In 2021 and 2022, we saw a wave of pay transparency laws aimed at improving pay equity. It first started with Colorado in 2021, then New York City in late 2022. Recently, states such as California, New York, Washington, and Rhode Island have passed similar pay transparency laws. These laws often differ by locality and state, creating many compliance questions for employers.
California
Beginning January 1, 2023 employers with 15 or more employees (at least one of whom is located in California) must include the pay scale for a position in any job posting, including positions posted by third parties. "Pay scale" is defined as either the salary or hourly wage range. Other forms of compensation (such as bonuses) are not required to be disclosed. Employers are also required to maintain a record of job titles and wage history during each employee's employment (and for three years after termination). Lastly, private employers with over 100 employees will be required to file an annual pay data report with the California Civil Rights Department (formerly known as the Department of Fair Employment and Housing or "DFEH") by the second Wednesday in May. Note that federal Employer Information (EEO-1) reports can no longer be used to satisfy this reporting requirement.
New York
As of November 1, 2022, New York City began requiring employers with four or more employees to include a position's minimum and maximum annual salary, or hourly wage, in any job posting. The law applies to any...
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