Pay Equity / Pay Transparency

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.  

 

State / Jurisdiction:

 

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

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. 

 

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 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. 

 

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.

 

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, 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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