Be careful you don’t inadvertently violate other states’ wage transparency laws

Recently, in the first of a series of articles focusing on companies’ online employment recruitment practices, we wrote about a company’s need to consider what states require an employer to include (or prohibit an employer from including) in a job application that is made available online to residents of states other than Massachusetts (see “Companies’ online recruiting should comply with other state laws”). Here, we will address another hot topic in employment law—pay transparency and potential liability for noncompliance with other states’ laws.

What is pay transparency?

Several states, including Connecticut and New York, have passed laws that require employers to be transparent to applicants and potential applicants when advertising for a job opening. And many other states—including Massachusetts—have pay transparency legislation pending.

Making it more complicated for employers is the fact that states have different requirements when it comes to pay transparency, such as what must be disclosed, when disclosures must be made, and by what method. In general, however, pay transparency laws require employers to disclose salary ranges in job advertisements and/or during interviews. So, what happens when you post a job opening online?

Massachusetts Equal Pay Act