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Webinar - Pay Transparency Legislation Series, Ep. 5

Director of Demand Generation at PayScale, Inc. um PayScale, Inc.
26. Jan 2023
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Webinar - Pay Transparency Legislation Series, Ep. 5

  1. Pay Transparency Legislation Series, Ep. 5: Preparing for the New Year
  2. Today's Presenters: Ruth Thomas Chief Product Evangelist Payscale Lulu Seikaly Senior Corporate Attorney- Employment Payscale Imad Mahmood Compensation Analyst McGuireWoods
  3. Today's Agenda • A pay transparency legislation overview for certain U.S. states and Canada • What to expect in the new year & how to respond • McGuireWoods pay transparency journey
  4. Poll Question 1 : Do you currently share pay ranges in job postings? A. No, we do not do this currently B. We are working on this C. We only share ranges for locations where we are required D. We do this for all locations E. I am not sure
  5. A Pay Transparency Legislation Overview
  6. Where and when is pay transparency legislation happening? Jan. 1, 2021 Colorado State (Job Ads) April 13, 2022 Jersey City, NJ (Job Ads) Sept. 1, 2022 Ithaca, NY (Job Ads) Nov. 1, 2022 NYC, NY (Job Ads) Nov. 6, 2022 Westchester County, NY (Job Ads) Jan. 1, 2023 Washington State (Job Ads) Jan. 1, 2023 Rhode Island (Interview) Jan. 1, 2023 California (Job Ads) September 17, 2023 New York State (Job Ads)
  7. Washington Legislation Overview Effective: January 1, 2023 • Who: employers with 15 or more employees, with at least 1 working in Washington • What: shall include pay scale (hourly or salary) for a position in any job posting and general description of benefits • Proposed Penalties: civil action for violations—greater of actual damages or $5,000 plus interest, costs, and reasonable attorney’s fees. • Other considerations: additional pay reporting requirements
  8. California Legislation Overview Effective: January 1, 2023 • Who: employers with 15 or more employees, with at least 1 working in California • What: shall include pay scale (hourly or salary) for a position in any job posting that can be performed in California • Commission? Must be included for roles that are paid wholly or in part on commission • Proposed Penalties: between $100 and $10,000 per violation • Record Keeping Obligations: maintain records of job title and wage rate history for each employee for 3 years post employee's employment • Other considerations: additional pay reporting requirements and DOL guidance
  9. Effective: September 17, 2023 • Applies to employers with 4 or more employees, with at least 1 working in NY state • Internal and external job postings for applicants and employees that “can or will be performed, at least in part, in the State of NY.” • Penalties up to $3,000 for failure to comply • What must the posting include: • Actual compensation or range of compensation • Good faith standard • Job description (if a description exists); and • General description of other comp offered New York State Legislation Overview
  10. Canada • When: June 1, 2022 • Who: “employers” • What: shall expected pay for the position or range of expected pay for the position in all publicly advertised job postings. Prince Edward Island Ontario • When: TBD • Who: “employers” • What: shall expected pay for the position or range of expected pay for the position in all publicly advertised job postings. • Other Considerations: employers with 100 or more employees must post their transparency reports online, or at least in 1 conspicuous place in every workplace of that employer. Province shall also publish transparency reports online.
  11. • When: June 1, 2022 • Who: “employers” • What: shall expected pay for the position or range of expected pay for the position in all publicly advertised job postings. Prince Edward Island Legislation Overview Early Details for Canada
  12. • When: TBD • Who: “employers” • What: shall expected pay for the position or range of expected pay for the position in all publicly advertised job postings. • Other Considerations: employers with 100 or more employees must post their transparency reports online, or at least in 1 conspicuous place in every workplace of that employer. Province shall also publish transparency reports online. Ontario Legislation Overview Early Details for Canada
  13. What to Expect in 23
  14. We’ve already seen Pay Transparency bills being proposed in 2023: Montana Connecticut West Virginia Job Ads Job Ads During interview process
  15. What’s been the response? 1 in 4 workers will be covered by some form of pay transparency legislation in 2023 *BLS data Employers are being called out for malpractice and loopholes On-line trackers already monitoring compliance rates Recognize the push to best practice to post for all job postings irrespective of location in the US Leading job sites will use algorithms to calculate a range if you do not post one Impact of the cost-of- living crisis and employees heightened sensitivity and anxiety around pay
  16. Your pay transparency checklist Get buy in and commit to build transparent and consistent pay practices with a compensation philosophy that embeds fair pay Understand the relevant factors that impact pay in your organization and make sure this part of your compensation philosophy Ensure you have the job architecture and pay structures that allow for appropriate comparisons between groups of employees Implement pay frameworks and review where employees fall within these Conduct proactive pay equity analysis to understand the impact of wage gaps and biases Training managers and other stakeholders to have effective conversations with employees about their pay
  17. McGuireWoods Journey to Pay Transparency
  18. Imad Mahmood Compensation Analyst Welcome to our customer!
  19. Q&A Feel free to ask any questions in the chat!
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