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Pay equity has been a hot topic in employment law in recent years. Now, laws requiring disclosure of pay scales are viewed as the next step towards achieving equal pay for equal work across genders, races, and nationalities. In fact, Inc. magazine named 2022 the “Year of Pay Transparency,”¹ and LinkedIn News listed pay transparency as one of the “[i]deas that will change the world in 2022.”² In the last few years, many states and localities have enacted pay equity legislation focused on mandating compensation transparency in job advertisements. California recently joined other jurisdictions in this effort with Governor Gavin Newsom signing Senate Bill 1162 on 27 September 2022. The law, which goes into effect on 1 January 2023, requires employers with 15 or more employees to include a pay scale in job postings and for employers with more than 100 employees to submit an annual report of pay information to the California Civil Rights Department. Similarly, on 1 November 2022, employers in New York City (with at least four employees) must include a good faith salary range for every job, promotion, or transfer opportunity advertised. These are just a few of the growing number of state and local laws implementing pay transparency requirements for job applicants, as well as in some jurisdictions for current employees.

Many employers—including those that operate in regulated locations, employ remote workforces, or recruit nationally—have questions about what...

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