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HR Newsletter

Fall 2022 Edition

Posted on September 28, 2022 | Compliance

Trend to Watch: Wage Transparency Laws

Laws addressing wage transparency are rapidly increasing in an effort to help ensure pay equity. Some of the laws attempt to do so by simply prohibiting employers from banning discussions about pay. Others go a step further by requiring employers to provide pay range information to applicants and employees. Here's an overview of both types of laws.

Laws prohibiting wage secrecy policies:

Federal law:

Under Section 7 of the National Labor Relations Act (NLRA), employees have, among other things, the right to act together to improve wages and working conditions and to discuss wages, benefits, and other terms and conditions of employment, with or without a union. The National Labor Relations Board (NLRB), which enforces the NLRA, and many courts have found that pay secrecy or pay confidentiality rules violate Section 7 rights. As such, all employers should avoid employment actions or implementing policies that could be construed to restrict employees' rights under the NLRA. Instead, take steps to better communicate information about your company's compensation program and how employees' salaries and wages are determined.

State and local laws:

Currently, twenty states and the District of Columbia have enacted laws that expressly prohibit employers from banning employees from discussing their wages. The states with these laws include:

Map

Some local jurisdictions have also enacted similar laws. Check your state and local laws for details.

Laws requiring disclosure of pay ranges:

Several states and local jurisdictions require private sector employers to disclose the pay range for a position to an applicant or employee. Here are some examples:

State or local jurisdiction

Covered employers

Pay disclosure requirements

California

All

Effective through 12.31.22:

  • Upon request after an initial interview, employers must provide the pay scale for a position to an applicant.

Effective beginning 1.1.23:

  • Upon request, an employer must:
    • Provide an applicant with the pay scale for the position for which they applied (even prior to initial interview); and
    • Provide an employee with the pay scale for their current position.
  • An employer 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 scale in the job posting.

Colorado

All

In each posting for each job opening, an employer must disclose:

  • The hourly rate or salary compensation (or a range thereof) that the employer is offering for the position; and
  • A general description of all employment benefits the employer is offering.

Connecticut

All

Employers must:

  • Provide a job applicant with the wage range for a position for which the applicant is applying, upon the earliest of (1) the applicant's request, or (2) prior to or at the time the applicant is made an offer of compensation; and
  • Provide an employee with the wage range for their position upon (1) their hiring, (2) a change in the employee's position with the employer, or (3) the employee's first request for a wage range.

Maryland

All

Upon request, an employer must provide an applicant with the wage range for the job for which the applicant applied.

Nevada

All

Employers must:

  • Provide the wage or salary range or rate for a position to a person who has completed an interview for the position.
  • Provide the wage or salary range or rate for a promotion or transfer to a new position to an employee who has:
    • Applied for the promotion or transfer;
    • Completed an interview for the position or been offered it; and
    • Requested the wage or salary range or rate.

Jersey City, New Jersey

Employers with five or more employees

Employers that use any print or digital media circulating within the city to provide notice of employment opportunities must disclose a minimum and maximum salary and/or hourly wage, including benefits, in the posting or advertisement.

New York City (effective 11.1.22)

Employers with four or more employees

When advertising a job, promotion, or transfer opportunity, employers must state the minimum and maximum annual salary or hourly wage for the position.

Ithaca, New York

Employers with four or more employees

When advertising a job, promotion, or transfer opportunity, employers must state the minimum and maximum annual salary or hourly wage for the position.

Westchester County, New York (effective 11.6.22)

Employers with four or more employees

When advertising a job, promotion, or transfer opportunity, employers must state the minimum and maximum annual salary or hourly wage for the position.

Cincinnati, Ohio

Employers with 15 or more employees

Upon request, employers must provide the pay scale for a position to an applicant who has received a conditional offer of employment.

Toledo, Ohio

Employers with 15 or more employees

Upon request, employers must provide the pay scale for a position to an applicant who has received a conditional offer of employment.

Rhode Island (effective 1.1.23)

All

Employers must:

  • Upon request, provide the wage range for the position for which the applicant is applying.
  • Provide an employee the wage range for the employee's position at the time of hire, when the employee moves into a new position, and upon request.

Washington

Employers with 15 or more employees

Effective through 12.31.22:

  • Upon request after the employer has initially offered the position, the employer must provide the minimum wage or salary for the position for which the applicant is applying.

Effective beginning 1.1.23:

  • In each posting for each job opening, employers must disclose the wage scale or salary range and a general description of all the benefits and other compensation.

Note: In June 2022, the state legislature in New York approved Senate Bill 9427, which would require employers with four or more employers to disclose salary and pay range information to applicants and employees. If signed by the governor, it would take effect 270 days later.

Conclusion:

Employers should ensure compliance with applicable wage transparency laws. Even if your state or city hasn't enacted legislation yet, many jurisdictions are contemplating such laws, so watch for developments closely.

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