Pay Equity / Pay Transparency

Updated November 26, 2024 17:48

Pay Transparency Laws Span the Nation

In recent years, over 40 states have passed varying forms of pay equity laws that typically require employers to publish minimum and maximum pay rates for positions advertised in their job postings. The laws often include provisions that prohibit employers from inquiring about salary history during the application and hiring process. The purpose of these pay equity laws is to provide more transparency for the candidate about compensation for the position and to reduce gender and race pay gaps by helping job applicants negotiate fair pay. There are nuances to most of these state laws so it's important to consult with your legal and compliance team. For specific examples of varying state requirements, refer to this National Law Review article.

Federal / All

DOL Proposes Regulations to Require Federal Contractors to Publish Salaries in Job Ads

Employers who are federal contractors and subject to OFCCP may soon be required to disclose compensation information in job postings. Employers would also be prohibited from inquiring about candidates' salary history under the Pay Equity and Transparency in Federal Contracting rule. This proposal remains open to public comments until April 1, 2024.

Canada

British Columbia Pay Transparency Report

The British Columbia Pay Transparency Act is intended to help close the gender pay gap and address systemic discrimination, and it includes a reporting requirement for employers. Avionté has developed a report to help our Canadian customers to be compliant with this requirement. More information about this file that can be uploaded directly into the Pay Transparency Reporting Tool is available in Avionté's Knowledge Base article.

In British Columbia, employers are required to complete and post a pay transparency report by November 1 of each year. This requirement is being implemented through a phased approach based on employer size. The upcoming deadlines are as follows:

By November 1, 2025: all employers with 300 employees or more
By November 1, 2026: all employers with 50 employees or more

Employers must have a Business BCeID account to use the Pay Transparency Reporting Tool. Guidance materials are available to help employers meet their reporting obligations.

Canada Introduces Employment Equity Data Tool

Canada has launched an employment equity data visualization tool to display data on representation rates and pay gaps experienced by protected groups identified under the Employment Equity Act. This new interactive tool provides data on hiring activities and applicants to staffing processes for the designated equity groups. For more information, refer to the Littler article on this topic.

Colorado

Colorado Leave Law /Pay Equity/ Harassment Protections

Employers should become familiar with the state’s leave laws, including the Colorado Family & Medical Leave Insurance program and the Colorado Healthy Families and Workplaces Act. As of 2024, there are extensive changes under the Equal Pay for Equal Work Act with respect to posting job opportunities and related notice requirements. The Job Application Fairness Act will be effective July 1, 2024, and it prohibits employers from asking questions that may reveal an applicant’s age. Employers should also be aware of the expanded definition of workplace harassment under the Colorado Protecting Opportunities and Workers Rights Act, which includes other types of unacceptable behavior.

Colorado Prohibits Age-Related Information Requests

The Job Application Fairness Act will be effective July 1, 2024, and it prohibits employers from asking questions that may reveal an applicant’s age. Colorado employers will also have to avoid questions in the application and interview process that could reveal the applicant's age. Beyond asking directly for date of birth, questions about dates of school attendance and graduation dates could reveal information about an applicant's age. If employers request school transcripts as part of the application, they should notify applicants that they may redact age-related information prior to submission. This new requirement is part of the current Equal Pay for Equal Work Act (EPEW). See JD Supra article.

Hawaii

Hawaii's New Pay Transparency Law in Effect

Effective January 1, 2024, Hawaii has joined the list of states that has passed pay transparency legislation in an effort to reduce discrimination against a newly expanded group of protected individuals. Hawaii has prohibited questions about previous salary information since 2019, and the new pay transparency law (Act 203) requires employers to post hourly compensation rates or salary ranges in external job postings and advertisements. The Hawaii Civil Rights Commission has published guidance for employers to reference.

Illinois

Illinois Equal Pay Registration Certificate Due Soon

Among other requirements, the newly amended portion (SB1480) of the Illinois Equal Pay Act, mandates that application materials for the EPRC are submitted to the State of Illinois by March 24, 2024. To help support our clients be compliant, Avionté is updating this report to include necessary data for the EPRC registration process. For more information, refer to the Illinois Department of Labor website.

Note that in addition to the Illinois Equal Pay Act changes, SB1480 also amends the Illinois Business Corporation Act (IBCA) and the Illinois Human Rights Act. The law's impact to the IBCA requires employers to report EEO-1 and pay data to the Secretary of State. The amendments to the IHRA prohibit employers' use of conviction records as the basis for employment and workplace decisions.

Massachusetts

Massachusetts Passes Pay Transparency Law

The Massachusetts House and Senate passed a bill on July 24, 2024 that will require employers in the Commonwealth to disclose salary range information on job postings as of July 24, 2025. Governor Healey is expected to sign the bill into law. The legislation would also require private employers with 100 or more employees to submit aggregate EEO and pay data. These reports must be submitted to the Secretary of the Commonwealth by February 1, 2025 for reporting by the Massachusetts Department of Labor. Refer to this Seyfarth Shaw article for more details.

Massachusetts to Implement New Pay Transparency Law

Pending Governor Maura Healey's signature, new laws in the Commonwealth of Massachusetts (H.4109 and S.2468) will require employers to disclose annual salary or hourly wage ranges in their job postings. These laws also include wage data reporting requirements. Employers with 100 or more full-time employees will have to report annually on aggregate EEO demographics. Penalties for second violations are $500, increasing to $1,000 for the third, and can range between $7,500 - $25,000 for subsequent violations.

With the passing of this legislation, Massachusetts will join many states with similar laws requiring the disclosure of salary ranges in advertisements for job openings. For more information, refer to these articles in the National Law Review and on the Seyfarth Shaw LLP website.

Maryland

Maryland to Require Pay Range Disclosures

While Maryland had existing requirements that restricted employers from inquiring about applicant wage history, Governor Moore recently signed Senate Bill 0525, that requires employers to post the wage range, other compensation information, and a general description of benefits within their job postings. This amendment will be effective October 1, 2024. For details on this pay transparency law, refer to this article by Greenberg Traurig LLP.

Minnesota

Minnesota Prohibits Pay History Inquiries

Since January 1, 2024, Minnesota employers may not ask about or consider an applicant’s past or current pay during the hiring process, with limited exceptions. Some nuances of the new Minnesota Human Rights Act provision are that employers may provide pay and benefits information applicable to a job and may ask applicants about their related expectations or requests. Employers should review their job applications and interview questions to ensure they don't include any requests for pay-related information.

New Jersey

New Jersey Governor Signs Pay Transparency Law

With the passage of New Jersey's pay transparency law, there are now over a dozen states with legislation to help promote pay equity in the workplace. Effective June 1, 2025, Senate Bill S2310 will require employers in New Jersey to disclose wage or salary ranges, as well as benefits information, within their job postings. New Jersey City has a similar law currently in effect. The new statewide mandate will apply broadly to employers who operate in New Jersey and/or accept applications for employment within the state, and the law includes monetary penalties for non-compliance.

New Jersey Pay Transparency Law Pending Approval

The New Jersey Senate has passed Senate Bill 2310, which was introduced in January, so the legislation is now in the hands of the Assembly. If passed by the House and signed by the Governor, this pay transparency law would require disclosure of compensation and certain benefits info in job listings as well as in job descriptions for promotional opportunities.

Notably, the Garden State has had a salary history inquiry ban in effect since 1/1/2020 under the DBA Equal Pay Act, which was the most expansive of its kind in the US when enacted in 2018.

Jersey City already has a pay transparency law in place. Jersey City's Ordinance 148-4.1 (and amended by Ordinance 22-045) requires every job posting to list the minimum and maximum base salary or hourly wage, in addition to any job benefits being offered for the position. Unlike some municipal laws, Jersey City's law applies to employees who are direct hires and also to independent contractors.

New Jersey's Equal Pay for Temporary Workers Bill of Rights Survives

In a recent ruling by New Jersey's Third Circuit, the court affirmed the denial of an attempt to block the law that includes equal pay and pay transparency obligations for temporary workers. The staffing industry group and other business groups that challenged the TWBR are still seeking an injunction based on a new claim against the New Jersey law (Bill A1474) with arguments set to be heard on July 29, 2024. Avionté will continue to monitor for updates.

Ohio

Columbus, Ohio Bans Inquiries about Salary History

Effective March 1, 2024, employers will no longer be allowed to ask candidates about their compensation history. Unlike similar laws for Ohio cities of Toledo and Cincinnati, the Columbus ordinance will not require employers to publish the pay scale for positions until after a job offer.

Washington D.C.

Washington, DC Amends Wage Transparency Act

Washington, D.C. recently published DC Act 25-367 to amend its existing D.C. Wage Transparency Act. The amendment requires the disclosure of pay ranges in all job postings and advertisements, and health care benefits must be disclosed prior to interviewing candidates. In addition, the amendment prohibits the request of pay history from a candidate, and a notice of employees' rights must be posted. The DC Act Amendment takes effect June 30, 2024. For details on these pay transparency laws, refer to this article by Greenberg Traurig LLP.

Washington, D.C. to Require Salary Transparency

Mayor Bowser signed D.C.'s Wage Transparency Omnibus Amendment, which would prohibit employers from inquiring about an applicant's salary history. Secondly, it requires employers to disclose salary ranges and healthcare benefits information for advertised positions. This new law is currently under congressional review and will take effect June 30, 2024 if approved. For more information, refer to this National Law Review article.

Washington, D.C. Employers to Disclose Pay Ranges

According to the newly signed Wage Transparency Law to be effective June 30, 2024, employers in the District of Columbia will be required to include pay rates within job listings and job descriptions. Previous wage history may not be requested of the candidate. Prior to an interview, District employers must notify candidates of the existence of healthcare benefits, and notices of such must be posted according to the law. Documents cited by Bloomberg Law include federal labor statistics that indicate D.C. has one of the worst wage gaps in the country for workers of color.

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