Trends in State Pay Equity Laws
In recent years, pay equity and salary transparency have been prominent issues for legislators and employers. Four years ago, on July 1, 2018, the updated the Massachusetts Equal Pay act took effect. The law was one of the first in the country to ban all employers from asking job applicants how much they made at their last job. Since then, many states have followed suit, passing their own pay equity laws.
The latest trend in legislation promoting pay equity are disclosure laws that require employers to provide salary ranges for open positions. Connecticut and Rhode Island both passed pay scale disclosure laws in 2021. In Connecticut the law took effect on October 1, 2021, and the Rhode Island law will go into effect on January 1, 2023.
While the laws may seem similar, there are differences that employers need to be aware of. For example, the laws each have their own definition of the term “wage range” and mandate different timing for when in the hiring process the pay scale disclosure is required. Due to these differences, employers with employees in both Connecticut and Rhode Island should be careful when creating a uniform policy to comply with these laws.
With similar bills introduced in other states, including Massachusetts, all employers should pay attention to this emerging trend and take stock of their own pay practices.
If you have any questions regarding Pay Equity legislation or related issues, please do not hesitate to contact the attorneys at The Royal Law Firm, LLP.
