Pay Transparency Laws Expand Across the Nation
The recent push toward pay transparency has yielded a flood of new mandates requiring employers to disclose pay ranges in job postings. As we close out 2022 and prepare for 2023, employers need to know where these new laws apply, what the requirements are, and when they take effect.
Here’s what employers need to know now, to prepare for hiring in 2023.
A quick guide to the states, counties, and municipalities requiring salary and pay range disclosures in job postings:
California now requires employers to include pay ranges in job postings. California recently enacted pay reporting legislation and requires California employers with 15 or more employees to include the salary or hourly wage range of positions in job postings. This California law takes effect on January 1, 2023.
Colorado requires employers to include the pay, or pay range, of a position in the job posting, plus a description of incentive compensation (applicable bonuses, commissions, etc.) and benefits. This Colorado law has been in effect since January 1, 2021
Jersey City, New Jersey’s pay transparency law applies to employers employing 5 or more employees with a principal place of business in Jersey City. The law requires employers who advertise employment opportunities in print or digital media within Jersey City to include a minimum and maximum “good faith” salary or wage range (including benefits). The Jersey City law took effect on June 15, 2022.
Ithaca, New York enacted a law making it an unlawful discriminatory practice for an employment agency, employer, employee, or agent to advertise an opportunity for employment (including a job, promotion, or transfer opportunity) without stating the minimum and maximum hourly or salary compensation for the position in the advertisement. The law is applicable to employers with 4 or more employees. This law became effective on September 1, 2022.
New York City’s salary disclosure law and amendment requires employers to provide the minimum and maximum salary range (but not bonus, incentive compensation, or benefits) that the employer in good faith believes at the time of posting it would pay for the advertised job. The New York City law came into effect on November 1, 2022.
New York State’s legislation is still pending. The proposed legislation will require salary range disclosures in job postings. When the governor signs the bill, it comes into effect 270 days after signature.
Westchester County, New York passed its own pay transparency law requiring employers to include the minimum and maximum salaries for jobs performed in Westchester County (in whole or in part) in job advertisements, this includes remote positions. The Westchester County law took effect on November 6, 2022.
Washington’s amendment to its Equal Pay and Opportunity Act will require disclosure of wage, salary, and benefits information in job postings, but only when requested. The Washington amendments will go into effect on January 1, 2023.
Employers should ensure that their job postings are revised to comply with applicable law(s), including employers advertising positions that may be performed remotely from a state with a disclosure law. We advise you to mitigate risk by reviewing your organization’s pay practices and establishing a pay transparency strategy. You should also ensure that any employees involved in the hiring or payroll processes are adequately trained on allowed topics and questions during an interview, and know not to request details on a candidate’s pay history.