It’s the law in some cases, but compliance is only the beginning. Adopting pay transparency may also help you improve pay equity, build trust with your employees and establish yourself as an employer of choice.
In the latest effort to address unequal pay, several states and local jurisdictions have enacted pay transparency laws that require employers to disclose a wage or wage range to prospective candidates and/or current employees. Depending on the law, disclosure occurs upon request, at a certain point in the hiring process or publicly in a job posting.
As states and local jurisdictions continue to pass new legislation, pay transparency will become more critical. Select a location to see the pay transparency laws in your area.
Upon request, all employers must:
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.
In each posting for each job opportunity, all employers* must disclose:
Effective January 1, 2024, employers must make reasonable efforts to provide, within 30 days of selection, information to certain employees about the candidate selected.
*Through July 1, 2029, employers physically located outside of Colorado with fewer than 15 employees working remotely in Colorado are only required to provide notice of remote job opportunities.
All employers must:
Beginning June 30, 2024, employers must provide the minimum and maximum projected salary or hourly pay in all job listings and position descriptions advertised.
In stating the minimum and maximum salary or hourly pay for the position, employers must extend the range from the lowest to the highest salary or hourly pay that they in good faith believe at the time of the posting they would pay for the advertised job, promotion or transfer opportunity.
Before the first interview, employers must also disclose to prospective employees the existence of health care benefits available to the employee.
Effective January 1, 2024, employers with 50 or more employees must disclose in job listings an hourly rate or salary range that reasonably reflects the actual expected compensation for the position.
The requirement doesn’t apply to job listings for positions that are internal transfers or promotions within a current employer.
Effective January 1, 2025, employers with 15 or more employees must include in any job posting the pay scale and benefits for the position. The requirement for job postings only applies to positions that:
Upon request, all employers must provide an applicant with the wage range for the job for which the applicant applied.
All employers must:
Jersey City, New Jersey
Employers with five or more employees that advertise by any means to provide notice of employment opportunities, transfers or promotions must disclose a minimum and maximum annual salary or hourly wage in the posting or advertisement.
Effective Sept. 17, 2023, employers with four or more employees must, when advertising a job, promotion or transfer opportunity, state the minimum and maximum annual salary or hourly wage for the position. For positions compensated solely on a commission basis, employers can comply with the law by including a general statement that compensation will be based on commissions. Employers must also disclose the job description for the position, if one exists.
The law applies to advertisements for positions that will physically be performed, at least in part in New York, as well as jobs that will physically be performed outside of New York but report to a supervisor, office, or other work site in New York.
Albany County, New York
Employers with four or more employees are required to state the minimum and maximum salary or hourly wage for a position when advertising a job, promotion or transfer opportunity. This requirement does not apply to temporary jobs at a temporary help firm.
Employers with four or more employees whose standard work locations are in the city of Ithaca must include the minimum and maximum hourly or salary compensation in each posting for a job, promotion or transfer opportunity. The ordinance does not apply to job advertisement for temporary employment at a temporary help firm.
New York City, New York
Employers with four or more employees (including independent contractors but excluding temporary employees hired through temporary help firms) are required to disclose the expected salary range for a position on internal and external job listings. Positions that cannot or will not be performed, at least in part, in the city of New York are excluded.
Westchester County, New York
Employers with four or more employees must include the minimum and maximum salary in each posting for a job, promotion or transfer opportunity. The law applies to a posting for positions that are required to be performed, in whole or in part, in Westchester County, whether in an office, in the field or remotely. It does not apply to job advertisement for temporary employment at a temporary help firm.
The law will become null and void on the day that similar statewide legislation goes into effect. As such, the Westchester County law will no longer apply as of September 17, 2023.
Employers with 15 or more employees within Cincinnati must, upon request, provide the pay scale for a position to an applicant who has received a conditional offer of employment.
Employers with 15 or more employees within Toledo must, upon request, provide the pay scale for a position to an applicant who has received a conditional offer of employment.
All employers must:
Employers with 15 or more employees must, in each job posting for each job opening, disclose the wage scale or salary range and a general description of all benefits and other compensation.
Upon request of an employee offered an internal transfer to a new position or promotion, the employer must provide the wage scale or salary range for the employee's new position.
Understand the concepts, laws and expectations.
We get it – not everyone’s compensation structure is ready for prime time. Before you publicly reveal pay or pay ranges, you may need to consult counsel and conduct a pay audit with pre-defined goals. That way you can determine if you’re paying people at market value and address potential pay inequality.
ADP’s people analytics can help you quantify pay gaps by gender, race and ethnicity, and estimate the costs to close them. Included benchmark data allows you to compare compensation by industry or geographic region and establish competitive pay ranges.
Make more informed, equitable decisions about compensation while minimizing the need for HR assistance. With ADP’s compensation management, you’ll have instant access to modeling tools, interactive worksheets and data, including pre-defined guidelines, salary ranges and more. You can even make ad hoc changes to compensation and effective dates via a self-service tool.
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