New Pay Transparency Laws Require Salary Range Information on Job Postings
Key Takeaways:
- California and Washington join New York City and Colorado as businesses advertising job postings must also post the position’s minimum and maximum salary range.
- New York City, California, Colorado and Washington’s pay transparency law are applicable to remote workers. Employers must take notice of remote workers’ physical locations to ensure compliance.
On January 1, 2023, California and Washington joined New York City and Colorado in requiring that businesses advertising job postings also post the position’s minimum and maximum salary range. A statewide pay transparency law will go into effect for New York City on September 17, 2023.
Where California and Washington require in-state employers with 15 or more employees to post salary range information, New York City’s pay transparency law is applicable to in-state employers with four or more employees, to include the owner or individual employer.
New York City, California, Colorado and Washington also require applicable businesses that employ at least one worker within the city/state or advertise job positions within the area to post salary range information. As a result, out-of-state businesses that employ remote workers may also be required to comply with the new pay transparency mandates. Employers must take note of the physical location of remote workers, the location from which the job can be performed, and where job advertisements are being placed to ensure compliance. The salary posting requirement is applicable to:
- Internal company boards
- External third-party sites such as LinkedIn
- Any written media
- Internal transfers
- Promotions
Salary postings must also be provided to existing employees on request. In addition to posting salary ranges, employers are also required to maintain and submit salary/wage history records.
The new pay transparency laws follow a trend aimed at increasing worker protection and ending gender and racial wage inequality. Currently, pay transparency legislation is pending in Massachusetts and South Carolina. Failure to comply with the new transparency laws can result in civil liabilities and non-compliance penalties. Employers with any questions regarding compliance with the new pay transparency laws or the mandated reporting requirements can contact Lisa M. Scidurlo.
