Business and Legal Insights

There is a growing trend of local jurisdictions enacting pay transparency laws which require employers in those jurisdictions to provide compensation information to job applicants and employees. The uptick in remote work arrangements over the last few years has effectively extended the reach of such local pay transparency laws to apply extraterritorially to applicants or employees working from home in other jurisdictions.

For example, New York City’s pay transparency law, which went into effect in November 2022, requires employers to include a good faith pay range in all job advertisements and applies to jobs that could be performed in New York City’s jurisdiction so long as at least one employee already works in that jurisdiction.

Similarly, Colorado’s pay transparency law, which went into effect in January 2021, applies to employers who have at least one employee in Colorado and requires such employers to include in each job posting (1) the rate or range of compensation; (2) a general description of any bonuses, commissions, or other compensation; and (3) a general description of all benefits the employer is offering for the position. Colorado’s pay transparency law applies to “work capable of being performed in Colorado, including remote work…”

Likewise, California’s pay transparency law, which went into effect in January 2023, applies to employers with at least 15 employees so long as one employee is located in California. California issued guidance on how the law affects remote work situations which provides: “pay scale must be included within the job posting if the position may ever be filled in California, either in-person or remotely.”

Further, Washington’s pay transparency law, which went into effect in January 2023, applies to employers with at least 15 employees so long as one employee is located in Washington. Washington issued guidance on the law’s interaction with remote work situations which provides: “Employers must disclose a wage scale or salary range and a general description of benefits and other compensation on postings for remote work that could be performed by a Washington-based employee. … An employer cannot avoid disclosing wage and salary information requirements by indicating within a posting that the employer will not accept Washington applicants.”

Businesses in Florida could be affected if they post about jobs that could be filled by someone working remotely in those specific jurisdictions with laws requiring pay transparency.

While there currently is no federal law specifically requiring employers to include salary information on job postings, employers should note that the National Labor Relations Act (“NLRA”) allows employees to discuss the terms and conditions of their employment, including compensation information, and protects them from retaliation for those activities. Employers should carefully review any potentially applicable local pay transparency laws to ensure compliance and promptly consult their employment law counsel for advice or clarification.