A recent wave of pay transparency laws has left many employers apprehensive about recruiting across state lines. Pay transparency refers to the practice of making employee compensation figures visible to others – internally, externally, or both. Roughly 1 in 4 U.S. workers lives in a state or locality with a salary transparency law in place, and more are coming. Currently, eight states and six cities and localities have passed legislation specifically addressing pay transparency. Below is a brief overview of the laws in place in states across the country.
In January 2018, California's Equal Pay Act became the first in the country to ban employers from asking applicants about their salary history. The law also requires employers to disclose the pay range for a job if an applicant asks for it after an initial interview. The state's new pay transparency law requiring the inclusion of pay scales in job openings applies to employers with 15 or more employees, at least one of whom is located in California, went into effect January 1, 2023, making California the largest state where job listings will require salary information by law. California's law applies to remote positions.
Since January 2021, Colorado's Equal Pay for Equal Work Act has required employers with one or more employees in Colorado to disclose the hourly or salary compensation, or a range of the hourly or salary compensation, that the company would pay for the role, in...
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