The movement for salary transparency
Easy Money - The movement for salary transparency has been gaining momentum: In 2021, Colorado implemented legislation that requires companies to include salary ranges in job advertisements. New York City also instituted a similar law in November 2022. Additionally, certain states and cities have established rules requiring employers to disclose the salary range for a position during the hiring process.
three states that are about to enact legislation mandating salary transparency
In the coming year, three states will enact laws that mandate salary transparency, and similar legislation is being considered by various state and city governments across the United States.
Here is an overview of the new laws set to take effect on January 1, 2023:
California: Under the state's amended labor code, employers with 15 or more employees will be required to include salary ranges in job postings on the company's hiring page or on third-party websites like Glassdoor or LinkedIn. Companies must also provide current employees with the pay scale for their current position upon request. The law will apply to nearly 200,000 employers in California, including major companies like Apple, Disney, Google, and Meta.
Washington: The state's Equal Pay and Opportunities Act requires employers with 15 or more employees to disclose the pay range for a job in any digital or printed ad on the company's hiring board or on a third-party site. The law applies to companies that have at least one employee based in Washington, conduct business in the state, or are recruiting for positions that could be filled remotely by someone in the state. Job listings will also be required to include a list of benefits offered to new hires, including health care and retirement benefits, paid time off, and any other benefits that must be reported for federal tax purposes.
Rhode Island: The state's amended Pay Equity Act does not require employers to post pay ranges on job ads, but it does mandate that businesses provide the range to job applicants upon request. Employers must disclose the minimum and maximum range on offer before discussing compensation with the candidate, when the candidate is officially hired, and if the employee moves into a new position. Current employees may also request the salary range for their position.
In addition to these laws, similar legislation is expected to take effect in New York state in September 2023, and bills are pending in Massachusetts and South Carolina. By 2023, it is estimated that approximately one in four workers will be covered by a state or local law that requires businesses to disclose salary ranges. These laws are expected to help close wage gaps based on factors such as gender, race, and LGBTQ identity.
- Salary transparency laws
- Pay range legislation
- Employment law
- Wages and compensation
- Employee rights
- Fair pay
- Workplace equality
- Salary disclosure
- Hiring and recruitment
- Business compliance