Help Wanted: What Employers Need to Know About Pay Transparency Requirements in Job Postings | The National Law Review

Pay equity has been a topic of discussion in many organizations over the past few years. To move organizations towards greater pay equity practices, many states and localities have implemented legislation focused on mandating compensation transparency in job advertisements. For example, effective 1 November 2022, employers in New York City (with at least four employees) must include a good faith salary range for every advertised job, promotion, and transfer opportunity. The disclosure must contain the “minimum and maximum annual salary or hourly wage and all prospective applicants, including internal applicants, who are entitled to receive the disclosure when the job is posted.” California has a law that goes into effect on 1 January 2023, where employers with 15 or more employees are required to include a pay scale in job postings. These are just a few of the growing number of state and local laws implementing pay transparency requirements for job applicants. It should be noted that many of the laws apply even if an employer does not have a physical location in the jurisdiction, but where a worker could perform the job in the regulated location. This subtle distinction has several implications, especially as more organizations hire remote workers. This article provides an overview of the jurisdictions that have implemented wage transparency laws and summarizes the requirements of each jurisdiction.