Developments in Pay Transparency
June 16, 2022 • W. Baker Gerwig, IV
Category: Legal Updates
New York will likely become the latest state to enact a “pay transparency” law, which, if passed as written, would require New York employers with four or more employees to include wage scales or salary ranges on any job postings for positions within the state. The bill, Senate Bill S9427, passed the New York State Legislature on June 3, 2022, and now awaits the approval of Governor Kathy Hochul. Senate Bill S9427 follows the passage of a similar New York City law that is set to take effect on November 1, 2022.
If the law is passed, New York will join California, Colorado, Connecticut, Maryland, Nevada, Rhode Island, and Washington in requiring that employers disclose wage scales and salary ranges to job applicants. But not every state’s pay transparency law operates in the same way. Currently, most states with pay transparency laws only require that employers provide a payment range at later stages of the application process and at the request of the applicant. However, in Colorado and, beginning on January 1, 2023, in Washington, employers must provide a wage scale or salary range along with any job posting. New York would adopt this more stringent policy, and will likely not be the last state to do so: the California legislature is currently considering amendments to its pay transparency law that would enact the same requirements.
Whether or not a business is located within one of the listed states, it is likely that these laws have implications for its job postings. With the massive increase in remote work opportunities, more and more employers find themselves advertising for positions in all 50 states. Businesses that advertise to potential employees in the more stringent group of states must comply with that state’s pay transparency laws. After Colorado became the first state to adopt the more stringent pay transparency policy, some businesses sought to avoid the issue altogether by excluding Colorado employees from the applicant pool. However, it appears that this reaction will not be feasible for long. Most of the pay transparency laws discussed in this article were passed in the last two years, and the new laws being discussed in other states are trending toward the more stringent policy. Stokes Wagner attorneys would be happy to assist employers who wish to ensure that their job ads and hiring policies comply with relevant pay transparency laws.
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THIS DOCUMENT PROVIDES A GENERAL SUMMARY AND IS FOR INFORMATIONAL/EDUCATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO BE COMPREHENSIVE, NOR DOES IT CONSTITUTE LEGAL ADVICE. PLEASE CONSULT WITH COUNSEL BEFORE TAKING OR REFRAINING FROM TAKING ANY ACTION.
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