With 2023 seeing a growth in pay transparency laws, it has become increasingly important for all parties involved in the hiring process to be aware of what it is and how it will affect their efforts. Pay transparency refers to hiring parties being open about their salary and other forms of compensation for current and prospective employees. Click here to learn about the currently enacted pay transparency laws by state.
While the legal adoption of this process has helped create more open conversations about pay equity and equality in the workplace, it has also changed how individual companies, recruiters, hiring managers, and hiring websites like Indeed will be advertising going forward. Continue reading to learn about the states with pay transparency laws and the new best practices for job postings, even if you live in a state that has not yet enacted these laws.
California: SB 1162
- Effective January 1st, 2023
- All job postings must include salary range, include remote positions
- Applies to employers with 15 or more employees, with at least 1 working in California
- Employers must disclose position’s salary range to current employees upon request
- Applies to employers with 1 or more employees
Colorado: Equal Pay for Equal Work Act (EPEW Act)
- Effective January 1st, 2021
- All job posting must include a salary range, description of all possible forms of compensation that may be awarded, and a general description of all benefits
- Applies to employers with at least 1 employee working in Colorado
Connecticut: HB 6380
- Effective October 1st, 2021
- Wage ranges must be provided upon quest of applicant or prior to/at the time the applicant is made an offer of pay/compensation
- Applies to employers with at least 1 employee working in Connecticut
- Employees must be given their wage range upon hiring, changing position, or at the employee’s request
- Applies to employers with at least 1 employee working in Connecticut
Maryland: Equal Pay for Equal Work Pay (HB 123)
- Effective October 1st, 2020
- Employers must provide the wage range to job applicants upon request
- Applied to any employer who engages in business in Maryland
Nevada: SB 293
- Effective October 1st, 2021
- Potential employers must provide job candidates (who have completed an interview for the position) the salary/wage range for the role
- Applies to any employer in Nevada
- Employers must provide an employee with the salary/wage range if they have applied for a promotion or transfer, completed an interview for said change, and requested the salary/wage range for the role
- Applies to any employer in Nevada
New Jersey: No State Laws
- Jersey City: Jersey City Ordinate 22-026, Jersey City Ordinance 22-045
- Effective April 13th, 2022
- Employers must provide the salary/wage range and benefit descriptions for all job postings
- Employers with five or more employees within Jersey City
- Employers must provide employees with salary/wage range and benefit descriptions for any job transfer or promotion opportunity
- Employers with five or more employees within Jersey City
New York: S.9427-A/A.10477
- Effective September 17th, 2023
- Employers must disclose the salary/wage range and compensation range for any new job, promotion, or transfer opportunities/postings
- Applies to employers with 4 or more employees
- New York City: NYC Ordinance
- Effective November 1st, 2022
- Employers must disclose the salary/wage range and compensation range for any new job, promotion, or transfer opportunities/postings, including for roles that can be done remotely or in the field
- Applies to employers with 4 or more employees, with at least 1 in New York City
- Ithaca: Ithaca Ordinance
- Effective September 1st, 2022
- Employers must disclose the salary/wage range and compensation range for any new job, promotion, or transfer opportunities/postings, including for roles that can be done remotely or in the field
- Applies to employers with 4 or more employees
- Westchester County: Westchester County Local Law No. 119
- Effective November 6th, 2022
- Employers must disclose the salary/wage range and compensation range for any new job, promotion, or transfer opportunities/postings, including for roles that can be done remotely or in the field
- Applies to employers with 4 or more employees
Ohio: No State Laws
- Cincinnati: City of Cincinnati Ordinance
- Effective March 13th, 2020
- Employers must provide a salary/wage range when requested by candidates if a conditional offer of employment is made
- Applies to employers with more than 15 employees in Cincinnati
- Toledo: City of Toledo Ordinance
- Effective June 25th, 2020
- Employers must provide a salary/wage range when requested by candidates if a conditional offer of employment is made
- Applies to employers with more than 15 employees in Toledo
Rhode Island: S 0270A
- Effective January 1st, 2023
- Potential employers must disclose salary/wage range upon applicant request and before discussing compensation
- Applies to Rhode Island employers with 1 or more employee in the state of Rhode Island
- Employers must disclose salary/wage range to an employee when asked during the time they are employed as well as at the initial time of hire, during a position transfer, or promotion
- Applies to Rhode Island employers with 1 or more employee in the state of Rhode Island
Washington: Equal Pay and Opportunities Act
- Effective January 1st, 2023
- Potential employers must release information of salary/wage scale, benefits, and other forms of compensation in all job postings, even those that are remote
- Applies to employers with 15 or more employees, employers with 1 or more employee based in Washington, and employers who engage with/recruit from Washington
- Employers must provide the salary/wage scale upon employee request when the employee is offered an internal transfer, new position, or promotion.
- Applies to employers with 15 or more employees, employers with 1 or more employee based in Washington, and employers who engage with/recruit from Washington
Adjusting Hiring Practices:
Just because your state has not yet adopted these practices into law does not mean that you can relax just yet. When posting jobs that are open to attracting talent from all over the country, the job postings must abide by the pay transparency laws of the states it wishes to be seen in, even if the work will not be performed in that state. Stating that residents of states with these laws are not eligible for the role will not be an effective workaround either, as Colorado recently ensured.
The best way to stay prepared is to be ahead of the curve and adjust before it is necessary. Start implementing these practices to ensure that your job hunt can stay uninterrupted, no matter where you post it.
Provide a Salary/Hourly Wage Range
One of the core requirements of pay transparency laws is that the wages are on clear display for potential candidates. All job postings should include a range of the lowest possible pay to the highest. Include whether the role is salary, hourly, and would include other compensation, such as bonuses, but do not include those in your estimate of the pay scale. Doing so might lead qualified candidates expecting to be offered the pay on the highest end of the pay scale to feel lied to when learning that they would not have the proposed amount guaranteed.
Describe the Benefits
A general description of benefits is all that is necessary for this. Companies do not need to include the benefit plans or exact details, but they should include whether there is health, dental, and vision, additional compensation, paid time off, and other similar benefits.
Be Accurate
There is no reason to abide by these rules if the details will not be accurate. Job postings with massive, unrealistic pay scales, exaggerated compensation, or vague benefits will leave candidates feeling uneasy about the role, especially when the posting is compared to others that are accurate and detailed.
Standardize Your Job Posts
Not every state is requiring all of these elements, but standardizing your job postings to always fit the needs of the states with the highest requirements will keep you from being caught off guard later. It is better to be over-prepared than to find out that your jobs have been excluded from several states with qualified candidates.
If you are looking to hire but are unsure where to start or how to make the best case for your job opportunities with these laws, then connect with a recruiter here! Radius recruiters are familiar with these laws and ready to work alongside both you and them to find the candidates you need!