LawFlash
Wage transparency laws—quickly cropping up across more US state and local jurisdictions—govern employers’ requirements to disclose pay ranges to job applicants or potential applicants in job advertisements. Varying in scope, these laws will change the permanent labor certification (PERM) process required for certain employer-sponsored foreign nationals and will require employers to consider their job advertisement strategy.
Colorado became the first state to enact a wage transparency law that impacted PERM advertisements. As of January 1, 2021, employers with at least one employee in Colorado have been required to disclose the hourly rate or salary range, along with a general description of benefits, in any job posting for a position that could be performed in Colorado.
Since then, additional jurisdictions throughout the country, including New York City, California, and Washington, have passed similar laws. New York City’s wage transparency law took effect November 1, 2022, and amendments expanding existing laws in Washington and California will take effect January 1, 2023. Many localities have followed suit, and the State of New York is expected to enact similar statewide legislation in the near term. This trend will likely continue in 2023 as state and local legislative bodies return to session.
Labor certification, also known as PERM, refers to the labor market test and US Department of Labor (DOL) certification that there are no US workers willing and...
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