As we wind up 2022 and head into 2023, all eyes are on salary and pay range requirements in job postings. Where these laws apply, what they require, and when they go into effect has been top-of-mind for US employers in 2022.
Here’s what employers need to know now as they navigate the patchwork of existing laws and prepare for 2023.
Checklist of states, counties and municipalities requiring salary and pay range disclosures in job postings
- California is the latest state to require employers to include pay ranges in job postings. (See our blog, here.) California’s newly enacted pay reporting legislation joins the nationwide push for pay transparency in employment and requires California employers with 15 or more employees to include the salary or hourly wage range of positions in job postings (but not bonus, incentive compensation or benefit information). The California law also requires employers with 100 or more employees to provide additional detail in annual pay data reports already mandated under California law effective May 10, 2023. The California law takes effect on January 1, 2023.
- Colorado requires employers to disclose the pay, or pay range, of a position in the job posting itself, along with a description of incentive compensation (such as bonus, commissions, etc.) and benefits. The compensation posting requirements do not apply to either (1) jobs to be performed entirely outside Colorado, or (2) postings made entirely outside Colorado (i.e., newspaper job postings). The Colorado law took effect January 1, 2021. (For more, see our blog here.)
- New York State’s legislation is still pending. The proposed legislation will require salary range disclosures in job postings (see our blog here). Business groups have urged Governor Hochul to tweak the bill before signing it to preempt local pay transparency ordinances (with the exception of New York City’s ordinance) to avoid the patchwork of pay equity laws around the state. If the governor signs the bill, it will take effect 270 days after signature.
- Washington’s amendment to its Equal Pay and Opportunity Act (see our blog, here) will require disclosure of wage, salary and benefit information in job postings. However, it leaves unchanged a prior requirement that employers provide the same information to employees offered new positions or promotions within the company only when requested. The Washington amendments will go into effect on January 1, 2023.
- New York City’s salary disclosure law and amendment (see our blog here) requires employers to provide the minimum and maximum salary range (but not bonus, incentive compensation or benefit information) that the employer in good faith believes at the time of posting it would pay for an advertised job, promotion or transfer opportunity for any position located within New York City (or that can be performed in New York City in the case of remote roles). As long as the employer has four or more employees with at least one working in New York City, the law applies. The New York City law became effective on November 1, 2022.
- Westchester County, New York passed its own pay transparency law which requires employers to include the minimum and maximum salaries for jobs that can or will be performed in Westchester County (in whole or in part) in job advertisements, including for remote positions. However, employers are not required to include salary ranges in job postings only generally indicating an employer is accepting applications without referencing particular positions. The Westchester County law became effective on November 6, 2022.
- Ithaca, New York enacted a law making it an unlawful discriminatory practice for an employment agency, employer, employee or agent to advertise an opportunity for employment-including a job, promotion or transfer opportunity-without stating the minimum and maximum hourly or salary compensation for the position in the advertisement. The law applies to employers with four or more employees and applies to all positions for which the standard work location is in the City of Ithaca. The Ithaca law became effective on September 1, 2022. (For more, see City of Ithaca Pay Transparency Law FAQs).
- Jersey City, New Jersey’s pay transparency law applies to employers employing five or more employees with a principal place of business in Jersey City. The law requires employers who provide notice of employment opportunities in print or digital media circulating within Jersey City to include a minimum and maximum “good faith” salary or wage range (including benefits) in job advertisements in the City. The Jersey City law became effective on June 15, 2022.
On the horizon
We expect other jurisdictions to follow suit in requiring salary and pay range disclosures in job postings. Legislation was introduced (but did not advance) in legislative sessions in several jurisdictions earlier this year–and could see light of day in 2023. For instance, US House Bill 6850 was introduced early in 2022, and would have required employers to disclose wage or salary ranges and other forms of compensation reasonably expected to be offered in external or internal job postings. Kentucky and Massachusetts also both introduced legislation requiring pay ranges in job postings in their last legislative sessions. In addition, several states already require the disclosure of such information to applicants and/or employees upon request, and other states may follow suit.
Quick guide of additional steps employers should take now to prepare for this trend
As this trend continues, employers should consult with counsel and:
- Determine which jurisdictions have salary and pay range disclosure laws effecting their company’s job postings–and whether they have to include pay ranges in postings for positions outside of those jurisdictions, including remote positions,
- Determine what pay range information is required to be included in job postings,
- Implement best practices for choosing pay ranges for posting, and
- Plan how to communicate any changes to their workforce.