Concerns about pay equity are nothing new. But tangible steps to do something to close pay equity gaps are relatively new and taking the form of pay transparency laws that are rapidly emerging around the country at both the state and local levels.
These laws include restrictions such as bans on employers seeking information about applicants’ past salary histories to requirements for employers to share information about pay ranges in their job postings and hiring materials.
One example—is anew pay transparency amendment currently making its way through the New York State Legislature. Currently being reviewed by New York Governor Kathy Hochul the bill would take effect on September 17, 2023, if passed.
What’s new about this amendment?
The most notable amending of New York’s proposed pay transparency law is that it would apply to any remote position physically performed outside that of New York that reports to an office, supervisor, or worksite in the state of New York. That obviously has a broad reach—and the potential to create confusion, complexity, and added costs for employers in New York relying on remote workers, as many employers are now doing.
New York City Pay transparency requirements
The legislation being considered by Governor Hochul is separate from existing pay transparency laws in New York City. This demonstrates the sometimes confusing patchwork of laws and regulations that impact employers who recruit and hire from multiple locations.
New York City has its own pay transparency requirements whichtook effect on November 1, 2022. There, employers with at least four employees are required to include salary information in job advertisements and job postings.
The new legislation being reviewed by Governor Hochul, though, would apply across the entire state of New York, and expand the impact and implications for employers in the state.
Pay transparency is on the rise
New York State isn’t the only state that has taken steps recently to legislate pay transparency among employers. In 2021,Colorado was the first state to require employers to include salary ranges and benefits information on job ads. Since then, more than a dozen other states have followed suit, most recently California, Rhode Island, and Washington with laws taking effect in those states on January 2, 2023.
The shifting landscape related to pay transparency laws, and the variations in requirements from state to state and even within municipalities, can make these requirements very complex and challenging for HR leaders to stay on top of. That’s particularly true of organizations that hire employees from locations outside of the geography of their headquarters, or that employ hybrid or remote workers.
To say on top of requirements around the country—and around the world—Trusaic offers a color-coded pay equity map highlighting pay requirements and indicating which are most stringent, medium, or low in terms of requirements. It’s a shifting landscape, so it’s a good resource to stay on top of requirements in areas where you hire employees.
As more laws like these surface and take effect, it’s important for employers to ensure that they are posting equitable and competitive salary ranges in their job listings. Tools like Trusaic’sSalary Range Finder can help employers ensure fair pay, prevent pay equity issues like wage compression, and comply with increasing pay transparency requirements.
To learn more about how software like the Salary Range Finder can help employers comply with pay transparency laws, download our guide on navigating pay transparency regulations.
Conducting a pay equity audit is a key component to ensuring equitable compensation within your organization. Just as important as the analysis is how you communicate findings and progress with various stakeholders. Download The Pay Equity Communications Planner to learn best practices for discussing compensation, both internally and externally.