Israeli companies with U.S.-based employees, take note: a number of recently enacted U.S. laws require that job postings/advertisements include the minimum and maximum compensation rate for the posted position.
New York City implemented such a law effective Nov. 1, 2022.
- Under the New York City law, the requirement to post a position’s compensation range extends to positions that can be performedremotely from New York City, and includes postings that apply to the promotion or transfer of existing company employees.
- The law does not require the posting of information regarding other forms of compensation (e.g., health/life insurance, paid time off, retirement plan, severance pay, overtime pay, commission, bonus, or equity).
- The new requirement will apply to all companies that have four or more workers (including business owners, employees and independent contractors), with at least one such worker already working from New York City.
- A company that does not comply with the law may be required to pay a monetary penalty that can range up to $250,000 per violation for repeated or uncured violations and engage in other forms of affirmative relief (e.g., amending advertisements and postings, conducting training, providing notices of rights to employees or applicants, etc.).
Laws regarding the disclosure of compensation rates have also been enacted and/or are pending in California, Colorado, Connecticut, Maryland, Nevada, New York State, Rhode Island, and Washington and/or certain U.S. cities.