In recent times, numerous states and localities have enacted Equal Pay Transparency (EPT) laws, potentially influencing the PERM (Program Electronic Review Management) process for employers engaged in labor market testing within these jurisdictions. EPT regulations vary across locations, with some mandating the inclusion of salary information in job postings, while others require disclosure upon request at the time of a job offer.
Here are the key updates and impending changes regarding EPT laws in various states and cities:
Cincinnati, Ohio: Employers with 15 or more employees, including referral and employment agencies, must furnish wage ranges to job applicants upon reasonable request after extending a conditional offer of employment. This rule has been effective since March 1, 2020.
Maryland: Wage Range Transparency Act will require employers to disclose certain wage information in both public and internal job postings – effective October 1, 2024.
Colorado: All employers in Colorado must disclose hourly or salary compensation, along with benefits, in job postings since January 1, 2021. The disclosed range may reflect the lowest to highest potential compensation the employer deems feasible at the time.
Connecticut: Employers must furnish pay ranges to job applicants either upon request or before extending a job offer, effective October 1, 2021. Additionally, employees are entitled to pay range information upon hiring, position changes, or upon request.
Hawaii: effective Jan. 1, 2024 – Employers must include a salary range or hourly wage rate in job postings that accurately reflects what they expect to pay for the role. This applies to employers with at least 50 employees.
Illinois: Employers with at least 15 employees must include the wage scale they reasonably expect to pay for a position in the job posting.
Massachusetts : Employers with 25 or more employees must disclose salary range information on job postings. This pay disclosure requirement also applies to promotions and transfers. The scheduled effective date for this law is July 31, 2025.
Minnesota : Employers with 30 or more employees – Beginning Jan. 1, 2025, job postings must include a “starting salary range” for the opening.
Nevada: Employers in Nevada must disclose pay ranges to job applicants post-interview, as well as to employees applying for promotions or transfers. This requirement has been in effect since October 1, 2021.
Jersey City, New Jersey: Employers with 5 or more employees in Jersey City must include salary ranges in job postings since June 15, 2022, detailing minimum and maximum compensations for each opportunity.
New Jersey: Employers with 10 or more employees will require compensation transparency in job postings for internal and external positions in New Jersey. The law takes effect on June 1, 2025.
New York: Effective 9/17/2023, New York State employers with 4 (four) or more employees must include a salary or salary range in their job postings for all jobs to be performed, at least in part, in the state of New York.
California: As of January 1, 2023, employers with 15 or more employees must include pay ranges in job postings, while all employers must disclose pay ranges upon request.
Rhode Island: Effective January 1, 2023, Rhode Island mandates employers to provide pay ranges to job applicants before discussing compensation.
Vermont : Effective July 1, 2025, employers with 5 or more employees in Vermont will have to list minimum and maximum ranges for annual salaries or hourly rates – and those ranges must be “good faith” estimates in job postings.
Washington State: From January 1, 2023, onwards, employers with 15 or more employees in Washington State must disclose wage scales and benefits in job postings.
Washington, DC:In early March 2024, Washington, D.C. passed a new law that amended a previously existing and much narrower law relating to wage transparency. Under it, employers must provide the minimum and maximum projected hourly pay or salary in all job listings and position descriptions advertised.
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These changes have implications for the PERM process, particularly in labor market testing conducted before prevailing wage determinations (PWDs). While PERM regulations don’t mandate wage disclosure in all recruitment activities, compliance with both PERM and EPT regulations is essential. Employers navigating these complexities should seek guidance from local employment counsel to ensure adherence to EPT rules.
For queries regarding the PERM process, feel free to reach out to Ad Club Advertising today!
