It’s 2023. What pay transparency laws should I know about? - Another Source -Another Source

It’s 2023. What pay transparency laws should I know about?

Jan 2023

Marcie Glenn

Many of you have heard about the pay transparency legislation that went into effect in New York City on November 1, 2022. We featured an update regarding this law on our blog. With the beginning of the new year, a handful of other states have enacted labor laws that impact you as an employee. 

Here are some major ones you should know about: 

Starting January 1, 2023 

Washington 49.58.110 

For companies with 15 or more employees, the Evergreen State requires disclosure of wage or salary range. This applies to current employees who are promoted or transferred internally. Pay bands must also be shared on job postings, along with an overview of benefits and any other compensation provided. The posting must be clear about the top and bottom of the pay scale; for example, employers can’t say “up to $35.00 an hour” because this does not specify what the minimum rate is.  

For reference, here is a helpful guide released by the Washington State Department of Labor & Industries.  

California SB 1162 

Similar to Washington state, California SB 1162 requires employers with 15 or more employees to include the pay range on a job posting (and also applies to any third party who posts on behalf of the company). Upon reasonable request, employees must be provided with the pay scale for their current position. Under the new law, employers must record the job title and wage history of each employee up to 3 years after they exit the company. 

Rhode Island S0270A 

How many job seekers have been asked during an interview what their previous compensation was? Under S0270A, employers in the state of Rhode Island are not allowed to ask applicants about their salary history – or use that information to make a hiring decision. Pay range must be disclosed to candidates before the subject of compensation is discussed. This information must be presented clearly both at the time of hire and if (or when) the employee changes positions. 

In this illustration, workers stand atop differently sized piles of coins.

Image courtesy of Toast

It’s important to understand what protections are in place as you navigate the job search. Even with these new laws in effect, you must do your due diligence to research salaries for the roles you apply to in order to be ready for conversations with hiring managers.  

If you found this to be helpful, take a moment to share it with anyone who might benefit from this information!  

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