The document provides an overview of pay transparency legislation that is being implemented or proposed in various U.S. states and Canada. It discusses laws going into effect in 2022-2023 that require employers to include pay ranges in job postings. States/locations that are highlighted include Washington, California, New York, Colorado, New Jersey, Rhode Island, and others. Canada's provinces of Prince Edward Island and Ontario are also looking to implement similar requirements. The document advises employers to prepare for more legislation in 2023 and discusses best practices for becoming more transparent with pay. It shares McGuireWoods' experience implementing transparency and takes questions from participants.
3. Today's Agenda
• A pay transparency legislation overview for certain U.S. states and Canada
• What to expect in the new year & how to respond
• McGuireWoods pay transparency journey
4. Poll Question 1 : Do you currently share pay ranges
in job postings?
A. No, we do not do this currently
B. We are working on this
C. We only share ranges for locations where we are required
D. We do this for all locations
E. I am not sure
6. Where and when is pay transparency legislation happening?
Jan. 1, 2021
Colorado State (Job
Ads)
April 13, 2022
Jersey City, NJ (Job
Ads)
Sept. 1, 2022
Ithaca, NY (Job Ads)
Nov. 1, 2022
NYC, NY (Job Ads)
Nov. 6, 2022
Westchester County,
NY (Job Ads)
Jan. 1, 2023
Washington State
(Job Ads)
Jan. 1, 2023
Rhode Island
(Interview)
Jan. 1, 2023
California (Job Ads)
September 17, 2023
New York State
(Job Ads)
7. Washington
Legislation Overview
Effective: January 1, 2023
• Who: employers with 15 or more employees, with at
least 1 working in Washington
• What: shall include pay scale (hourly or salary) for a
position in any job posting and general description of
benefits
• Proposed Penalties: civil action for violations—greater
of actual damages or $5,000 plus interest, costs, and
reasonable attorney’s fees.
• Other considerations: additional pay reporting
requirements
8. California Legislation
Overview
Effective: January 1, 2023
• Who: employers with 15 or more employees, with at
least 1 working in California
• What: shall include pay scale (hourly or salary) for a
position in any job posting that can be performed in
California
• Commission? Must be included for roles that are
paid wholly or in part on commission
• Proposed Penalties: between $100 and $10,000 per
violation
• Record Keeping Obligations: maintain records of job
title and wage rate history for each employee for 3
years post employee's employment
• Other considerations: additional pay reporting
requirements and DOL guidance
9. Effective: September 17, 2023
• Applies to employers with 4 or more employees, with
at least 1 working in NY state
• Internal and external job postings for applicants and
employees that “can or will be performed, at least in
part, in the State of NY.”
• Penalties up to $3,000 for failure to comply
• What must the posting include:
• Actual compensation or range of compensation
• Good faith standard
• Job description (if a description exists); and
• General description of other comp offered
New York State
Legislation Overview
10. Canada
• When: June 1, 2022
• Who: “employers”
• What: shall expected pay for the position or range of
expected pay for the position in all publicly advertised
job postings.
Prince Edward Island Ontario
• When: TBD
• Who: “employers”
• What: shall expected pay for the position or range of
expected pay for the position in all publicly advertised
job postings.
• Other Considerations: employers with 100 or more
employees must post their transparency reports online,
or at least in 1 conspicuous place in every workplace of
that employer. Province shall also publish transparency
reports online.
11. • When: June 1, 2022
• Who: “employers”
• What: shall expected pay for the position or range of
expected pay for the position in all publicly advertised
job postings.
Prince Edward Island
Legislation Overview
Early Details for Canada
12. • When: TBD
• Who: “employers”
• What: shall expected pay for the position or range of
expected pay for the position in all publicly advertised
job postings.
• Other Considerations: employers with 100 or more
employees must post their transparency reports online,
or at least in 1 conspicuous place in every workplace of
that employer. Province shall also publish transparency
reports online.
Ontario Legislation
Overview
Early Details for Canada
14. We’ve already seen Pay Transparency
bills being proposed in 2023:
Montana
Connecticut
West
Virginia
Job Ads
Job Ads
During interview process
15. What’s been the
response?
1 in 4 workers will be
covered by some form of
pay transparency
legislation in 2023 *BLS
data
Employers are being
called out for
malpractice and
loopholes
On-line trackers already
monitoring compliance
rates
Recognize the push to
best practice to post for
all job postings
irrespective of location
in the US
Leading job sites will
use algorithms to
calculate a range if you
do not post one
Impact of the cost-of-
living crisis and
employees heightened
sensitivity and anxiety
around pay
16. Your pay transparency checklist
Get buy in and commit to build transparent and consistent pay practices with a compensation
philosophy that embeds fair pay
Understand the relevant factors that impact pay in your organization and make sure this part of
your compensation philosophy
Ensure you have the job architecture and pay structures that allow for appropriate comparisons
between groups of employees
Implement pay frameworks and review where employees fall within these
Conduct proactive pay equity analysis to understand the impact of wage gaps and biases
Training managers and other stakeholders to have effective conversations with employees about
their pay