This year has seen a surge in pay transparency laws aimed at curbing pay disparities and helping workers negotiate fairer wages. Such legislation requires employers to disclose salary ranges and benefits in their job postings. Colorado was the first to create a pay transparency law in May 2019. Prior to this year, a number of states have followed suit, including California, Connecticut, Maryland, Nevada, New York, Rhode Island, and Washington. Local measures are in effect in Jersey City, New Jersey; New York City, New York; Ithaca, New York; Westchester County, New York; Cincinnati, Ohio; and Toledo, Ohio.
2024 Legislation Almost Doubles the Number of Pay Transparency Laws
Hawaii
On January 1, 2024, Hawaiian legislation came into effect requiring employers with 50 or more employees to disclose hourly rates and/or salary ranges in job postings.
Illinois
Illinois’s pay transparency law requires employers with 15 or more employees to disclose the salary range of a position along with a description of benefits and other forms of compensation. Furthermore, this law requires employers to provide current employees with information on promotion opportunities within 14 calendar days after posting the position externally. The law is not effective until January 1, 2025.
Maryland
Effective October 1, 2024, Maryland’s Equal Pay for Equal Work – Wage Range Transparency legislation expands the law to mandate employers to disclose minimum and maximum hourly or salary ranges for a position. This requirement applies to internal and external job postings. The law applies to any job performed in part in Maryland, meaning the law applies to employers outside of the state if any aspect of the position is performed in the state.
Minnesota
The Minnesotan law requires a starting salary range and a description of benefits, including health and retirement benefits, and other compensation in postings for open positions. This applies to employers with 30 or more employees within Minnesota. The law takes effect on January 1, 2025.
Vermont
Signed into law this June, the Vermont pay transparency law will take effect on January 1, 2025. Employers with five or more employees must include minimum and maximum hourly/salary ranges, including whether tips or commissions will be paid, in job postings. This applies to roles performed in Vermont or remote positions performed for Vermont businesses.
Washington, DC
Washington, DC’s law has been in effect since March 25, 2024. Employers must post minimum to maximum salary ranges, including for promotions and transfers. Employers must believe in good faith that the ranges are what will be paid for the position. Additionally, employers must provide applicants with information on healthcare benefits and may not seek salary history information. The law applies to any job with at least one employee in Washington, DC.
Key Takeaway for Employers
While some states have yet to provide guidance on potential penalties, violating these laws may result in lawsuits and damages. Employers should review their current rates of pay, their hiring, promoting, and transferring practices, and update current job postings in anticipation of these laws taking effect. If your state has yet to pass such a law, keep a lookout as this trend continues to spread nationwide. Finally, when planning pay rates for one of these locations, look at local ads to see if you are competitive with the local market.
Brody and Associates regularly advises management on complying with the latest local, state, and federal employment laws. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.