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HomeRecruitmentGUIDE TO SALARY TRANSPARENCY LAWS IN 14 STATES

GUIDE TO SALARY TRANSPARENCY LAWS IN 14 STATES


Readability is coming for jobseekers in some states as new legal guidelines go into impact requiring sure employers to offer wage ranges to candidates within the job posting or throughout the interview or wage negotiation course of.
 
Pay transparency can take many varieties, from together with wage ranges on job postings, offering pay and advantages info for positions throughout the firm (together with details about why and the way pay selections are made), to facilitating open discussions amongst co-workers about their salaries.
 
For a lot of staff, open dialogue of wage is already protected by legislation. Below the Nationwide Labor Relations Act, coated staff have the fitting to speak with different staff at their office about their wages. Nonetheless, some corporations have particular insurance policies that prohibit staff from discussing pay throughout working hours or whereas utilizing firm gadgets or firm communication platforms (i.e., social media). And a few staff discover speaking about pay and advantages uncomfortable.
 
However info will be highly effective, particularly wage info. Constructing upon wage analysis from third-party websites like Wage.com, Glassdoor.com, and comparable websites (together with industry-specific web sites), some jobseekers will now have entry to company-provided information about pay ranges. Jobseekers have historically been suggested to request a wage vary from a potential employer, however now this info is required by legislation to be given to them in some jurisdictions.
 
Probably the most important outcomes from the laws is the potential to standardize compensation, particularly for brand new hires versus longtime staff.
 
In lots of states and jurisdictions, pay transparency initiatives are linked to bigger “pay fairness” points, together with gender fairness for salaries and wages.
 
Along with decreasing gender pay inequity, a survey from Certainly.com discovered {that a} full 75 % of jobseekers say they’re extra prone to apply for a job if the posting features a wage vary.
 
Nonetheless, wage is only one part of complete compensation. Jobseekers are nonetheless suggested to contemplate advantages and non-salary perks of employment when evaluating a job provide. As well as, jobseekers ought to contemplate relevant native legal guidelines (metropolis and state) earlier than disclosing wage historical past to a potential employer. In a number of areas, employers are prohibited from asking about earlier compensation; nevertheless, whether it is voluntarily disclosed by an applicant, the knowledge can be utilized to find out a beginning wage or wage.
 
Along with the legal guidelines listed, wage transparency legal guidelines have been proposed in Alaska, Massachusetts, Michigan, South Carolina, and Vermont.
 
Pay transparency initiatives — together with gender-specific pay fairness legal guidelines, wage disclosure necessities, bans on requesting wage historical past, and many others. will be discovered on the Pay Fairness Map (https://www.fisherphillips.com/pay-equity-map/index.html)
Quite a few states have handed legal guidelines affecting employers’ necessities to offer wage and wage ranges, disclosure of applicant’s wage historical past, and/or pay fairness amongst genders. As well as, sure cities have particular legal guidelines associated to wage transparency and/or pay fairness. Here’s a abstract of the related laws (as of October 2022):
 
CALIFORNIA (Labor Code Part 432.3, Senate Invoice 1162)
California was the primary state within the U.S. to legally require employers to offer the pay vary for a job, if the applicant requested for it after the primary interview. Efficient Jan. 1, 2018, Labor Code part 432.3 was enacted, prohibiting employers (with restricted exceptions) from requesting wage info from candidates and requiring employers to produce pay scales upon request from an applicant.
 
With Senate Invoice 1162, efficient Jan. 1, 2023, employers with 15 or extra employees should embrace the pay scale for a place within the job posting (together with third-party job postings). Firms should present the pay scale for a place to anybody making use of for employment.
 
Employers, upon request from an worker, should additionally present the pay scale for the worker’s present place. Employers are additionally required to take care of data of job titles and wage price historical past for workers in the course of their employment plus three years.
 
Employers are prohibited from looking for wage historical past info (together with compensation and advantages) or utilizing the applicant’s wage historical past info to find out whether or not to supply employment or what wage to supply an applicant. Nonetheless, candidates can voluntarily present wage historical past info (and, when disclosed on this method, the knowledge will be thought-about or relied upon in figuring out the wage provided the applicant).
 
Penalties for violations vary from $100 to $10,000 per violation. As well as, people can pursue civil actions below the legislation’s provisions.
 
San Diego, CA (Article 2, Division 48)
San Diego’s “Equal Pay Ordinance,” efficient Jan. 1, 2018, requires employers who contract with the Metropolis of San Diego to pay staff equal wage charges for equal or considerably comparable work, no matter an worker’s gender, race, or ethnicity.
 
San Francisco, CA (Article 33J: Parity in Pay)
San Francisco’s “Parity in Pay Ordinance,” efficient July 1, 2018, prohibits each non-public and public employers from asking job candidates to reveal wage historical past. Nonetheless, if the applicant voluntarily discloses the knowledge (with out prompting), employers could contemplate the knowledge in figuring out beginning pay for the applicant.
 
COLORADO – “Equal Pay for Equal Work Act” (SB19-085)
Enacted in 2019, the “Equal Pay for Equal Work Act” prohibits employers from looking for the wage price historical past of a potential worker or requiring disclosure of wage price as a situation of employment. It additionally prohibits corporations from counting on a previous wage price to find out a wage price to supply an applicant. Staff can’t be discharged, disciplined, discriminated in opposition to, or in any other case interfered with for inquiring about, disclosing, or discussing the worker’s wages. As well as, employers are required to announce to all staff “employment development alternatives and job openings and the pay vary for the openings.” Fines for violations vary from $500 to $10,000 per violation.
 
CONNECTICUT – “An Act In regards to the Disclosure of Wage Vary for a Vacant Place” (Home Invoice 6380, Public Act 21-30)
Efficient Oct. 1, 2021, employers positioned within the state who’ve at the least one worker (whether or not or not staff bodily work within the state) are required to reveal wage ranges for vacant positions to present staff and candidates, upon request or on the time the applicant is made a suggestion of compensation (whichever is earlier).
 
Present staff have to be offered the wage vary for his or her present position upon hiring, a change within the worker’s place with the employer, or upon first request by the worker.
 
The legislation doesn’t require employers to reveal compensation for any particular worker or for a place the applicant isn’t making use of for. The wage vary will be based mostly on a pay scale, any beforehand decided vary of wages for the place, the precise vary of wages for present staff in comparable positions, or the quantity budgeted by the employer for the place.
 
The legislation additionally prohibits employers from inquiring about an applicant’s wage historical past. The legislation prohibits employers from inquiring (or utilizing a 3rd occasion to inquire) a few potential worker’s wage and wage historical past (except the applicant has voluntarily disclosed that info).
 
DELAWARE (Home Invoice 1)
Efficient December 2017, Delaware prohibits employers from asking job candidates about their wage historical past and from inquiring about this information from an applicant’s present or former employer. Employers will not be allowed to have interaction in salary-based screening of job candidates, the place prior compensation should meet sure minimal or most standards. Employers are allowed to verify wage historical past (“for the only objective of confirming the applicant’s compensation historical past”) after an employment provide has been made and accepted and compensation phrases have been agreed to.
 
Violators are topic to civil penalties of “not lower than $1,000 nor greater than $5,000 for the primary offense and never lower than $5,000 nor greater than $10,000 for every subsequent violation.”
  
MARYLAND – “The Equal Pay for Equal Work Legislation” (Home Invoice 123)
As of Oct. 1, 2020, HB123 requires employers present a wage vary for a place upon request of the applicant. It additionally prohibits employers from requesting or requiring candidates to offer wage historical past “by any means” (orally, in writing, and/or from a third-party, together with the present or former employer of the applicant). Nonetheless, if an applicant affords wage historical past to help the request for a better wage, the employer could get hold of wage info to justify the upper wage request. Candidates could voluntarily share wage historical past; nevertheless, employers could not use that info to find out a wage “if doing so will create an illegal pay differential based mostly on intercourse or gender id.” Complaints will be filed with the Maryland Labor Fee of the Division of Labor and Business and fines of $300 or $600 “or extra” will be assessed.
 
MASSACHUSETTS – “An Act to Set up Pay Fairness, an replace to the Massachusetts Equal Pay Act (MEPA)” (Acts of 2016, Chapter 177)
In 1945, Massachusetts was the primary state within the nation to go an equal pay legislation. In 2018, the state turned the primary to ban wage historical past questions earlier than extending a suggestion of employment. The Massachusetts Equal Pay Act turned efficient July 1, 2018. Employers could not search the wage or wage historical past of any potential worker earlier than making a suggestion that features compensation, and will not require {that a} potential worker’s wage or wage historical past meet sure standards.
 
The legislation covers staff who work in Massachusetts in addition to those that telecommute to a Massachusetts workplace.
 
Candidates can share their wage historical past with a potential employer, however will not be required to take action. Employers can not ask a query about wage historical past on employment functions. Nonetheless, employers could ask about “wage expectations.”
 
Staff have three years from the date of an alleged violation to convey an motion in court docket.
 
NEVADA (Senate Invoice 293)
Efficient Oct. 1, 2021, any public or non-public employer in Nevada should disclose a wage or wage vary to candidates after an preliminary interview. Present staff making use of for a promotion or switch (or who full an interview for a promotion or switch, have been provided a promotion or switch, or request info to contemplate a promotion or switch) have to be offered a wage or wage vary.
 
As well as, employers are prohibited from inquiring about an applicant’s wage historical past, or discriminating in opposition to an applicant who refuses to offer wage historical past. Each private and non-private employers are allowed to ask candidates for his or her “wage expectations” for the place, and if this info is volunteered, it may be used to make wage affords.
 
Administrative penalties of as much as $5,000 will be instituted by the Nevada Labor Commissioner for violations. As well as, civil actions will be pursued below sure circumstances.
 
NEW JERSEY (New Jersey Statute Part 34:6B-20)
Efficient Jan. 1, 2020, employers in New Jersey are prohibited from screening job candidates on the premise of the applicant’s wage historical past (together with, however not restricted to, prior wages, salaries, or advantages). Employers could contemplate wage historical past when figuring out compensation solely if the applicant voluntarily offered the knowledge (with out employer prompting or coercion). As well as, an applicant’s refusal to volunteer compensation info can’t be thought-about when deciding whether or not to make a suggestion of employment. An employer could request that an applicant present the employer with a written authorization to verify wage historical past (together with, however not restricted to, the applicant’s compensation and advantages) after a suggestion of employment (that features an evidence of the general compensation bundle) has been made to the applicant.
 
Employers who share wage info with different potential employers with out the categorical consent of the applicant will be topic to civil penalties of $1,000 for a primary violation, $5,000 for a second violation, and $10,000 for every subsequent violation.
 
Jersey Metropolis, NJ (Ordinance No. 22-045)
Efficient (as amended) June 15, 2022, coated employers, employment companies, and brokers of coated employers (these with 5 or extra staff inside Jersey Metropolis, together with counting unbiased contractors in the direction of the worker threshold) should present a minimal and most wage vary and advantages in each job posting or commercial, whether or not the job posting or discover is in print or digital type.
 
As well as, it’s illegal for employers to display a job applicant based mostly on the applicant’s wage historical past or require that the applicant’s wage historical past fulfill any minimal or most standards.
 
Violations are topic to fines of as much as $2,000.
 
NEW YORK STATE (S9427) – Not But Signed Into Legislation
Lawmakers in New York State handed a invoice in June 2022 requiring private-sector employers to reveal the compensation or vary of compensation in any commercial for a job, promotion, or switch alternative. The governor (as of September 2022) has not but signed the invoice into legislation, and it will go into impact 270 days after signing. As soon as enacted, employers should present a job description for the position, if one exists. Most necessary is that the statute states that it applies to any jobs that can or will be carried out (at the least partially) within the state — that means that it will possibly probably be utilized to distant job positions. Employers who fail to adjust to the statute will be fined as much as $3,000.
 
New York, NY – “New York Metropolis Pay Transparency Legislation” (Native Legislation No. 59, Int. 0134-A)
Beginning Nov. 1, 2022, corporations that carry out work in New York Metropolis should embrace wage ranges (“minimal and most wage info”) in job postings.
 
Employers should present “a superb religion wage vary for each job, promotion, and switch alternative marketed,” in response to the Metropolis’s Fee on Human Rights. Momentary assist companies promoting jobs for short-term employment are exempted from the requirement.
 
Firms face fines of as much as $250,000 for noncompliance after a primary offense (the high quality for a primary offense is zero, and employers have 30 days to appropriate the deficiency). Solely present staff can sue the employer for posting a job, promotion, or switch with out posting a minimal and most hourly wage or annual wage.
 
Ithaca, NY  (Ithaca Metropolis Code § 215-3(F))
Efficient Sept. 1, 2022, employers with 4 or extra staff are required to incorporate a wage vary (minimal and most hourly or wage compensation) for job commercials (in addition to postings for promotions or transfers). The requirement doesn’t apply for job commercials for short-term employment at a short lived assist agency.
 
Westchester County, NY (Westchester County Native Legislation No. 119)
Beginning Nov. 6, 2022, employers with at the least 4 staff are prohibited from promoting a place (or promotion or switch) with out together with a wage vary. The legislation applies to positions which are carried out in complete or partially in Westchester County (in individual or remotely). Violations are topic to penalties of as much as $250,000.
 
OHIO
Cincinnati, OH – “Prohibited Wage Historical past Inquiry and Use” (Ordinance 83-2019)
Efficient March 2020, employers with 15 or extra staff within the metropolis of Cincinnati are barred from inquiring about or counting on job candidates’ wage histories. Employers can not inquire in regards to the wage historical past of an applicant, display candidates based mostly on present or earlier wage historical past, or use the wage historical past of an applicant to resolve whether or not to increase a job provide or in figuring out wage and different compensation. Candidates can’t be retaliated in opposition to for not disclosing wage historical past. Employers are allowed to ask candidates about their wage expectations. As well as, employers should present a pay scale for the place, upon request, after the employer extends a conditional provide of employment.
 
Toledo, OH – “Pay Fairness Act to Prohibit the Inquiry and Use of Wage Historical past in Hiring Practices within the Metropolis of Toledo” (Ordinance 173-19)
Efficient June 2020, employers with 15 or extra staff should present, upon request, an relevant pay scale to job candidates who’ve acquired conditional affords of employment.
 
Employers are prohibited from inquiring about or utilizing an applicant’s wage historical past in deciding whether or not to increase a job provide or in figuring out wage or different compensation. Employers can not refuse to rent an applicant or retaliate in opposition to an applicant for not disclosing wage historical past. The legislation doesn’t apply to present staff looking for inner positions.
 
Civil lawsuits could also be filed, if relevant, inside two years of a violation.
 
OREGON – “The Oregon Equal Pay Act of 2017” (Home Invoice 2005 [2017])
The act was signed into legislation in June 2017. Employers with a number of staff performing work within the state of Oregon are topic to the legislation.
 
Efficient October 2017, employers had been now not allowed to ask candidates about their wage historical past. Employers can not ask for a employee’s wage or pay historical past earlier than they make a suggestion of employment, though they’ll ask an applicant’s “most well-liked wage.” As well as, employers can not display job candidates based mostly on present or previous wage or pay historical past. Employers additionally can not decide compensation for a job based mostly on the present or previous compensation of an applicant.
 
In January 2019, extra provisions got here into place affecting pay disparities, requiring employers to pay each employee “equal pay for equal work no matter gender, race, age, or different protected traits.”
 
Additionally, staff requested about their wage historical past or alleging pay fairness discrimination are allowed to pursue a personal proper of motion. And, employers are prohibited from figuring out compensation based mostly on a candidate’s wage historical past, even when a candidate voluntarily revealed their wage historical past. Efficient in October 2022, employers are now not allowed to omit hiring and retention bonuses from consideration in an equal pay evaluation.
 
PENNSYLVANIA
Philadelphia, PA – “The Philadelphia Wage Fairness Ordinance” (Philadelphia Fee on Human Relations, Regulation No. 7)
This legislation, efficient Sept. 1, 2020, makes it unlawful for employers with a number of staff doing enterprise within the metropolis of Philadelphia, employment companies, or their brokers to ask candidates for present or prior wage historical past throughout the utility or hiring course of. It applies for positions positioned in Philadelphia (no matter the place the employer is headquartered). As well as, employers can not retaliate in opposition to an applicant for refusing to offer wage historical past.
 
The legislation doesn’t prohibit employers from asking candidates about their “wage expectations.”
 
Candidates reporting violations of the Wage Fairness Ordinance to the Philadelphia Fee on Human relations could also be awarded compensatory damages, punitive damages, cheap attorneys’ charges, prices, or “different acceptable reduction” if the criticism is substantiated.
 
RHODE ISLAND – “The Rhode Island Equal Pay Legislation” (2021-S 0270A, 2021 H 5261A)
Efficient Jan. 1, 2023, employers with a number of staff within the state are required to offer candidates with a wage vary upon request. If a wage vary isn’t requested upon utility, employers “ought to present the wage vary for the place previous to discussing compensation.”
 
If an employer affords an applicant a place, the employer could search to acquire details about the applicant’s wage historical past to help a wage increased than the wage being provided (if the applicant voluntarily offered their wage historical past).
 
For present staff, wage ranges can embrace relevant pay scales and what different staff in comparable positions have been paid.
 
Present staff can request the wage vary for his or her place at any time throughout employment. Violations of the legislation are topic to fines of as much as $1,000 per violation (first offense) to $5,000 (two or extra violations in a seven-year interval).
 
WASHINGTON – “The Washington Equal Pay and Alternatives Act” (Chapter 49.58 RCW)
Beginning Jan. 1, 2023, employers with 15 or extra staff should present a wage scale or wage vary for every job posting (not only a minimal wage or wage). The job posting should embrace an outline of all advantages and compensation provided (not simply wage or wage). For inner roles, employers are required to offer a wage vary or wage scale upon request (and all positions should have a wage scale or wage vary).
 
The legislation additionally prohibits employers from limiting an worker’s capacity to debate wages and prevents nondisclosure of wages as a situation of employment.
 
Fines for violations vary from as much as $500 for a primary offense to $1,000 (“or 10 % of the damages, whichever is larger”) for repeated offenses. As well as, staff could convey a civil motion in opposition to an employer for precise and/or statutory damages in addition to attorneys’ charges.
 
Observe: This info is offered for informational functions and doesn’t include or convey authorized recommendation. The data herein shouldn’t be used or relied upon in regard to any explicit info or circumstances with out first consulting a lawyer. 



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