be transparent with your salary ranges, being prepared for the inevitable is just smart business. AND if your company can start doing this before it’s required, you build good faith with your current employees and you will notice a better recruiting outcome as well.

Recap on States with Pay Transparency Laws?

Below are some states that have enacted or are working toward enacting pay transparency laws. As the trend for pay transparency continues, companies will need to stay vigilant on the new laws, especially when hiring anywhere in the US.

  • California – employers are required to disclose the pay range to applicants upon request.
  • Colorado – with the implemented of the most burdensome requirement with their state transparency laws, employers (with 1 or more employees) are required to disclose the pay range on the job posting, provide general description of other compensation available for the role, AND provide a general description of the benefits. Additionally, Colorado companies are required to provide written notice to their employees of any “promotional opportunity”
  • Connecticut now requires employers to provide the salary range to applicants (1) upon request and (2) by the time it extends an offer of compensation (if the applicant did not request it).
  • Maryland – employers are required to disclose the pay range to applicants upon request.
  • New York City – employers are required to disclose the pay range on the job posting
  • Nevada – employers are required to provide the pay range to applicants who have completed an interview, even without a request.
  • Rhode Island – employers are required to disclose the pay range to applicants upon request. Employers are also require to provide employees pay range disclosures upon hire, when changing jobs, and if they ask for it.
  • Washington – employers are required to disclose the pay range to applicants upon request. Employers are also required to provide the salary range to employees who are changing roles, if they request it.
  • And other states such as Massachusetts and New York are currently reviewing bills for pay transparency.

Is your company ready to publicly display pay ranges on your open positions without upsetting your current staff? Do you have salary ranges for all your jobs and are they updated? Need help evaluating and planning your compensation structure to minimize employee turnover? Reach out to us for support, we can help get you ready.