EMPLOYMENT LAW NEWS
Pay Transparency Laws by State
By GovDocs
Updated October 2024
As with most aspects of employment law, each jurisdiction handles pay transparency laws differently.
Latest pay transparency news in 2024
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What are pay transparency laws?
Pay transparency laws are regulations that require employers to disclose information about employee compensation, either to the employees themselves or to the public. The specific requirements of these laws can vary depending on the jurisdiction, but they generally aim to promote fairness and reduce pay disparities based on factors like gender, race, and ethnicity.
These laws require employers to be more, well, transparent with salary ranges and benefits. Depending on the jurisdiction, these laws require employers to:
- Provide applicants the salary range for a posted position at a specified point during the hiring process
- Provide employees salary range upon request, when changing jobs, or upon hire
- Include salary range in job postings
Many states have passed their own pay transparency laws, which may require employers to disclose salary ranges for open positions, prohibit retaliation against employees who discuss their pay with colleagues, or require employers to report pay data to government agencies. As workers and lawmakers continue to push for enhanced employee rights, pay transparency laws are becoming more common.
Recent Updates:
- Massachusetts Pay Transparency Law
- Vermont Pay Transparency Law
- Minnesota Pay Transparency Law
- Maryland Pay Transparency Law
Want to learn more? View our pay transparency infographic.
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Pay Transparency Laws: Effective Dates
Below is an at-a-glance list of the locations and corresponding effective dates that require disclosure of pay range under certain circumstances. Each law is different, so employers should review each specific jurisdiction’s requirements to ensure compliance:
- California – effective Jan. 1, 2023
- Colorado – effective Jan. 1, 2021
- Connecticut – effective Oct. 1, 2021
- Maryland – effective Oct. 1, 2020
- Nevada – effective Oct. 1, 2021
- Jersey City, N.J. – effective April 13, 2022
- Ithaca, N.Y. – effective Sept. 1, 2022
- New York City – effective Nov. 1, 2022
- Westchester County, N.Y. – effective Nov. 6, 2022
- Cincinnati – effective March 13, 2020
- Toledo, Ohio – effective June 25, 2020
- Rhode Island – effective Jan. 1, 2023
- Washington – effective Jan. 1, 2023
As of this writing, several jurisdictions in the U.S. have some form of a pay transparency law. But more could be on the horizon.
Of course, as with all aspects of employment law, each jurisdiction handles these requirements differently.
Starting at a high level, some states have laws that require employers to disclose the pay range for a position if the applicant asks for it:
- California (California pay transparency law update)
- Colorado
- Connecticut
- Maryland
- Nevada
- Rhode Island
Even among these states, there is some variation in how they implement their pay transparency laws.
Related: Ban the Box – Updates and State Laws
Salary History Bans in the United States
Related to pay transparency laws are salary history bans.
These laws preclude employers from relying on pay history to set compensation, part of the growing employment law sector related to the #MeToo movement. Employers can usually ask for pay expectations but not actual pay history.
What states have salary history bans?
States, or jurisdictions within them, that have salary history bans include:
- Alabama
- California (and San Francisco)
- Colorado
- Connecticut
- Delaware
- Hawaii
- Illinois
- Maine
- Maryland
- Massachusetts
- Missouri
- Nevada
- New Jersey
- New York State
- Ohio (only Toledo and Cincinnati)
- Oregon
- Pennsylvania (Philadelphia only)
- Rhode Island
- Vermont
- Washington
The list above is for private employers There are several other jurisdictions that have similar laws for government employers.
Conclusion
There are several jurisdictions in the U.S. that have considered pay transparency laws of late, including:
- Massachusetts
- South Carolina
- Tennessee
- Washington, D.C.
And California has a draft bill that would mirror much of Colorado’s pay transparency law.
Plus, a competitive job market could spur companies to unilaterally opt to start including pay ranges with job postings, though there is some concern that it could create issues with existing employees who may not earn as much even though they hold the same position.
Still, employers with locations in the jurisdictions listed above should review their hiring practices to ensure they align with the law.
This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.
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