Posted March 2nd, 2022 in Legal Insights with Tags The Equal Pay Advisor
Keeping Up With Pay Transparency Laws
New York City will soon be joining the growing list of jurisdictions that have passed pay transparency laws. Effective May 15, 2022, employers with at least four employees in New York City will be required to disclose the minimum and maximum salaries for their positions.
Employers must include salary ranges on all job postings, including internal postings for promotion or transfer opportunities. In providing salary ranges, employers must use good faith to determine, at the time of the posting, what it would pay for the position. An employer’s failure to provide salary ranges puts them at risk for an unlawful discriminatory practice claim under the New York City Human Rights Law (“NYCHRL”). Under the relevant provisions of the NYCHRL, the New York City Commission on Human Rights is authorized to impose civil penalties for such claims.
New York City’s pay transparency law is part of a growing trend across the country. Here is a round-up of the states and cities where employers are required to disclose salary ranges or other compensation information.
- California: California employers are required to disclose the salary range for a position after an initial interview and if the applicant requests it.
- Cincinnati, Ohio: Employers in Cincinnati are required to provide the salary range to an applicant after an offer has been made and if requested by the applicant.
- Colorado: Colorado law requires employers to provide the salary range and benefits in job postings for positions that are located in or could be performed remotely in the state. Promotional opportunities are considered any existing or new position that could be considered a promotion for any current employee in terms of compensation, benefits, and access to further advancement.
- Connecticut: Employers in Connecticut are required to provide the salary range upon request by an applicant, or before or at the time the applicant is made an offer of compensation. An employer must also provide an employee the salary range when they are hired, if the employee changes to a new position, or if the employee requests it.
- Maryland: Maryland law requires employers to disclose the salary range to applicants upon request.
- Nevada: Nevada employers must provide the salary or pay range to applicants after an initial interview, even if the applicant has not requested that data. Employers must also provide employees the salary or pay range for a transfer or promotion if an employee has applied for it, completed an interview, and requests the information.
- Rhode Island: Effective January 2023, upon request, employers will be required to provide applicants with the salary range. Employers will be required to provide employees with the salary range if the employee transfers to a new position within the company, even if the employee does not request that data.
- Toledo, Ohio: Employers in Toledo are required to provide the salary range to an applicant after an offer has been made and if requested by the applicant.
- Washington: Washington requires employers to provide the minimum and maximum pay ranges for a position after an offer has been made and if the applicant asks for it. Employers are also required to provide the range for an internal transfer or promotion if the employee requests that data.