Growing Number of States Implementing New Wage Range Disclosure
August 10, 2021 – Equal Wage for comparable work (worth) is not a new concept, but in recent years states have been more focused on making such a concept a reality for workers. These efforts are designed at closing the wage gap between men and women, and they are gaining support. A growing trend in these efforts is the concept of wage transparency, including wage disclosure requirements.
Wage disclosure requirements obligate employers to do just that, disclose the wage ranges for vacant positions and for promotions. Connecticut is the latest state to join this trend. While each state’s law is unique and has different disclosure requirements, all follow the same common theme with the same end goal in mind. Greater wage transparency in an effort to close the pay gap. An employer’s failure to comply with one of these laws could be met with significant liability, including court room litigation.
Currently, California, Maryland and Washington all require employers to disclose certain wage data upon an employee’s or applicant’s request. However, Connecticut and Colorado take the issue a step further by making it a proactive obligation of an employer to provide such information.
In Connecticut, employers must provide wage range information at the time an offer of employment is made or the applicant’s request for such information (whichever occurs first). In addition, employers must provide employees with wage range information upon hire, a change in employee’s position, and upon the employee’s request for such information. Colorado has implemented an even more robust disclosure requirement requiring employers to disclose the pay range in the job posting.
Whether you employ workers in one of these states or not it is important for you to be aware of the direction wage disclosure laws are trending. Perhaps it is a good time to do an analysis of your workforce to assess if you are paying your workers equally for comparable work. But remember, don’t create a smoking gun. If you suspect or find concerns, seek legal counsel immediately.
Brody and Associates regularly advises management on complying with the latest state and federal employment laws. If we can be of assistance in this area, please contact us at email@example.com or 203.454.0560.