The cherry blossoms are finally blooming in Washington, D.C., marking the beginning of spring. As we enter this new season, we aren’t seeing any signs of pay transparency legislation slowing down.
In case you missed it, Payscale’s Compensation Best Practices Report (CBPR)) was also just released. In the report, a majority of organizations (60%) say they are including salary ranges in job postings, up from 45% last year. While this may seem obvious, since roughly one in four employers are now subject to some sort of pay transparency law, many organizations (39 percent, according to the CBPR) have started posting salary ranges regardless of legislative requirements.
When it comes to these requirements, however, there were several new developments in March.
Maryland
On March 29, 2024, the Maryland General Assembly passed HB0649. It now heads to Governor Moore’s desk for signature, and we believe he will sign it. If so, 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.). We will provide an update as to whether the governor does sign this bill.
Michigan
On March 21, 2024, the Michigan State House introduced HB 5619. If passed, Michigan employers would be required to post “salary information, including the pay scale, if any.” It is currently unclear which employers this would apply to and what “salary information” would have to include.
Tennessee
Back in January 2023, the Tennessee General Assembly introduced HB 0417. If passed, this bill would prohibit employers from asking a candidate about their prior wages (e.g., a salary history ban). Since January 2023, this bill had been in limbo — until March 6, 2024, when it started moving through committee.
Virginia
At the end of February 2024, the Virginia General Assembly passed HB990, which includes a pay transparency requirement and a salary history ban. While the bill flew through the Virginia General Assembly, Governor Youngkin vetoed it on March 14, 2024. Unfortunately, for now, this bill will not go anywhere.
Washington, D.C.
At the end of February 2024, the Virginia General Assembly passed HB990, which includes a pay transparency requirement and a salary history ban. While the bill flew through the Virginia General Assembly, Governor Youngkin vetoed it on March 14, 2024. Unfortunately, for now, this bill will not go anywhere.
On March 15, 2024, Washington, D.C.’s pay transparency bill was finalized. Beginning June 30, 2024, B25-0194 will require employers with at least one employee working in Washington, D.C. (not including federal or District employees) to do the following:
- Post the minimum to maximum salary/hourly wage that the employer in good faith believes they’ll pay for a role in all job listings, promotions, or transfer opportunities;
- Inform the candidate before the first interview that the employer will provide healthcare benefits (if applicable) if they are selected for the role; and
- Refrain from asking a candidate about their prior wages (e.g., salary history ban).
We are still keeping an eye on the following proposed pay transparency laws in 2024:
- Maine
- Maryland
- Massachusetts
- Minnesota
- Missouri
- New Jersey
- Pennsylvania
- Vermont
- Wisconsin
Payscale will be closely following the progress of these bills.
If you’re a podcast listener, check out the conversation I had with Hebba Youseff on the “I Hate it Here” podcast. In S3 E10: Demystifying Pay Transparency, we talk about Gen Z, talent retention, workforce trends and how pay transparency is impacting all of it. Listen here on Spotify or wherever you get your podcasts.
