Have you ever been asked during an interview: "What is the salary range you are offering for a particular post"? How do you handle such a question? Do you think asking such a thing from an employer lowers the candidates’ chances of being hired? Well, it is not the case anymore, thanks to the salary transparency laws in the US!
Now, do you have any salary disclosure law being followed at your organization? If you are wondering why are salary transparency laws by state so important then you have come to the right place! Seeing the importance of such laws, it is crucial for everyone, employers and potential employees, to be aware of their responsibilities and rights.
Pay Transparency Laws in 2023
We will break down for you these rather complex pay transparency laws in 2023. As organizations are moving forward towards hiring the best of the talent out there, it has become imperative to help them see the organizations as good fits for them too! You cannot have a top-notch graduate working for you at a salary that is lower than the market rate. The new pay transparency federal and state laws are encouraging candidates and recruiters to discuss these things at some point during and even before the hiring process begins.
Sure it was taboo to discuss such things with potential and current employees in the past, but now the rights of employees also encircle the knowledge of the expected salary range for a post. Recently introduced pay transparency federal and state law will allow the candidates certain liberties of not being compelled to share their salary history with the recruiters while applying for new jobs. It will also prevent the violation of labor laws that happens due to inequity and discrimination against candidates on the basis of their salary history. Moreover, this pay transparency federal and state law will allow the promotion of a harmonious relationship between applicants and recruiters by having the recruiters state their salary ranges for the advertised posts.
New Salary Disclosure Laws in Job Postings
It’s a quite useful idea to implement New Salary Disclosure Laws in your organizations to satisfy the suitable candidates during the hiring process so they choose you too as you choose them! Many recruiters and HR managers are now encouraging the implementation of new salary disclosure laws even while creating job postings to attract only the relevant talent that is confident in applying for the job at the given pay range.
Implementing Salary Disclosure Policy in the HR
One of the most important reasons why implementing a salary disclosure policy for the recruiters in your company is that exceptional talent cannot be hired and retained if they do not know the expected salary for the vacancy before signing the contract. Such a salary disclosure law will create an air of confidence for the potential candidates and they would be more comfortable in stating their demands and seeing what you have to offer before signing a binding offer!
For you to be a recruiter who is a pro at hunting talent suitable for the organization, awareness of salary transparency laws by state is very important. You must learn what according to the states the new salary disclosure laws require!
New salary transparency laws by the state and cities are rather different but cater to one goal which is the standardization of pay ranges in all the state and privately owned institutes in the USA. These pay transparency laws in 2023 also ensure that employers are evaluating candidates as per their talent and capabilities instead of their previous salaries.
New York Salary Disclosure Laws
New York was among the first few states in the United States when it came to implementing laws catering to candidates applying for jobs. The state law is yet to be implemented in NYC while several city laws had been implemented earlier in the year 2022 covering similar grounds as the state law.
- As of September 2023, the New York salary disclosure laws by the state require companies to disclose the pay range for a specific vacancy at a particular point during the hiring process as well as in job postings.
- By law, candidates are also free to inquire about the minimum to maximum pay range for a post they are interviewing for.
- These salary transparency laws also encourage them to find out about the chances of promotion for the said post and the ranges of compensation with respect to promotions.
- Pay transparency laws by the state of New York exclude all remote positions and in order to be applicable, this law requires the jobs (for hiring of new employees or promotion/transfer of existing ones) to be carried out physically.
- It is noticeable that all the job postings (internal and/or external done via any channel) require the salary disclosure policy to be followed.
- Most importantly, employers cannot inquire about the previous salary of the candidates under any circumstances until or unless they themselves mention it to the employers.
Pay transparency law: California
- As per the pay transparency law by the state of California, employers must disclose the pay range of the post advertised for all kinds of vacancies being filled within the state of California.
- These pay transparency laws in 2023 cater to on-site as well as remote work opportunities alike!
Pay transparency law: Colorado
- Colorado has been following a pay transparency law since 2021 and it requires employers to advertise the open vacancies and promotions along with their pay package for the current employees.
Pay transparency law: Connecticut
- As per the pay transparency law by the state of Connecticut implemented in 2021, employers must disclose the pay range of advertised vacancies to the applicants and the current employees upon request.
Pay transparency law: Maryland
- The salary disclosure law in the state of Connecticut was implemented in 2020 and it urges employers to disclose the pay range of the vacancies advertised upon request by the candidates.
Pay transparency law: Nevada
- As per the pay transparency laws of the state of Nevada, employers must disclose the pay range of the advertised vacancies for hiring, promotion or transfers. This salary discourse law was implemented in the year 2021.
Pay transparency law: Rhode Island
- With effect from January 2023, the salary disclosure law in Rhode Island requires employers to disclose the pay range of an advertised position to the candidates and current employees upon request.
Pay transparency law: Washington
- The salary disclosure law in Washington came into effect in January 2023 and requires employers to include the pay range for the open vacancy in the job posting.
- The pay range has to be disclosed to the current as well as potential employees upon request.
- The pay transparency law further demands that employers must not conceal the pay range in case of a transfer being carried out internally.
Pay transparency law: Pennsylvania
- According to the pay transparency law by the state of Pennsylvania, employers must disclose the pay range of the advertised post in any medium.
- The new salary disclosure laws in Pennsylvania also require employers to not inquire about the current or previous salary of the candidates at other organizations until they choose to disclose it themselves.
- Similar pay transparency laws are being followed in other cities of the state.
Pay transparency laws: Massachusetts
- As per the pay transparency law by the state of Massachusetts, employers cannot inquire about the previous salary from the candidates until or unless they make an offer (with a pay package) to the candidate.
- This law is being followed across the state.
Pay transparency law: Georgia
- As per the pay transparency law by the state of Georgia, employers cannot choose to disqualify a candidate solely on the basis of their salary history.
- This law has been implemented in the city of Atlanta.
Pay transparency laws: Illinois
- As per the pay transparency law by the state of Illinois, employers are legally bound to not inquire about the salary history but must be open to discussing the expected compensation package with the candidates.
- This law is implemented across the state including Chicago.
Violation of salary disclosure laws by the state in 2023
Considering these laws have to be implemented, there are also penalties to be paid in case a city or state organization fails to follow them completely or repeats them without remedy. Although remedial measures are acceptable if made in due time, ill intentions towards a candidate or an employee without any remorse and repeated offense will lead to punishment of varying degrees! Depending on the jurisdiction, employers that violate the pay transparency laws can be subject to fines ranging from $500 to $10,000 per violation. Such penalty risks can increase depending on the number of violations and employees/potential employees involved. Employers in some states may be subject to civil liability and are opening themselves up to civil lawsuits. Some states even allow for additional civil penalties of up to 10 percent of the amount of damages found in a civil lawsuit.
Ultimately, failure to comply with pay transparency can be costly, so it is important to pay attention to the applicable laws, rules, and regulations.
Other than these states and cities, there are many states that still lack the planning and implementation of salary disclosure and pay transparency laws by the states and with the progress up until now, it is only a matter of time before all the states in the USA will have labor-friendly laws working towards the betterment of working class.
