Considering the increasing volume of Pay Transparency Laws in various states, many businesses are struggling to determine how best to comply with the new salary transparency requirements.
Below are some suggestions as to how nationwide employers can be proactive.
- Keep updated records relating to the determination of a “good faith” salary or hourly wage range. Document these findings in an email.
- Always assume that remote positions can be filled by someone that will perform work in an area covered by a transparency law; excluding applicants from certain states or cities is not a guaranteed way to avoid violations.
- Compare salary ranges to the salaries of current employees before posting.
- Consider modifications to job titles where necessary to avoid posting wide ranges.
- Include a list of business factors, such as experience, education, or location, that may also contribute to differences in salary ranges.
- Due to variations in State law, nationwide employers should include all additional forms of compensation and benefits that may be meaningful to the applicant.
- Remember: traditional employees and gig workers are both covered by some laws.
- Insist that any staffing company being used to post or advertise a job listing include the same information that is required of employers.
To avoid complaints, civil action, and fines of up to $250,000, employers must stay knowledgeable about how their businesses are covered by transparency laws. For more information, visit https://www.lockelord.com/newsandevents/publications/2022/11/quickstudy-now-what-tips-for-avoiding-liability