Pay Transparency for Employers: Clear as Mud

Pay transparency is no longer just a trend. It is quickly becoming a workplace expectation. Over the past few years, a growing number of states have enacted laws requiring employers to share compensation information in job postings, during the hiring process, or with employees upon request. 

What’s Changing? 

Pay transparency laws continue to expand, and requirements vary by jurisdiction. While the details differ from state to state, these laws often require employers to take one or more of the following steps: 

• Include a salary range in job postings 

• Provide a salary range to applicants during the hiring process 

• Share compensation ranges with current employees upon request or when promotional opportunities become available 

What About Remote Job Postings? 

We frequently receive questions from clients about how pay transparency laws apply to remote job postings. An employer may believe a posting is compliant because it meets the requirements of the state where the company is headquartered. For remote roles, the analysis often extends beyond the state where the company is headquartered. Pay transparency laws may apply in the state where an applicant or employee resides.  

If a job posting is visible to applicants in a state with pay transparency requirements and those applicants are eligible to apply, the employer may still face compliance risk. 

What is the Takeaway? 

There are several proactive steps your organization can take now to stay ahead of these evolving requirements:  

1. Establish clearly defined compensation bands for all positions 

1. Evaluate your compensation structure to ensure compensation bands are applied consistently 

1. Review job posting templates to confirm salary ranges are included and aligned with established compensation bands 

1. Train your HR professionals and hiring managers on when pay range information must be shared with candidates or employees 

1. Monitor developments in states where you hire or may hire, including for remote positions  

Pay transparency requirements are likely to continue expanding. Taking a proactive approach now can help position your organization to navigate this evolving legal landscape. 

We Can Help. 

Our team regularly works with employers to review hiring practices and establish compensation structures that reduce risk and maintain consistency across the workforce. Three services we offer that can help your organization are: 

• Full Service Pay Equity Audit: A thorough evaluation of your current pay scale, grades, ranges and differentials to proactively identify any areas of risk.  Fixed fee too!

• Employment Counsel On-Call Triage Service: Your organization can have direct access to our team of employment attorneys for a fixed monthly fee so you can stay up to date on pay transparency developments as they arise.  

• Multi-State Surveys on Pay Transparency Laws: We can quickly update your organization on compliance advice in any state you need. 

Don’t waste time wondering if you are in compliance. We can help. Contact us.