Pay transparency laws became effective in three states at the start of 2023 building on a multi-year trend.
On January 1 of this year, new pay transparency laws went into effect in California, Rhode Island and Washington. Also, a New York law is set to become effective in September. These states add to the growing list of jurisdictions to enact pay transparency laws over the past several years. The new transparency laws follow the generally established model, varying only slightly, such as the minimum size employers covered by the law and the range of available remedies.
The pay transparency laws for select jurisdictions are summarized on the attached table (which has been updated since our last Client Update on this topic).
We anticipate that more jurisdictions will enact pay transparency laws this year and over the next several years.
Companies should assess whether their wage scales or salary ranges are in place for every job position to comply with transparency laws when those positions are posted.
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The Client Update is prepared by Meridian Compensation Partners’ Governance and Regulatory Team co-led by Donald Kalfen and Ron Rosenthal. Questions regarding this Client Update or executive compensation technical issues may be directed to Donald Kalfen at 847-235-3605 or dkalfen@meridiancp.com or Ron Rosenthal at 847-235-3621 or rrosenthal@meridiancp.com.
This report is a publication of Meridian Compensation Partners, LLC, provides general information for reference purposes only, and should not be construed as legal or accounting advice or a legal or accounting opinion on any specific fact or circumstances. The information provided herein should be reviewed with appropriate advisors concerning your own situation and issues.
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