What is Pay Transparency?

 In Employment Law, Overtime Law, Wage Law

Pay Transparency Laws

Pay transparency is another worker protection that is being provided in states and jurisdictions across the country. In general, pay transparency requires employers to disclose pay ranges for various jobs that are available. But new laws are also regulating the method and timing of notice. These new laws are aimed at protecting workers from being underpaid for similar work and at helping to close gender and racial wage gaps.

Several States have Passed Pay Transparency Laws

For example, as reported here, Nevada enacted a new pay transparency law that went into effect in October 2021. As reported, the new law applies to all private employers, staffing agencies and all levels of Nevada governmental agencies. The law requires that employers affirmatively notify job applicants of the wage or salary range or rate for the job. As for timing, the disclosures must be made after the applicant completes an interview for the job opening. “Job applicant” is defined to include those seeking to transfer or obtain a new job with the same employer. Penalties are severe. As reported, employers can be subject to administrative enforcement proceedings and can be fined up to $5,000 for each violation.

As another example, Connecticut also enacted a new law that took effect in October 2021. See report here. The law is similar to the Nevada statute but provides that the pay range for a job opening must be provided either at the time requested or when a job offer is made (whether the pay range is requested or not). The Connecticut law also gives current employees the right to request the pay range for their position and to make that request on an annual basis. The law also bans employers from prohibiting employees from discussing their pay or pay ranges.

Colorado also passed a pay transparency law to protect workers in Colorado. Under Colorado law, workers are not required to request pay transparency information. Instead, employers in Colorado are required to provide pay range information regardless of whether job applicants request pay range information. Further, in Colorado, pay range information must be provided in the job posting long before an interview is conducted.

New York City has also passed a new Ordinance requiring pay transparency that will go into effect in May 2022. Similar to the law in Colorado, in NYC, pay ranges will have to be disclosed when a job is posted or “advertised.” See NY Post report here. Again, penalties for non-compliance are severe. The new requirements will be deemed violations of employment discrimination laws and, as such, employers that refuse to comply with pay transparency could be fined of up to $125,000.

As the New York Post reported, there IS controversy about the new pay transparency laws and there remain gaps in coverage. For example, the NYC ordinance does NOT cover remote workers, while the Colorado law does. As reported, certain companies in NYC have stopped hiring remote workers located in Colorado because they do not want to post pay range information.

Call the Employee Rights Attorneys at Herrmann Law Today

For more information, call the Employee Rights attorneys at Herrmann Law. If you think that your employer has violated your rights as an employee, call us. We are proven, experienced, employee-focused attorneys representing workers across the United States in all types of workplace disputes. Use our Online Contact page or call us at (817) 479-9229. We are more than just a law firm for employees – we are an employee’s fiercest advocate, equipping employees with the legal representation needed to achieve the best result possible.


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