New pay transparency laws roll out in the US
From Jan. 1, three new states — California, Rhode Island and Washington — have joined the chorus of states, cities and counties enacting pay transparency laws meant to give workers more leverage to negotiate their earnings and close wage gaps.
For years, new laws have sought to protect job seekers during the hiring process, for example by prohibiting employers from asking about their salary history (which can prevent underpaid workers from having a fair wage). In 2021, Colorado led the way with a new type of law that requires employers to proactively and publicly lay the cards on the table: Companies were required to list salary ranges on job postings for jobs that could be made in the state.
Since then, other states and localities have passed similar legislation, while others have laws that state employers must disclose minimum and maximum wages to job applicants at some point in the hiring process.
In total, about 1 in 4 American workers now live in a place where employers are required to share pay scales by law, according to calculations by analysts at Payscale. Here is an overview of where pay transparency laws are currently in effect:
California
The law: Employers must list the salary range on all job postings for positions that will or can be filled in California, including jobs that can be done remotely from the state. Current employees are entitled to the pay scale for their position, upon request.
Who does this apply to: Employers with 15 or more workers with at least one employee in California
Cincinnati, Ohio
The law: Employers must split the pay scale for a position after making an offer and if the candidate requests it.
Who does this apply to: Employers with 15 or more workers in Cincinnati
Colorado
The law: Employers must list the salary range, as well as an outline of general benefits, on all job postings for positions that will or could be filled in Colorado, including jobs that can be done remotely from the state.
Who does this apply to: Employers with at least one worker in Colorado
Connecticut
The law: Employers must split a position’s pay scale if a candidate requests it or when they make an offer, whichever comes first. The employer must provide the employee with the salary scale when he is hired, if he changes position or if the employee requests it.
Who does this apply to: Employers with at least one worker in Connecticut
Ithaca, New York
The law: Employers must indicate the salary range on all advertisements for any job, transfer or promotion opportunity.
Who does this apply to: Employers with 4 or more workers in Ithaca
Jersey City, New Jersey
The law: Employers must list the salary range and description of benefits on all advertisements for any job, transfer or promotion opportunity.
Who does this apply to: Employers with 5 or more workers and a primary establishment in Jersey City
Maryland
The law: Employers must split the pay scale for a position if a candidate requests it.
Who does this apply to: Maryland Employers
Nevada
The law: Employers should automatically provide the salary range to candidates after an initial interview, even if the candidate has not requested it. Employers must also provide pay scales for a transfer or promotion opportunity if an employee has applied, interviewed, and applied for it.
Who does this apply to: Nevada Employers
New York City
The law: Employers must indicate the salary range on all job postings for positions that will or can be filled in New York, including jobs that can be done in the field or remotely from the city.
Who does this apply to: Employers with 4 or more workers and at least one in New York
Rhode Island
The law: Employers must provide the salary range to job applicants upon request. Employers must disclose a job’s salary range before discussing compensation with a candidate, when formally making an offer, and if the employee changes positions. Additionally, they must provide a salary range for an employee’s current position upon request.
Who does this apply to: Rhode Island Employers
Toledo, Ohio
The law: Employers must split the pay scale for a position after making an offer and if the candidate requests it.
Who does this apply to: Employers with 15 or more workers in Toledo
Washington
The law: Employers must list the minimum and maximum salary range, as well as a list of benefits the new employee will receive, on all job postings, including for jobs that can be done remotely from the state.
Who does this apply to: Employers who have 15 or more workers and at least one in Washington, are engaging in in-state business or recruiting for jobs that could be filled remotely by someone in the state.
Westchester County, New York State
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