U.S. - Nevada pay transparency law guide
Introduction
Effective Oct. 1, 2021, Nevada's pay transparency law SB293 requires all employers in the state to comply with a salary range disclosure obligation and a salary history ban.
Nevada's pay range disclosure law differs from others in that it is not required to be included on job posting
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Nevada Pay Transparency Requirements
Employers in Nevada are required to disclose the salary range or pay rate for a position to job applicants who have undergone an interview for the position. Additionally, current employees who are seeking promotion or transfer to that position are also entitled to the pay range if they:
- Appled for promotion or transfer to the position;
- Completed an interview for or have been offered the promotion or transfer; and
- Requested the wage or salary range for the position.
Nevada's law also imposes restrictions on employers regarding inquiries on an applicant's salary history during the hiring process. Employers are prohibited from:
- Seeking the wage or salary history of an applicant.
- Using an applicant's wage or salary history to determine employment offers or compensation rates.
- Refusing to interview, hire, promote, or employ an applicant based on their refusal to disclose wage or salary history.
- Discriminating against or retaliating against an applicant for not providing wage or salary history.
Nevada's salary history ban specifies that any discovery of salary history is prohibited in determining compensation. Unlike some other bans, it does not provide an exception for considering voluntarily shared salary information by applicants. This means that even if employers or staffing agencies unintentionally come across an applicant's salary history, they are prohibited from using that information in employment or compensation decisions.
However, Nevada employers are still permitted to ask applicants about their pay expectations.
Employment Equity Standards
Nevada's Fair Employment Practices Act prohibits employers from discriminating against job applicants or employees based on race, color, religion, sex, sexual orientation, age, disability, national origin, or lawful use of a product outside of the workplace.
The Risks of Non-Compliance
Employers in Nevada that fail to comply with the SB293 are subject to various penalties, which include:
- Civil actions initiated by aggrieved applicants.
- Civil penalties for violating the law.
- Actions taken by the Labor Commissioner.
- Administrative penalties to cover investigation costs and attorneys' fees.
In case of a violation, individuals are required to file a complaint with the Nevada Labor Commissioner. The Commissioner will investigate and, if a violation is confirmed, may recover investigative costs and attorneys' fees, as well as impose an administrative penalty of up to $5,000 per violation.
After 180 days from the complaint filing, individuals can request a right-to-sue notice from the Labor Commissioner, and they have 90 days to initiate a lawsuit against the party mentioned in the complaint. Failure to file within this timeframe will result in the claim being time-barred.
How Can Trusaic Assist with Nevada's Pay Transparency Law Requirements?
The goal of pay transparency laws is to promote practices that lead to a more equitable compensation environment. Similar to salary history ban laws, requiring pay ranges on job postings promotes fair pay practices and holds organizations accountable.
If implemented thoughtfully and strategically by an organization, pay transparency can promote a better work environment where employees believe they are paid fairly. Providing salary ranges on job postings can also positively narrow the applicant pool and improve the hiring experience.
Absent salary range information, a job candidate could go through a multi-week interview process only to discover the job offer is far below their salary expectation. This wastes the candidate's time and causes financial and reputational damage to the employer.
The task of moving toward full pay transparency can be daunting for an organization.
1. Comply - Use Trusaic's Salary Range Finder to ensure fair and competitive pay at the time of hire
Salary Range Explainability: Salary Range Finder helps you establish and post competitive and equitable pay ranges to confidently comply with pay transparency laws.
2. Correct - Use PayParity and OpportunityParity to understand, explain and resolve pay disparities:
Trusaic’s pay equity software alleviates the concern of moving to full transparency by identifying the root cause of pay disparities and remedying them. Additionally, it supports the creation of equitable, compliant job postings and enables a consistent approach to pay range disclosure.
This empowers your organization to execute compensation plans with complete confidence that pay equity is at the center.
OpportunityParity™, a feature of Trusaic’s workplace equity analysis software, offers a complete solution for pinpointing and remedying equity concerns in your organization's hiring, promotion, and retention processes.
Drawing from diverse global directives like the OFCCP, EEOC, EU Pay Transparency Directive, and more, it ensures fairness and inclusivity throughout your talent lifecycle, irrespective of geographical boundaries or regulatory frameworks.
How OpportunityParity Supports Your Goals:
- Improves equitable career advancement: Build equity into every aspect of your talent management process, from recruitment to retention.
- Analyzes and improves opportunity equity: Identify and address disparities in hiring, promotion, performance assessment, and retention.
- Helps you achieve workplace equity objectives: Use forecasts to help achieve your diversity objectives and accelerate progress with data-driven insights.
- Builds a culture of trust and transparency: Elevate human capital, bolster people sustainability, and fortify social responsibility metrics by fostering an environment of trust and transparency.
Leveraging Trusaic’s workplace equity software suite will help ensure you remain in compliance with Nevada’s pay transparency law requirements.
Sign up for PayParity by October 31, 2024
and receive OpportunityParityTM at no additional cost
Sign up for PayParity by October 31, 2024 and receive OpportunityParityTM at no additional cost