New Pay Transparency Laws Pose New Requirements for Job Postings, Recruiting and Workplace Disclosure and Reporting: Part 1 of 4

While the Beatles claimed it couldn’t buy you love, and Pink Floyd claimed it was a crime, few would argue with Liza Minnelli or Method Man that, indeed, the world revolves around it. From ABBA to the water cooler, our discussions often start, involve, and end with the topic of money, money, money.

Although pay talk and transparency has always been prevalent in unionized and public sector workplaces, the continued focus on pay equity has led a growing number of states and localities to enact laws prohibiting employers from asking for candidate salary history while requiring employers to:

• disclose salary ranges in job postings,
• share position pay information with candidates and employees,
• notify employees of their right to discuss pay with coworkers, and
• even file annual pay data reports with government agencies.

And, it is not just employers with an office or other physical presence in these jurisdictions who need to be compliant with these laws. Employers recruiting individuals who may work remotely from these jurisdictions need to know and comply with these laws too. With the continued trend of employing remote workers outside of the jurisdiction where the employer typically does business, keeping abreast of these developments can be challenging.

The chart below depicts the some of the jurisdictions in which these laws have been enacted thus far.

* These states either reserve the right to impose reporting obligations or tie them to enforcement provisions in case of violations. 

This chart is not an all-inclusive list of all jurisdictions with such laws nor an exhaustive list of the requirements and prohibitions. For purposes of this summary, the chart also generalizes provisions with an emphasis on their effect rather their specific wording. With the continued focus on achieving pay equity, more jurisdictions can be expected to enact pay transparency laws.  Legislation currently is pending in a number of other jurisdictions.

In a series of Alerts that will follow, we will focus on:

• Required Disclosures and Prohibited Inquiries on Job Postings and During the Recruiting Process (Alert 2)
• Required Disclosures to Employees and Pay Data Reporting (Alert 3)
• Employee Rights to Discuss Pay Information and Laws Against Pay Confidentiality Polices and Agreements (Alert 4)

In each Alert, we will cover what employers are covered by the jurisdiction’s law, what the law requires or prohibits, and practical guidance and best practices for complying with these requirements. Please stay tuned…