Please note that the information contained in this blog is being provided for informational purposes only and should not be construed as legal advice. Please consult your legal counsel to ensure compliance with all federal, state, and local laws.
A Summary of Where Compensation Disclosures are Required in Job Postings
Pay transparency laws are sweeping the nation and the trend shows no signs of slowing down. In general, pay transparency laws require that employers disclose wage and/or benefits information to applicants and/or employees at specified moments in the hiring process. The purpose behind the pay transparency laws is an honorable one; By making pay information evident, the laws arguably aid in reducing pay disparities. The various pay transparency laws still differ concerning when disclosures are required and what types of compensation information must be disclosed.
Below you will find succinct summaries of jurisdictions that have passed pay transparency laws which mandate compensation disclosures in job postings. Please note, this information is not intended to be all inclusive. Indeed, the information discussed below only focuses on compensation disclosures in job postings and does not include other obligations such as compensation disclosures to employees and record retention requirements.
Some tips for review of the compensation disclosure guidance include:
- Where are all of my employees currently located?
- How many employees are in each city and state?
- What locations may we be considering for future hires?
- What roles are remote and how might that impact work location?
- Where is recruiting taking place for your posted positions?
California (CA Labor Code § 432.3)
Effective Date
January 1, 2023
Covered Employers
The disclosure requirement applies to employers with 15 or more employees. California Division of Labor Standards Enforcement’s guidance states that the disclosure requirement applies if at least one of the employees is currently located in California.
Disclosure Requirement
Employers must include the salary or hourly wage range that the employer reasonably expects to pay for the position in any job posting. Guidance states that if the position’s hourly or salary wage is based on a piece rate or commission, then the piece rate or commission range the employer reasonably expects to pay for the position must be included in the job posting.
Geographical Boundary
Guidance states that the pay scale must be included within the job posting if the position may ever be filled in California, either in-person or remotely.
Colorado (C.R.S. § 8-5-201)
Effective Date
January 1, 2021
Covered Employers
The disclosure requirement applies to every person employing a person in Colorado. Colorado Department of Labor and Employment’s guidance states that the disclosure requirement applies to all employers that employ at least one person in Colorado, and all employees of those employers. Further, the guidance states that if an employer has no employees in Colorado at the time of its hiring, then it is not covered for that hiring decision, even if it considers Colorado applicants, or ultimately hires someone who would work in Colorado.
Disclosure Requirement
Employers must disclose in each posting for each job opening the hourly or salary compensation, or a range of the hourly or salary compensation, and a general description of all benefits and other compensation to be offered to the hired applicant. Guidance explains that the benefits that must be generally described include health care, retirement benefits, paid days off, and any tax-reportable benefits, but not minor “perks” like use of an on-site gym or employee discounts.
Geographical Boundary
Guidance states that remote work performable in Colorado or elsewhere for a covered employer must comply with the disclosure requirement, even if the job posting states that the employer will not accept Colorado applicants. However, the guidance states that the disclosure requirements do not apply to jobs to be performed entirely outside Colorado.
Ithaca City, New York (Ithaca City Code § 215-3(F))
Effective Date
September 1, 2022
Covered Employers
The disclosure requirement applies to employers with four or more employees whose standard work locations are in Ithaca City.
Disclosure Requirements
Employers must state the minimum and maximum hourly or salary compensation whenever the employer advertises an opportunity for employment as an employee, including a job, promotion, or transfer opportunity.
Geographical Boundary
The law does not explicitly address whether the disclosure requirement applies to job postings for remote positions outside of Ithaca City.
Jersey City, New Jersey (Jersey City Municipal Code § 148-4.1)
Effective Date
April 13, 2022
Covered Employers
The disclosure requirement applies to employers within the City of Jersey City with 5 or more employees in their employ within Jersey City. Persons working as independent contractors in furtherance of the employer’s business shall be counted as employees.
Disclosure Requirement
Employers must post a minimum and maximum annual salary or hourly wage whenever the employer advertises by any means to provide notice of employment opportunities, transfers, or promotions.
Geographical Boundary
The law does not explicitly address whether the disclosure requirement applies to job postings for remote positions outside of Jersey City.
New York (NY Labor Law §194-b)
Effective Date
September 17, 2023
Covered Employers
The disclosure requirement applies to any person, corporation, limited liability company, association, labor organization or entity employing four or more employees in any occupation, industry, trade, business or service, or any agent thereof. It is not clear whether all four employees must reside in New York or just a portion thereof.
Disclosure Requirement
Employers must disclose the minimum and maximum annual salary or hourly range of compensation that the employer in good faith believes to be accurate and a job description, if such description exists, in advertisements for a job, promotion, or transfer opportunity. Advertisements for jobs, promotions, or transfer opportunities paid solely on commission must disclose in writing in a general statement that compensation shall be based on commission.
Geographical Boundary
The disclosure requirement applies to the advertisement of a job, promotion, or transfer opportunity that can or will be performed, at least in part, in the State of New York.
New York City, New York (N.Y. Code § 8-107)
Effective Date
November 1, 2022
Covered Employers
The disclosure requirement applies to employers with four or more employees. New York City Commission on Human Rights’ guidance indicates that the four employees do not need to work in the same location, and they do not need to all work in New York City. As long as one of the employees works in New York City, the workplace is covered.
Compensation Disclosure Requirement
Employers must state the minimum and maximum annual salary or hourly wage whenever they advertise a job, promotion or transfer opportunity.
Geographical Boundary
Guidance states that covered employers should follow the new law when advertising for positions that can or will be performed, in whole or in part, in New York City, whether from an office, in the field, or remotely from the employee’s home.
Washington (Wash. Rev. Code § 49.58.110)
Effective Date
January 1, 2023
Covered Employers
The disclosure requirement applies to employers with 15 or more employees engaging in any business, industry, profession, or activity in Washington. Washington State’s Department of Labor and Industries’ guidance states that the 15 or more employees threshold includes employees that do not have a physical presence in Washington, if the employer has one or more Washington-based employees. Furthermore, the guidance states that “engaging in any business, industry, profession, or activity in Washington” includes employers that do not have a physical presence in Washington but engage in business in Washington or recruit for jobs that could be filled by a Washington-based employee.
Disclosure Requirement
Employers must disclose in each posting for each job opening the wage scale or salary range, and a general description of all of the benefits and other compensation to be offered to the hired applicant. Guidance explains that a “general description of all benefits” includes, but is not limited to, health care benefits, retirement benefits, any benefits permitting paid days off (including more generous paid sick leave accruals, parental leave, and paid time off or vacation benefits), and any other benefits that must be reported for federal tax purposes, such as fringe benefits. Guidance explains that “other compensation” includes, but is not limited to, bonuses, commissions, profit-sharing, stock options, or other forms of compensation that would be offered to the hired applicant in addition to their established salary range or wage scale.
Geographical Boundary
Guidance states employers must disclose wage and salary information in postings for remote work that could be performed by a Washington-based employee and that an employer cannot avoid disclosing wage and salary information requirements by indicating within a posting that the employer will not accept Washington applicants. However, employers do not need to disclose wage and salary information for jobs to be performed entirely outside Washington even if the job posting reaches Washington-based applicants.
Westchester County, New York (Westchester County Laws § 700.03)
Effective Date
November 6, 2022
Covered Employers
The disclosure requirement applies to employers with 4 or more employees. It not clear whether all 4 employees must reside in Westchester County, or just a portion thereof.
Disclosure Requirement
Employers must state the minimum and maximum salary whenever the employer posts a job, promotion, or transfer opportunity.
Geographical Boundary
The disclosure requirement only applies to posts for positions that are required to be performed, in whole or in part, in Westchester County, whether from an office, in the field, or remotely.