Over the past two years, pay transparency laws have quickly spread and become a topic of state legislatures nationwide.
As pay transparency laws continue to proliferate across the United States, employers will need to consider modifying their approach to job postings and promotional opportunities. Pay transparency laws continue to pass in major states (and localities) across the country, and New York seems likely to be the next state to join the trend. As seen within recent states' laws, requirements under pay transparency laws will not remain limited to applicant requests, as many employers assume. Instead, these laws are being expanded to apply to job postings for new hires, promotions, and transfer opportunities within companies as well, which creates more opportunity for violations.
Setting the Standard
In November of 2020, Colorado redirected the course of pay transparency laws within the United States. While Colorado did not enact the nation's first pay transparency statute, Colorado amplified the requirements under such statutes and drastically increased the obligations that companies are now required to meet. Colorado's enhanced obligations include the requirements that employers with any employees in Colorado (1) "make reasonable efforts to announce, post, or otherwise make known" any promotional opportunity to all current employees and (2) include compensation ranges and a general description of benefits on all job postings for work tied to Colorado locations...
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