Pay Transparency Checklist

Pay transparency is when an employer openly communicates pay-related information to current or prospective employees through established practices. Because of changing labor markets and a desire to be paid fairly, more employees are demanding pay transparency. As this demand increases, some states have passed legislation requiring organizations to be transparent. In recent years, California, Colorado, Connecticut, Maryland, Nevada, Rhode Island and Washington have all passed pay transparency laws. Some cities, including New York City, Jersey City, New Jersey, and Cincinnati, Ohio, have also passed such laws. Employers should be aware that pay transparency laws vary depending on the jurisdiction.

It’s becoming increasingly clear that providing pay transparency is not a temporary trend; therefore, employers may be considering implementing policies into their operations. However, employers should consider the applicable rules and regulations related to pay transparency in their jurisdiction. Additionally, hiring remote workers can trigger pay transparency obligations and create potential risks even in states where employers do not have a physical presence. Even if an employer is in a jurisdiction that may not require pay transparency, it may be beneficial to provide pay-related information to attract talent since employees and applicants are more frequently demanding it.

Overview

This checklist outlines the steps for establishing pay transparency practices. It’s intended to be used as a guide, and not all of the following steps may be necessary to create and manage pay transparency practices. Therefore, the steps in this list should be modified to meet any jurisdictional requirements as well as the unique need of your organization. Employers are encouraged to seek legal counsel to address specific issues and concerns.

Successful pay transparency practices will differ based on the unique needs of an organization and applicable legal requirements. Regularly evaluating pay transparency practices and processes can help organizations ensure compliance with applicable state and local laws and strengthen attraction and retention efforts. It can also help organizations identify any gaps in their processes and adjust to avoid incurring costly fines and penalties or losing key talent.

Contact TechServe Alliance today for more information about pay transparency.