Pay transparency obligations are in effect in New York State, and the state Department of Labor has issued employer guidance and proposed regulations. As of September 17, 2023, covered employers must include in any advertisement for a job, promotion, or transfer opportunity the minimum and maximum annual salary or hourly rate that the employer believes, in good faith, they are willing to pay the successful applicant at the time of the posting. Read more.
Employers are reminded that the New York State Pay Transparency Law goes into effect Sept. 17, 2023. Covered employers in New York State will have new pay transparency obligations related to job advertisements. Covered employers must include in any advertisement for a job, promotion, or transfer opportunity the minimum and maximum annual salary or hourly range. Read more.
Illinois Governor J.B. Pritzker signed a new law on August 11, 2023, that will amend the Illinois Equal Pay Act (IEPA) and mandate pay transparency in job postings for most Illinois employers. The law will go into effect on January 1, 2025, and, along with other recent amendments to the IEPA, will have a significant impact on how employers operate in Illinois. The amendments make it unlawful for an employer with at least 15 employees to fail to include the pay scale and benefits for a specific job in a job posting in Illinois. Read more.
As an update to our previous report on Colorado’s new Ensure Equal Pay for Equal Work Act, on July 28, 2023, the Colorado Department of Labor and Employment (CDLE) issued a revised Interpretive Notice and Formal Opinion (INFO) #9 to establish a timeline for the proposed rulemaking process. According to INFO #9, proposed rules will be published by late September 2023. Input from Coloradans will be invited via participation in public meetings and submission of written comments. Final rules are expected to be issued by late fall 2023. After final rules are promulgated, the CDLE will then issue an updated INFO #9 covering the 2024 Amendments “in detail.”
Governor Josh Green has signed the newest pay transparency bill into law for the state of Hawaii. SB 1057, which goes into effect on January 1, 2024, will require Hawaii employers with at least 50 employees to disclose an hourly rate or salary range that reasonably reflects the actual expected compensation on job listings. The law does not require disclosure of other components of pay (such as benefits) as other state laws require.
The law excludes internal transfers or promotions within a current employer, as well as public employee positions for which salary, benefits, or other compensation are determined pursuant to collective bargaining. The law does not define expected compensation.
The law does not specify whether the 50-employee threshold refers to nationally or within the state. Generally, the pay transparency laws that are already in effect in many states across the country, including California, Colorado, and soon, New York State, apply to employers with as few as one employee within the state and as many as 15 employees. Here, Hawaii appears to be taking a different approach.
Employers doing PERM cases should be prepared to add Hawaii to the list of states with similar requirements. Click here for additional guidance on PERM compliance.
These laws are moving quickly — and are varied. Employers should consider how to deal with this complex patchwork of salary transparency laws. Some may prefer a single, national approach geared to the most rigorous of the laws. Others may choose to include specific disclosures tailored to each jurisdiction. Whatever your preference, employers should consult with counsel to understand the legal risks and practical complications that their desired approach to these pay transparency laws may create. Jackson Lewis attorneys are available to assist employers in adopting the strategy that best meets their needs.
The Colorado legislature has passed the Ensure Equal Pay for Equal Work Act, amending the Equal Pay for Equal Work Act (EPEW) to clarify and enhance an employer’s obligations relating to announcement of a promotional opportunity (which the Act refers to as a “job opportunity”). The Act was sent to Governor Jared Polis and he is expected to sign it into law. The effective date of the new law is January 1, 2024. Read more.
The City of Columbus joins Toledo and Cincinnati as the latest Ohio city to prohibit employers from asking prospective employees about past compensation. Effective March 1, 2024, employers operating in Columbus may not ask about a prospective employee’s wage or salary history. Read more.
In 2022, the California legislature passed Senate Bill (SB) 1162, which expanded the state’s existing pay data reporting requirements for “payroll employees” to include a new pay data report for employers with 100 or more “labor contractor employees.” Under SB 1162, the pay data reporting deadline was moved to May. This year these reports are due May 10th. But—according to a new FAQ from the California Civil Rights Department—beginning April 18, employers may seek “enforcement deferral” on their “labor contractor employee reports.” This delayed enforcement may come as a pleasant surprise to employers still grappling with the expanded scope of the labor contractor reporting. Read more.
New York Governor Kathy Hochul has signed an amendment to the New York State Pay Transparency Law that modifies the applicability of the law, lessens an employer’s recordkeeping requirements, and clarifies what constitutes an “advertisement.” The September 17, 2023, effective date remains unchanged, as does the requirement to include the job description in an advertisement, if one exists. Enactment of the New York law followed other states and cities, like California, Washington, and New York City. Read more.
This year, employers in California have updated pay data reports to submit to the state’s Civil Rights Department (CRD). Senate Bill (SB) 1162, passed in 2022, updated previous employee pay data reporting obligations and created an entirely new obligation to pay data reporting related to “employees hired through labor contractors.” This year, these pay data reports are due by May 10th. Read more.