Only a small number of jurisdictions have laws (and Colorado is one of them) requiring employers to provide information about employee compensation in job postings, but pay transparency is becoming a best practice in corporate America. There is a growing movement among organizations of all sizes to now include pay ranges in their job postings, regardless of whether they are subject to pay transparency legislation. Employers should be aware of the states and cities that have implemented pay disclosure requirements, which typically also apply to remote workers, to avoid violations. Workplaces implementing a pay transparency policy should also understand its legal risks, including possible exposure to equal pay and discrimination claims. The Pay Transparency Push Led by a younger generation of workers and a greater emphasis on equity, pay transparency is now becoming more common. Since 2020, eight states and several localities have passed salary range laws, while many more locations are considering them. Legislation and rules have been proposed at the federal level to address pay transparency as well. States and Cities with Pay Transparency LawsAs of June 2024, eight states have enacted salary range transparency laws:
Many organizations are now listing starting pay in job postings, regardless of whether it is required by law, signaling that companies are anticipating the spread of pay transparency legislation. Employer Requirements Under Pay Transparency LawSalary range transparency laws that are currently on the books impose various requirements on employers, creating a regulatory patchwork that must be carefully navigated by those who may be subject to more than one of the new laws. The major areas in which these laws differ include the following:
If a compensation disclosure reveals evidence of a pay gap or discrimination (i.e., employees who are paid less for the same work), the company could face a class action lawsuit brought by employees or enforcement action from state and federal agencies. Call Us to Review Your Employment Policies Employers adopting a pay transparency policy for any reason should consult with a business attorney to ensure that their program is crafted in a way that maximizes the benefits of greater openness and minimizes the potential risks. If you need assistance with employment-related legal issues, contact our attorneys and schedule a meeting to learn how we can support you.
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