Complete Guide to Pay Transparency and How It's an Advantage

As employees have pushed for an enhanced right to know they are compensated fairly, pay transparency has been an increasingly hot topic over the last few years  To capitalize on this trend, many employers have differentiated themselves by designing compensation philosophies that ensure pay equity in their hiring, pay-for-performance, and retention practices. As a result, employees have more insight than ever into their market value.  

State and local governments are also taking legislative action.  Many states and jurisdictions have already passed (or are considering passing) laws requiring pay transparency for applicants during the hiring process. Some states go so far as to require that pay ranges for all jobs be posted publicly.

Our general guidance is to endorse pay transparency across all states and all employees for a few reasons:

1. Simpler to manage as a strategy across the country for people/HR teams

2. Creates the same level of fairness & transparency for all employees

3. Same strategy for hiring candidates & employees

4.Turn it into an advantage during hiring and retention. Promote your company, your growth story, unique benefits and values

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Here is a quick summary of state and local pay transparency laws (make sure to consult with legal counsel to understand specific compliance requirements):

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State laws that require salary ranges to be included in job postings

• California (AB 2282)
• Colorado (EPEW Act)
• New York State (S.9427-A/A.10477) - goes into effect in Sept 2023
• New York local jurisdictions - NYC, Ithaca & West Chester all currently require salary ranges to be included in job postings

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State laws that require salary ranges to be provided at some point in the interview process:

• Connecticut (HB 5243) - upon request or at time of offer
• Maryland (HB 123) - upon request
• Nevada (SB 293)  - after first interview

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States considering requirement to include salary ranges in job postings

• Connecticut
• Massachusetts
• Montana

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At CandorIQ, we believe that it should be easy for any company to design and implement a transparent and equitable pay philosophy whether it is required by law or not. And if it is, we have built tools to ensure that you are in compliance.

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Contact us if you’d like to learn more about pay transparency, compensation design and more at contact@candoriq.com

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