Pay Transparency in 2022: State Requirements and Quick Facts
How many job postings in your search have you seen that share salary information? Job description and responsibilities are important to ensure your experience matches the requirements, but pay is just as important to seal the deal. Unfortunately, the reality is that most job postings don’t disclose salary and will avoid the topic until the end of the hiring process. As SkillGigs continues in sharing in this conversation, we wanted to look into what key states are doing on this topic. There have been a number of headlines pertaining to pending legislation and state-by-state decisions, but what is it that you should be aware of?
The reason why this topic is at the center of law-based decisions is because of pay disparities. The topic of pay effects various groups differently, specifically if you are a woman or a person of color. There is a big pay gap that must be bridged to fully embrace pay equality for all and pay transparency laws were created to address this unfairness. Job seekers in certain states no longer have to wonder what a job pays to decide if it is worth pursuing. They no longer have to worry about the possibility of getting underpaid.
What states are taking action?
Employers have kept salary discussions concealed, even discouraging employees from discussing the topic with peers. However, with the implementation of pay transparency laws, employers and employees have to approach the salary conversation head-on. There is no dancing around the topic, as the law prohibits employers from advertising a job, a transfer, or promotion without including a salary range.
Not all pay transparency laws are the same. Check out the states that have passed the law or will soon and what it means for employers and employees:
Employers must disclose salary once an applicant requests the information. California was also the first state to prohibit employers from asking applicants for their salary history in the hiring process.
Employers must disclose salary compensation for hourly and salary positions and give a general description of all the benefits and other compensation within the job posting and promotions, including remote jobs.
Employers must provide the pay range to job applicants upon request, either before or at the job offer. Employers must also provide the pay range for an employee’s position upon the employee’s hiring and a change in the employee’s position.
Employers must disclose salary once an applicant requests the information.
Employers, by law, must provide salary details to job applicants who have interviewed for a position. The same goes for current employees seeking a promotion or transfer who have been interviewed and offered the promotion.
The newest state working towards implementing pay transparency laws. Although it was to take effect on April 28, 2022, an amended version is delaying the effective date to November 2022. Employers in the city with four or more employees will have to disclose salary details for all roles, salary and hourly.
Employers located within the city with 15 or more employees, including referral and employment agencies, must provide a pay range for a position offered to an applicant. Does not include any local, state, or federal government except for the city.
Employers located within the city with 15 or more employees, including referral and employment agencies, must provide a pay range for a position for the applicant. Does not include any local, state, or federal government except for the city.
Employers starting on January 2023 will be required to provide pay rates to job applicants upon request. Employers must also continue providing the pay rate at the time of the employee’s hire when the employee moves into the new position and must provide a pay range for an employee’s position upon request throughout employment.
Employers in the state with 15 or more employees must disclose salary compensation for both hourly and salary positions and give a general description of all the benefits and other compensation within the job posting and promotions to the hired applicant.
Each law is set slightly differently for each state. Still, they all can give the job seeker access to the company’s salary ranges for jobs, making for a much more speedy and efficient hiring process. More states are being added to the list as they work to implement transparency laws sooner than later. Inc. called 2022 the “Year of Pay Transparency” while LinkedIn named it “one of the big ideas that will change the world in 2022.”
Pay Transparency Laws Benefit Everyone
Although the advantages of disclosing salary information are more evident for the job applicant and current employees, the fact is that having pay transparency laws is a real benefit for the employer as well. On the one hand, the job seeker has all the necessary information to decide if the position is worth pursuing and provides an opportunity to negotiate salary more efficiently. While on the other hand, the employer weeds out all uninterested applicants, focusing only on those that meet all requirements, including pay. Having open discussions around compensation will also increase diversity, inclusion, and equity in the workplace.
Pay transparency laws are a significant move towards a better company culture that undoubtedly creates a happier place for all.
Keeping salary details until the end can cause uncertainty for the job seeker and ultimately keeps the employer in the driver’s seat. As you know, the topic of work pay is a ridiculously hot and cold conversation — asking the question too soon may be perceived negatively and avoiding the question altogether may put you at risk of getting underpaid. So, what’s the best way to handle this? By establishing expectations that must be met during the hiring process.
SkillGigs Believes in Pay Transparency
SkillGigs is a one-of-a-kind talent marketplace that understands time is of the essence in the hiring process for the applicant and employer. We provide a seamless and efficient way to connect job seekers to the right jobs. SkillGigs stands by pay fairness and takes pride in being part of the pay transparency changes in the workplace.
The bidding technology in our talent marketplace is key to enabling pay transparency at the hiring stage. No longer will you have to go into an interview without knowing the salary of a position. Instead, employers and job seekers connect once hourly, and salary rates are calculated in our bidding process and then a true match is made. The bidding technology also creates a pipeline of employment opportunities for you!
Sign up today to confidently connect and have conversations around pay right away that ensures time is never wasted on your end. Pay transparency for your next gig starts here!