Pay transparency laws in the U.S. continue to be passed. The effective dates by state and jurisdiction vary.
· 2019: Cincinnati, Ohio
· 2020: Maryland, Toledo, Ohio
· 2021: Colorado, Connecticut, Nevada
· 2022: Jersey City, N.J., Ithica, N.Y., New York City, Westchester County, N.Y.
· 2023: Albany, N.Y., California, New York, Rhode Island, Washington
· 2024: Hawaii, Washington D.C.
· 2025: Illinois, Massachusetts, Minnesota, Vermont
Places that are considering pay transparency laws include but are not limited to Alaska, Kentucky, Maine, Michigan, Missouri, Montana, New Jersey, Oregon, West Virginia, and Virginia.
What employers do these laws apply to?
· In some states the law applies to all employers with at least one employee working there. In other states the law applies to employers with 15 or more employees. And yet others have 25 or 50 employees as the threshold.
What it takes for employers to comply varies by location:
· Some states have laws that require employers to disclose the pay range for a position if the applicant asks for it. Some states also need to share the pay range with employees when asked.
· Some states require the pay range to be shared in job postings.
· Some states have salary history bans.
· Some states require promotional opportunities to be posted.
· Some states require pay data reporting.
How much do violations cost an employer?
· Up to $3,000 per violation in one state.
· Up to $5,000 per violation in one state.
· Up to $10,000 per violation in two states.
Two key questions for employers:
· Is your commitment to pay transparency only going to be focused on compliance? Or are you developing and implementing a comprehensive strategy that integrates pay transparency into your daily operations?
· Are you ready for the questions about your organization’s pay practices that are inevitable with increased pay transparency?
If this gremlin has you up at night thinking about all you need to get done, let’s talk.
Source: Govdocs, Ogletree Deakins, Littler, Syndio, Berkshire Associates
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