By Jordan Jeter
California’s new pay transparency law will go into effect January 1, 2023. In addition to changes to employer reporting requirements, the new law requires employers of 15 or more people to include the pay scale for positions in any job postings. This requirement extends to third-party job postings, such as online recruitment listings. The law also requires employers to provide current employees with the pay scale for their position upon request.
The California law also sets forth detailed requirements for employers with 100 or more employees to submit pay data reports by race, ethnicity, and sex to the California Civil Rights Department. Employers must submit that information on or before the second Wednesday of May 2023, and for each year thereafter on or before the second Wednesday of May.
Washington State also has a new law requiring salaries in job postings that goes into effect January 1, 2023. Employers of 15 or more people must include a wage scale or salary range in job postings, along with a general description of all benefits and other compensation offered to applicants when hired. This requirement applies whether the employer posts the job directly or indirectly, such as through a recruiter or online listing. For internal transfers or promotions, the requirement for employers to provide a wage scale or salary range upon employee request remains in effect.
These new laws follow Colorado’s Equal Pay for Equal Work Act which went into effect in 2021. Among other requirements, Colorado employers must include pay information, as well as other compensation and benefits, in job postings. This requirement applies to anyone employing a person in the State of Colorado, regardless of the size of the employer or whether the position is remote for a non-Colorado company.
With these new laws, these states join a growing number of jurisdictions enacting requirements aimed at greater pay transparency. New York City, for example, has similar requirements for employers starting November 1, 2022. Several other cities and counties have enacted local ordinances and additional states have similar requirements in various stages of the legislative process. Furthermore, with the rise in remote work, employers must be diligent in ensuring compliance based on where applicants and employees are located.
Given these shifting requirements, employers should stay mindful and review their job postings to make any necessary updates. If you have any questions about job posting requirements for your business, please contact your employment counsel.
This update is prepared for the general information of our clients and friends. It should not be regarded as legal advice. If you have questions about the issues raised here, please contact any of the attorneys in our Labor & Employment Practice Group, or the attorney with whom you normally consult.