Happy New Year! To kick off 2023, we’ve decided to start bringing you monthly posts outlining pay legislation that has been recently proposed or passed along with a description of how each might affect your organization. While we thought that 2022 was “The Year of Pay Transparency,” it seems that it won’t be much quieter in 2023. Here’s what has happened in January by state:
Connecticut
On January 12, 2023, the Connecticut State House proposed HB 5423. If passed, this bill would require employers to disclose salary ranges in all job postings. This was the only information provided in the bill so far, so stay tuned for further amendments and clarifications before this proposed law is called for a vote.
Hawaii
On January 20, 2023, SB1057 was proposed in the Hawai’i State Legislature. If passed, this bill would require employers to include an hourly or salary range “reasonably reflecting the actual expected compensation” in all external job postings. The proposed bill does include an exception for public employees and for internal transfers and promotions. If passed, this requirement would take effect on January 1, 2024. To date, the bill does not state exactly which employers it would apply to, but the legislature will likely clarify that in the coming months.
Massachusetts
On January 26, 2023, the Commonwealth of Massachusetts proposed HD.2814. If passed, the bill would require employers with 15 or more employees employed in Massachusetts to post the salary range for jobs in job postings. This would also require employers to provide the pay range to employees who are offered a promotion or a transfer to a new role.
In addition, SD.1698 was also proposed. If passed, employers with 100 or more employees in Massachusetts would be required to file a report with the Executive Office of Labor and Workforce Development (“EOLWD”) specifying the race and gender ratios of employees in senior positions by April 1 of each year. Senior positions include but are not limited to Vice President (“VP”), Executive VP, Assistant VP, General Manager, Regional Manager, Division Manager, Manager, Director, Assistant Director, and C-level officers. If an employer’s ratios are found to be below the ratio of women or minorities in the labor force within the same metropolitan statistical area, they may apply to the “Pipeline Promotional Opportunities Fund.” This would allow employers to get funds to pay for professional development and coaching services to enhance their employees’ prospects for promotions where the promotions would advance gender and/or racial parity in the employer’s leadership.
Montana
On January 11, 2023, SB 146 was proposed in the Montana state Senate. If passed, this bill would require employers with 15 or more employees to disclose a salary or hourly amount or range in all job postings. Like Colorado and Washington’s pay transparency laws, this bill would also require employers to post a general description of benefits and other compensation offered. The bill is in its early stages, so we don’t know whether it would apply only to employers in Montana or to any employers who seek remote workers in general.
South Dakota
On January 25, 2023, SB109 was proposed in the South Dakota State Senate. If passed, a private employer with 100 or more employees would be required to post a salary range and a general description of all benefits and other compensation to be offered upon hire, promotion, or transfer. Additionally, this law would require employers to keep a history of ranges of compensation for each job, promotion, or transfer opportunity and associated job descriptions for the duration of employment.
Tennessee
On January 24, 2023, HB0417/SB0383 was proposed in the Tennessee General Assembly. If passed, this bill would prohibit employers from asking candidates about their salary history. While it’s not a pay transparency bill, salary history bans have also been passed all over the country to prevent employers from using that information to formulate an offer, so it falls in line with similar changes in other states. Salary history bans, like pay transparency laws, are intended to help close the gender pay gaps.
Vermont
On January 26, 2023, the Vermont State House proposed H.116. If passed, the bill would require employers to disclose the pay scale for roles to applicants and to employees who currently hold those roles. It is unclear how employers must disclose the pay scale, and it is also unclear which employers this will apply to.
In addition, this bill would require employers with ten (10) or more employees to annually submit a report to the Vermont Department of Labor. This report must include the compensation paid to their employees, which must be broken down by gender and race. The Vermont Department of Labor will then be required to publish that information on its website for public access.
West Virginia
On January 17, 2023, HB 2626, also known as the “Katherine Johnson and Dorothy Vaughan Fair Pay Act,” was proposed in the West Virginia House of Delegates. If passed, this bill would require employers to provide information about pay, benefits, and other compensation to candidates who ask for it. The bill also makes clear that employers cannot retaliate against applicants who request this information.
West Virginia also proposed a “salary history ban,” which we’ve already seen enacted in a handful of states. If passed, employers in West Virginia would not be legally allowed to ask candidates about their current or prior salary.
In case you missed it:
- December 21, 2022: Governor Hochul signed New York State’s Pay Transparency bill into law, which will come into effect on September 17, 2023. Read more about it here.
- California clarifies its newly enacted Pay Transparency law. Read more about it here.
Want to learn more from our experts?
- Check out the most recent episode of our pay legislation webinar series. Join Payscale’s Chief Product Evangelist Ruth Thomas, Senior Corporate Attorney-Employment Lulu Seikaly, and McGuire Woods LLP’s Compensation Analyst Imad Mahmood as they discuss how to prepare for emerging pay transparency legislation in the new year.
