DISCLOSING SALARY INFORMATION TO CANDIDATES – NYC EXPANDS FAIR CHANCE HIRING

As noted in a previous Cadient article about equitable pay laws, several states now require the disclosure of pay ranges to applicants at various stages of the hiring process to help narrow the pay gap among equally qualified employees. Read about New York City’s distinctions among these laws below, and refer to Cadient’s Resources page for more information on pay equity legislation.

New York City to Require Salary Disclosures

The New York City Council recently passed a law prohibiting employers from posting any job listings without the inclusion of minimum and maximum salary information. Under the new law effective in mid-April 2022, NYC employers will be required to include these salary details for any “advertised job, promotion, or transfer opportunity.” This amendment to the New York City Human Rights Law is applicable for all salaried, exempt, or hourly non-exempt positions, and failure to provide a salary range will be considered a discriminatory practice. This is relevant only for positions located in New York City and excludes temporary positions.

State Laws Governing Wage Disclosures

Several states have also enacted requirements to provide pay information to job applicants. Since October 2021, Connecticut’s amended equal pay law requires employers to disclose wage ranges before or at the time of an offer or upon an applicant’s request, whichever occurs sooner. Colorado’s Equal Pay for Equal Work Act went into effect at the beginning of 2021 and is more extensive, requiring employers to disclose the specific salary and benefits information in job postings for open positions in Colorado and for any remote positions.

Other states such as California, Maryland, and Washington also have wage disclosure obligations for employers, but this information must only be provided upon the applicant’s request.

Intended Outcome: Fair Chance Hiring

The purpose of this legislation is to provide all job applicants for the same position with comparable information with the goal of creating a foundation for pay equity from the outset of the hiring process. Employers should establish job offers based on relevant experience and an objective assessment of the job requirements while ensuring compliance with local legislation and applicable collective bargaining agreements. Making offers within the documented salary range and without regard to any discriminatory factors helps promote equal pay for work of equal value.

Revamp your Job Postings and Hiring Process

Review and update job postings to ensure they include required components. Likewise, examine your application and hiring process to remove questions that may not be lawfully permitted where you operate and consider removing prohibited questions for all locations to streamline your business practices. Cadient supports our clients in their compliance efforts by facilitating client-specific changes, and our standardized pay-related questions were removed from the template application several years ago to help ensure compliance.

Establish Fair and Inclusive Salary Ranges

Employers should analyze their pay structure using a detailed system to document any discrepancies within the workforce based on acceptable factors such as relevant experience and training, certifications, performance, seniority, and quantifiable production measurements.

Resources

For more information about equal pay and compensation discrimination, refer to the EEOC’s facts on this topic or the U.S. Department of Labor, and consult with your legal team. Details and statistics regarding states’ equal pay protection laws can be found on the nonpartisan National Conference of State Legislatures website.

You can find more articles on a variety of HR compliance issues at this link.