Tracking the Latest Pay Transparency Trends: 5 Compliance Tips for Employers The federal government recently made headlines by rolling back a slew of workplace obligations, but employers should be prepared for heightened requirements at the state and local level. Indeed, blue states have been upping their game this year in resistance to the Republican trifecta in the White House, Senate, and House – and pay transparency will continue to be one of the hottest topics. This trend has already impacted many businesses in various locations across the country, and we think more employers will be grappling with new compliance obligations in the near future. Here’s what you need to know about pay transparency laws and five tips for compliance. 1. Keep Up with the Patchwork of New State Laws In addition to rules on equal pay for equal work, many states are now requiring employers to disclose salary ranges in job listings and for promotional opportunities. Pay transparency affects all aspects of workplace relationships – including hiring, recruitment, and retention efforts; supervision and leadership; and compensation and benefits. Here are the main laws on this topic that may impact your business so far: • Colorado was the first state to enact a pay transparency law in 2021 and other states rapidly followed suit, including California, Connecticut, Hawaii, Illinois, Maryland, Minnesota, Nevada, New York, Rhode Island, Washington, and Washington, D.C. • Many more states have joined the trend, including New Jersey, Massachusetts, and Vermont. • You should also note that some cities have their own requirements, including: o New York City, Ithaca, and Westchester County, NY; o Jersey City, NJ; and o Cincinnati, Columbus, and Toledo, Ohio. Many of these laws have already taken effect or take effect soon, so you should spend some time now reviewing the rules in your locations to ensure compliance. 2. Understand Your Key Obligations Multistate compliance with these laws is complicated, particularly since the details vary, including the applicable employer size and whether the rules apply to remote jobs. Although you’ll need to review the specific requirements of each law that applies to your locations, here are some common themes among pay transparency laws: • Employers need to provide wage ranges in job postings. • Set your wage ranges in good faith. • You may not retaliate against applicants or current employees for requesting a position’s wage range. • You may need to comply with certain recordkeeping requirements. • Potential penalties may apply if the rules are not followed. Note that some locations require disclosures about benefits offerings and other types of compensation, like bonuses and commissions. Some also require pay data reporting. For example, most employers with 100 or more employees in Massachusetts must annually file an equal employment opportunity (EEO)
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