Current Pay Transparency Legislation and Compliance

As pay transparency continues to gain traction in the national conversation around DEI, new laws are mandating the practice. Naturally, these laws vary by state, and keeping track of them can be a challenge. Particularly for companies that conduct business across state lines, a growing trend in this era of remote work, it’s never been more important to keep track of the legal responsibilities surrounding pay transparency.

At a minimum, all the pay transparency laws listed below require employers to provide salary ranges to all candidates applying to relevant positions. Some laws mandate that employers provide this by the first interview. Others only mandate this by candidate request. Below is a list of all current (as of late 2022) pay transparency legislation, by state.

California

The Equal Pay Act is a long-standing law prohibiting gender discrimination in the workplace but has been amended over the years to protect a wide range of other relevant factors, including race and ethnicity. The Equal Pay Act prohibits an employer from paying any of its employees less than others for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar conditions.

In 2018, the law was amended to mandate pay transparency upon request and to ban employers from requesting salary histories from job candidates. Beginning in 2023 with SB 1162, employers will also have to include pay range for the role in all job postings. In addition, larger companies must submit demographic and pay data to the state.

Colorado

In 2021, the Equal Pay For Equal Work Act was amended to become the most progressive pay transparency legislation in the country. It mandates that employers include salary ranges and benefits in job postings, as well as notify employees of promotional opportunities, and keep records of both job descriptions and wage rates. Even if you only have one employee in Colorado, you need to post the pay range and benefits.

Connecticut

HB6380 requires employers to disclose salary ranges to both applicants and employees on request. For applicants, the range needs also needs to be disclosed before an offer is made if it wasn't previously requested. Pay ranges must also be disclosed to current employees when changing roles. And there is a salary history ban.

Maryland

Passed in 2021, Equal Pay For Equal Work provides that employers must disclose salary range to applicants and employees when they request, including other jobs within the organization. It also requires disclosure of pay ranges by applicants upon request and when an offer is made. Maryland also prohibits asking about an applicant's prior salary.

Massachusetts

The Massachusetts Equal Pay Act requires pay equity and prohibits employers from asking about salary history. Under the law, employees have a right to discuss their wages with others. Massachusetts is currently considering new pay transparency laws that would require an employer to provide the pay range to applicants and employees upon request.

Massachusetts also has a safe harbor period of three years for employers to perform pay equity audits and make "reasonable progress" toward eliminating gender pay gaps.

Nevada

2021’s SB 293 requires Nevada employers to disclose salary ranges for positions with both job applicants and current employees upon request. Applicants are also entitled to know the salary range for the position without request once they have completed an interview. Current employees applying for a promotion or different position are entitled to the salary range when they are being considered for the new role. Nevada also has a salary history ban.

New York

Having passed state legislation, SB9427A is currently on its way to being signed into law. It will require employers to disclose the salary range for positions to both job applicants and current employees. It will also require employers to disclose the job description and information on other compensation and benefits.

Rhode Island

Effective in 2023, the Rhode Island Equal Pay Act gives applicants and employees the right to inquire about pay without retaliation. It also requires the employer to disclose the pay range for the job upon hire and when current employees change roles. Rhode Island also has a safe harbor provision that gives employers up to two years to identify and correct pay equity issues. This is to encourage employers to assess and address pay equity.

Washington

Washington amended its Equal Pay and Opportunities Act in 2019 to require employers to provide a salary range after they’ve made an offer to a candidate, but only if the applicant requests the information. The same rule applies to employees who are changing roles or just want to know the range for their own job. If they ask, the employer must provide the pay range. There is also a salary history ban.

Beginning in 2023, employers must also post the salary range in job postings.

Posting Pay Ranges Summary

• As of January 2023, the following U.S. states and cities require employers to post the pay range in job ads: California, Colorado, Washington, Ithaca, N.Y., New York City, Jersey City, N.J., Westchester County, N.Y.

Salary History Ban Summary

• The following U.S. states and territories currently have salary history bans:Alabama, California, Colorado, Connecticut, Delaware, Hawaii, Illinois,
  Maine, Maryland,Massachusetts, New Jersey, New York, Oregon, Puerto Rico, Vermont, and Washington
• In addition, the following cities/local jurisdictions have enacted salary history bans:San Francisco; Kansas City, Missouri; New York City; Albany County, N.Y.; Suffolk County, N.Y.; Westchester County, N.Y.; Cincinnati; Toledo, Ohio; Philadelphia; and Columbia, S.C.
• Some salary history bans apply only to government positions; others apply to all employers.