by A few weeks ago New York City began requiring employers with 15 or more employees to include pay ranges for every posted or advertised job opening. Thus is part of the trend known as ‘pay transparency’. The New York City provision is a city-based requirement, but other recently enacted pay transparency requirements are statewide. The requirements of pay transparency laws are intended to help job candidates participate in informed job negotiations. The expectation is that providing pay information before positions are accepted will help reduce gender and racial pay gaps by giving all candidates more information on likely compensation offers.
Depending upon the specifics of the jurisdiction’s pay transparency law, employers who have remote employees in the jurisdiction may be subject to the law for future job advertisements in or out of the state.
States with pay transparency laws include:
California: California-based employers and employers hiring in California with 15 or more employees must include the pay scale for all internal and external job postings.
Colorado: The state’s Equal Pay for Equal Work Act requires employers with one or more Colorado-based employees to post pay range and benefits in job postings and ads. Employers that have one or more Colorado employees are also required to include pay ranges for any posted remote job that could potentially be performed in the state.
Connecticut: Upon request by the job candidate, employers in Connecticut must include a pay range for all extended job offers.
Maryland: Upon request by the job candidate, Maryland employers must provide pay ranges.
Nevada: Nevada employers must provide a salary range to candidates after the first job interview. The candidate does not need to request the information.
Rhode Island: Beginning January 2023, employers must provide candidates with a pay range upon request.
Washington: Upon request, employers must provide a pay range after they have made an offer to the candidate.
The impact of a pay transparency law on out-of-state employers will differ based on the specifics of the law. Employers that have remote workers in these states or that are recruiting workers in these states should review the terms of the jurisdiction’s pay transparency law to assure compliance.
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