The wage transparency movement is well underway: In 2021, Colorado paved the way for new laws requiring businesses to list salaries on job ads, and New York City introduced rate laws own salary in November 2022. Some other regulations state and city states that the employer must share the salary for a job during the hiring process.
Going forward, three additional states will adopt their own disclosure laws in the new year, and the bills are being discussed with various state and city legislatures across the country.
Here’s what to know about the new changes coming in 2023:
The new salary transparency law takes effect from January 1, 2023
California: Based on California Labor Code Amendment, employers with 15 or more workers will be required to list salary ranges in job postings on the company’s job postings or third-party websites such as Glassdoor, LinkedIn, or other job boards. Businesses must also provide employee pay scales for the work they currently perform, upon request.
The move makes California the largest state where job listings will require wage information by law. It is home to 19 million workers and nearly 200,000 employers will have to comply, including some of the most influential companies in the world such as Apple, Disney, Google and Meta.
Washington: of Washington Equal Opportunity and Pay Act stipulates that employers with 15 or more employees must share the pay range for a job on any print or digital advertisement on the company’s job board or listed on the site. third-party website. The law applies to companies with at least one employee who works in Washington, does business in the state, or is hiring for jobs where someone in the state can remotely recruit.
A to-do list will also be required to include a list company benefits new tenants will receive, including but not limited to: “health care benefits, retirement benefits, any benefits that allow vacation days (including post-paid sick leave accruals) more generous, parental leave and paid time off or vacation benefits) and any other benefits that must be reported for federal tax purposes, such as side benefits.”
Rhode Island: Rhode Island modified Fair Pay Act It does not require employers to post salaries on job ads, but it does say that businesses must provide salaries to job applicants upon request.
Employers will be required to disclose the minimum and maximum ranges provided before discussing wages with candidates, when they are officially hired, and if the employee moves to a new position. In addition, they will have to provide the salary for the employee’s current position upon their request.
More coverage laws could come into play in 2023 and beyond
In New YorkGovernor Kathy Hochul approved the payroll transparency bill in late December, which is expected to go into effect in September 2023. Like the New York City bill, the legislation is statewide. The state requires employers with four or more workers to list wages for all advertised jobs and promotions.
Other payment transparency legislation is pending in Massachusetts and South Carolina.
Experts say it’s only a matter of time before listing salaries on job ads becomes the norm.
For example, Lulu Seikaly, a senior corporate attorney focusing on employment law at Payscale, says: “For example, businesses across the US have flocked to Payscale to strategize the implementation of scope. their own as soon as legislation was passed in California and Washington. Even if they are not headquartered in states with wage laws, they may still be bound by these laws if they plan to hire workers remotely or they may want to compete with companies named age in Silicon Valley and on the coasts.
“Progressive companies are seeing writing on the wall,” says Seikaly. “They understand that if they post a competitive range, it’s a great branding opportunity for them.”
Overall, by 2023, about 1 in 4 workers will be subject to state or local laws that require businesses to be transparent about their wages, according to analysts. at Payscale.
Economists say that mandatory disclosure by employers could help close pay gaps between gender, race and LGBTQ identities.
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