To quote the movie “Miss Congeniality,” the perfect date is April 25 “because it’s not too hot and not too cold. All you need is a light jacket.”
Some of us are still wearing coats, some have pulled out our umbrellas, and some are wearing light jackets, but pay transparency legislation has yet to slow down. Here are some updates from the past month.
Maryland
On March 29, 2024, the Maryland General Assembly passed HB0649, and on April 25 (“the perfect date”), Governor Wes Moore signed Maryland’s pay transparency bill into law. Maryland will join Colorado, Washington, California, New York state, Hawaii, and Washington, D.C. in requiring employers to include salary ranges in job postings.
Beginning October 1, 2024, employers will be required to post a “good faith” salary range or the budgeted amount for any roles that must be performed, at least partly, in the state of Maryland.
If employers refuse to comply, Maryland has implemented fines up to $600 per violation (e.g., per person who has seen the job posting, per job posting, etc.).
Maine
After almost a year of no legislative movement, Maine is on the fast track to pass its own pay transparency law. If passed, LD 936 would require employers with 10 or more employees to post “the range of pay the employer will offer to a successful applicant.” Employers with fewer than 10 employees must provide the pay range if an applicant asks for it. All employers must disclose the range of pay for a current employee if they ask for it.
This bill would also require employers to maintain a record of each role and the payment history of each employee for the duration of the employee’s tenure with the organization — and for three years after they leave. This requirement is the same one that California now imposes on employers.
Wisconsin
On April 19, 2024, Wisconsin’s pay transparency bills failed to pass the Wisconsin Senate and the Wisconsin Assembly. However, we are still waiting to see whether AB538, Wisconsin’s salary history ban, will pass the Wisconsin Assembly.
New Jersey
While the New Jersey State Senate introduced a pay transparency bill in January 2024, the New Jersey State Assembly introduced its own pay transparency bill, A4151, on April 4, 2024.
If passed, A41151 will apply to employers who have 10 or more employees, do business in New Jersey, and take applicants for employment in New Jersey. (It seems that this bill will apply to remote job postings as well.) Employers will be required to post an hourly or salary range and a list of other compensation. In addition, employers will be required to make reasonable efforts to announce, post, or otherwise make known opportunities for promotion internally and externally.
The New Jersey bill adds penalties for failure to comply. Employers who fail to comply may be subject to a $1,000 penalty for the first violation, $5,000 for the second violation, and $10,000 for each subsequent violation.
In case you missed it…
Several states are also proposing laws regulating the use of artificial intelligence (AI) and automated decision-making tools (ADTs) in the application and interview processes. Some states to keep an eye on include California, New Jersey, and New York.
California’s proposed law, AB2930, emphasizes the importance of fair and transparent practices, safeguarding against biased decision-making, and ensuring compliance with legal standards. If passed, employers who use these tools would be required to perform impact assessments before initial use and annually after. It would also require employers to notify individuals (namely, job candidates) that ADTs are being used and allow them to use an alternative if they so choose.
New Jersey’s proposed law, S3015, would require employers to notify applicants before using AI for video analysis during interview explain AI’s role in the process, and obtain consent to use it. This bill would also prohibit the use of AI without consent, restrict the right to share an applicant’s video, require data collection for demographic analysis, and impose civil penalties for violations. New Jersey also proposed S2964, which would establish standards for the independent bias auditing of ADTs used in making employment decisions.
New York has two proposed laws surrounding AI and ADTs. A09315A would prohibit employers from using electronic monitoring or ADTs to screen a candidate or employee for an employment decision unless the tool has been subjected to a public bias audit. The second proposed bill, A09314, would establish criteria for the sale of ADTs — including restrictions on its use in employment decisions — and require an impact analysis to be conducted annually.
We are still keeping an eye on proposed pay transparency laws in the following states in 2024:
- Maine
- Maryland
- Massachusetts
- Minnesota
- Missouri
- New Jersey
- Pennsylvania
- Vermont
Payscale will be closely following the progress of these bills.
