While we did not see any new states propose pay transparency laws in May, we did see a few finally pass their proposed pay transparency legislation.
Hawaii
On May 4, 2023, the Hawaii legislature passed SB1057. We anticipate that Governor Josh Green will sign this bill into law, which would take effect on January 1, 2024.
In case you missed it, we published a detailed blog post on this legislation. Click here to find out all the details of the passed pay transparency law in Hawaii.
Illinois
On May 17, 2023, the Illinois legislature passed SB2038, which is pay transparency legislation. While we are still waiting for Governor J.B. Pritzker to sign the legislation into law, we wanted to provide you with an update on what to expect when the law goes into effect on January 1, 2025.
In case you missed it, we published a detailed blog post on this legislation. Click here to find out all the details of the passed pay transparency law in Illinois.
British Columbia, Canada
On May 11, 2023, British Columbia’s Bill 13-2023: Pay Transparency Act received Royal Assent, becoming law with an effective date of November 1, 2023. The act has three parts: pay transparency in job postings, salary history bans, and pay transparency reporting.
Beginning November 1, 2023, employers in British Columbia will be required to post a salary or salary range on all job postings, and they will not be able to ask candidates about their salary history during the interview process. Additionally, British Columbia will start rolling out pay reporting requirements in November. If you want more information on these new requirements, check out our detailed blog post about the new law.
In case you missed it:
- The European Union Pay Transparency Directive (the “Directive”) was published in the Official Journal on May 17, 2023, meaning that all 27 Member States will have until June 6, 2023, to pass their own individual laws to comply with the Directive.
- Minnesota became the 22nd state to pass a salary history ban, which will take effect on January 1, 2024.
Payscale’s pay transparency solution
At Payscale, we believe in helping our customers approach pay transparency with confidence. We do this by:
- Understanding their competitive landscape and determining a strong data strategy
- Evaluating current employee pay against the market to ensure competitive and fair compensation across the organization
- Implementing standardized and scalable practices with job architectures and salary ranges
- Providing an added layer of confidence to pay transparency practices by offering technology and resources focused on pay equity analysis, job description management, compensation planning, and effective communications about pay
Learn more about how Payscale can help your organization achieve pay transparency.
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 and Senior Corporate Attorney–Employment Lulu Seikaly as they discuss how to infuse transparency into your salary ranges.
