Pay Equity Statutes
June 7, 2022
One of the new frontiers in employment law, is the expansion of pay transparency laws, designed to combat wage disparity. Currently, California, Colorado, Connecticut, Maryland, Nevada, Rhode Island and Washington require employers to provide a position’s wage or salary information to applicants, and, in some cases, to employees. These statutes can often reach beyond the traditional definition of employers within that state as well.
Furthermore, employers covered by the Colorado Equal Pay for Equal Work Act (Part 2 (EPEWA) for instance) are required to post wage and benefit information. This is for all covered promotional opportunities and job openings (including remote jobs that can be performed anywhere), unless that work is specifically tied to a non-Colorado worksite.
Subsequently, the New York City Council passed amendments to the city’s human rights law last December. When it takes effect in November, it will require employers disclose minimum and maximum salaries for all advertised jobs, promotions or transfer opportunities located in the city. The state of Washington’s law expands in January, 2023 to proactively disclose this information.
Applying This To All
Even if you’re not currently an employer in these 7 states (or New York City), laws promoting pay equity have been taking shape for the better part of the last half decade. Many are starting with bans on asking salary history (now totaling 21 state-wide bans, and many more local bans) and can affect you:
- New York City’s guidance on the newly passed amendments suggest that if you interview a candidate outside the city for a position that may be done remotely at home, you may run afoul of the law if that candidate is a resident of the city.
- California’s pay data reporting obligation law requires employers with 100 or more employees to provide the number of employees by race, ethnicity, and sex in each of the 10 EEO-1 Job Categories. This applies to employers of 100 or more regardless of how many are in California, even if it’s just one.
Talk to CIP about how we can help navigate this challenging patchwork of statutes, proactively position your organization for compliance, develop equitable pay practices that are designed to drive performance, and develop HR best practices.
Read Other Key Posts: