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Pay Transparency for Current Employees – New Laws Require More Than Disclosure of Job Postings | Orrick – Equal Pay Pulse

In 2021, employers faced a slew of new pay transparency requirements across the country, which we’ve previously outlined here. Although most of them concern the obligation to provide information on the salary scale to candidates of posted positions, many require the disclosure of salary scale information to Current employees in certain circumstances. Employers who have addressed salary range disclosures in job postings are well advised to also review their practices with respect to current employees to ensure compliance.

Here’s a look at the current salary range disclosure requirements that place requirements on current employees as well as those expected to go live next year.

On books

  • Colorado: Employers must make “reasonable efforts” to “advertise, post or otherwise make known” to their Colorado employees “all opportunities for promotion” – and such notices must include the “range of hourly or salary” for the position. post-promotion. if the opportunity exists (or if the promotion is planned) in Colorado. According to interpretive guidelines from the state labor agency, current Colorado employees must therefore be made aware of the salary scale associated with any potential promotion in Colorado before the promotion – defined to include any online advancement – can take place.
  • Connecticut: Effective October 1, 2021, Connecticut requires employers to disclose “the salary scale for the employee’s position” at three separate points in the employment relationship: “(A) the employee’s hiring , (B) a change of position of the employee with the employer, [and] (C) the employee’s first salary scale request.
  • Nevada: Also effective October 1, 2021, Nevada requires disclosure of the “range or rate of pay or wages for the position” to any employee who satisfies all the following: they have (1) “requested a promotion or transfer”; (2) “has been interviewed for promotion or transfer or has been offered the promotion or transfer”; and (3) “requested salary or scale or rate of pay for promotion or transfer”. However, the key term “applied” is not defined in the law.
  • Washington: Washington requires employers to provide “the salary scale or the salary scale … at the request of an employee who is offered an internal transfer to a new position or a new promotion”. Washington law further states that where there is no scale or salary scale, an employer can comply with it by providing the “minimum wage or salary expectations set by the employer.”

On the horizon

  • New York City: On December 15, 2021, the New York City Council passed a bill that would require employers to include “minimum and maximum wages” in every “advertisement” for a “job, promotion or transfer opportunity.” However, what exactly constitutes an “advertisement” for a “promotion or transfer opportunity” is not defined. Similar to Colorado law, New York law would define the range required to “extend from the lowest wage to the highest wage that the employer believes in good faith at the time of posting that they would pay for the job. , promotion or transfer opportunity advertised ”. The invoice is on the mayor’s desk; Barring a veto by new mayor Eric Adams by January 14, 2022, the law will come into force in mid-April 2022.
  • Rhode Island: Starting in 2023, Rhode Island will require employers to disclose the “salary range” for an employee’s position at several stages of their tenure: (1) when hiring, (2) when employee “moves into a new position”, and (3) “at the discretion of an employee” Employers have some flexibility in how they determine the “salary range” to disclose for a given position, because the law approves one of the following methods of identifying the range to disclose to a current employee:
    • any applicable salary scale;
    • salary range previously determined for the position; Where
    • the range of salaries for incumbents of equivalent positions, if applicable.

Take away food

Employers in any of these states should review policies and practices to ensure compliance. It may also be advisable to train employees in HR, recruiting or hiring roles to ensure that the required disclosures are provided.

Employers should also consider whether and how to require responsible persons to document that the required disclosures have been provided. While none of the laws currently passed require that pay scale disclosures be in writing, employers should consider potential challenges in proving compliance if it were to be challenged months or years later (perhaps. be after the person with the duty to disclose has left the company).

An employment lawyer can help employers reflect on these challenges and decide on the best approach to in-cabin legal risk while taking into account administrative and operational challenges given the ever-changing patchwork of requirements.