Pay Transparency Laws-New in Effect and On the Horizon
On November 1, 2022, New York City enacted a pay transparency ordinance that joins the state of Colorado and the city of Jersey City, NJ in requiring employers to post a salary range in job postings in an attempt to reduce the ongoing wage gaps in gender, race, and national origin. California will round out the group with a similar law on January 1, 2023.
New York City’s ordinance requires New York City employers to list “good faith” salary ranges for any job posting for a new job, promotion, or transfer. This includes both full time and part time positions as well as remote positions.
California’s law, which will go into effect on January 1, 2023, requires employers to list a pay range in all job postings, whether posted directly by the employer or by a third party. Current employees must also be given a wage range for their current positions upon request. Although this law applies to remote positions with California employers, the law is silent as to whether a pay range must be included in a job posting for a remote position anywhere in the country when the posting may potentially be seen by someone in California. Colorado’s law, which went into effect in 2019, does contain this requirement, which has led to employers restricting job postings to bar Colorado employees from consideration for employment to avoid having to post a salary range. Should California clarify the Code to mirror Colorado’s requirement, it is almost impossible to believe that companies would cut the entire population of California out of their hiring pool.
Rhode Island has its own, less restrictive pay transparency act taking effect on January 1, 2023. As of that date, employers must provide a wage range when an employee is hired, a current employee moves into a new position, or upon an applicant’s request. Rhode Island’s law stops short of New York City and California by using more permissive language and providing that an employer “should” provide a wage range to an applicant prior to discussing compensation.
Connecticut, Maryland, Nevada, and Washington all currently have laws that require employers to provide wage ranges “on request” or at a later stage in the hiring process. It is clear with the two huge job markets, California and New York City, jumping into the pay transparency game, that these types of laws are not far off in the jurisdictions in which you operate. For up to date information on pay transparency laws and responses to all of your pay transparency questions from experienced employment law attorneys, contact myHRcounsel.
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