Overview
To address income disparities and employer discrimination, a growing number of jurisdictions in the U.S. have implemented salary transparency laws that require the disclosure of certain salary information during the hiring process upon request and the public disclosure of salary ranges posted in job advertisements.
With that in mind, many job boards need to address how this is exposed in a job posting from employers using their services. It has also created the need for HR tech vendors like Evolve ATS and Employ to be able to capture this salary information to provide the information necessary to the job board in their integrations and/or job distribution feeds on behalf of their customers.
Some job boards, like Indeed, supply that information in job postings regardless of whether it is provided by the employer or driven by the lay. Indeed is using its data sources to provide salary estimates without regard to the legitimacy of the actual ranges offered by the employer (if not supplied). How Indeed is capturing that salary estimate is described below.
“When a job posting doesn’t include a salary, we estimate it by looking at data for similar jobs. Estimated salaries are not endorsed by the companies offering those positions and may vary from actual salaries. Please check with the employer to confirm any salary information.” – Indeed.com
Figure 1 below shows how the disclaimer is presented on the Indeed site:
Figure 1: Indeed disclaimer
Given the continued non-standardization and ambiguity of job titles, descriptions, and requirements, compounded with the COVID-19-driven trend toward long-term work options (not city/state/province specific), this could significantly differ from what an employer would offer. Indeed is one of the most heavily used job board sources by companies, which has many employers concerned.
Below is how salary information for two job postings is displayed on Indeed. Figure 2 demonstrates how a job posting is displayed with salary information provided by the employer for the posting. Figure 3 illustrates an actual posting when an employer does not include salary information and Indeed uses its own estimate. Figure 4 demonstrates the same estimated salary shown even when a job may be offered in a specific location or may also be offered with remote or hybrid options.
Figure 2: Salary provided by employer
Figure 3: Indeed’s estimated salary when not provided by an employer
Figure 4: Indeed’s estimated salary when not provided by an employer where the role can be remote
Indeed Article on Pay Estimates and Supported Values
The following link provides additional information on how Indeed estimates pay and field guidelines if editing directly on Indeed.
https://indeed.force.com/employerSupport1/s/article/Indeed-pay-transparency-salary-estimates?language=en_US
Requirements for Postings
Pay transparency laws vary by Region, State/Province, and City, such as what and when employers must disclose it (upfront, at a particular stage if asked, or when asked).
It also is not completely clear if it is required to be in an external job posting/advertisement, on an employer’s career website, or only needs to be available at a given status in the candidate’s hiring/recruiting process or upon request. There are currently 17 states in the U.S. that have laws around pay transparency. These laws allow employees to discuss their pay freely, without fear of retaliation from their employer, but not all states require employers to provide salary ranges to candidates.
The table below shares some information for some of the jurisdictions. Employers should seek the advice of their legal counsel for their company’s decision to develop a policy around pay transparency guidelines.
City/State/ Province/Region | Required in Postings | Regulation/Requirements |
Colorado State | Yes | Beginning in January 2021, Colorado’s Equal Work Act requires employers to include the pay range and benefits in every job listing. Companies with at least one employee in the state must post pay for any remote job that could be performed in that state. |
New York City, NY | Yes (11/1/2022) | As of May 2022, employers in New York City must list the minimum and maximum salary on all job postings, promotions, or transfer opportunities. However, after pushback, it was delayed until November 2022. The law does not apply to advertisements for positions that are not required to be performed in New York City, so ads for remote positions or those for roles in other locations would not need to include salary information. |
Washington State | Yes (1/1/2023) | Washington State requires employers to affirmatively disclose in job postings a wage range, plus any other benefits or compensation to be offered, regardless of whether the applicant requests this information. The law applies to all employers working in Washington State with 15 or more employees. The new law takes effect on January 1, 2023. |
Ontario, Canada | Yes (Since 2019) | Effective January 1, 2019, the Pay Transparency Act 2018 imposes the following obligations on employers in Ontario:
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Additional Salary Disclosure Laws
The remaining states require salary disclosure when asked by the job seeker, either at any time or after a specific stage is reached (such as an interview). The list below provides the latest information, as of July 1, 2022, on additional City, State, or Country requirements where employers are required to disclose salary ranges during the hiring process or request candidates' salary history.
NOTE: Not all salary disclosure regulations state that it must be in an external job posting.
Ontario, Canada
Canadian companies based in the province of Ontario are required to share salary ranges on listings.
European Union
The EU is considering similar legislation in Ontario, Canada, later in 2022.
California
In January 2018, California’s Equal Pay Act became the first in the country to ban employers from asking applicants about their salary history. It also requires employers to disclose the pay range for a job if an applicant asks for it after an initial interview.
Cincinnati, OH
As of 2020 and per Cincinnati’s Prohibited Salary Inquiry and Use, employers in the city are banned from asking applicants about their salary history. Employers must provide a job's pay range after they’ve made an offer and if the applicant asks for it.
Colorado
Beginning in January 2021, Colorado’s Equal Pay for Equal Work Act requires employers to include the pay range and benefits in every job listing. Companies with at least one employee in the state must post pay for any remote job that could be performed in the state. Employers must also notify current employees of all promotion opportunities and keep records of job descriptions and wages.
Connecticut
Beginning October 2021, employers in Connecticut must provide the salary range if an applicant asks for it or if the employer extends an offer—whichever occurs first. Employers must also provide an employee with the pay range when they’re hired, if they change to a new position, or if they request it for their current role.
Maryland
In 2020, Maryland updated its Equal Pay for Equal Work law to ban employers from asking candidates about their salary history and require employers to disclose the pay range to applicants upon request.
Nevada
As of October 2021, Nevada employers can’t ask about salary history and must automatically provide the salary range to applicants after an initial interview, even if the applicant hasn’t asked for it.
For internal moves, employers must provide pay ranges for a transfer or promotion if an employee has applied for it, completed an interview, and requested it.
New York City
As of April 2022, employers in New York City will be required to list the minimum and maximum salary on all job postings, promotions, or transfer opportunities. The law does not apply to advertisements for positions that are not required to be performed in New York City, so ads for remote positions or those for roles in other locations would not need to include salary information.
Rhode Island
As of January 2023, the Rhode Island Equal Pay Law will require employers to provide candidates with pay range information during interviews upon request. Employers must disclose the range for a role before they discuss compensation.
Employers must disclose the salary range when an employee moves into a new position. Workers can also ask their employers for the salary range of their current role.
Toledo, Ohio
Beginning in 2020, Toledo’s Pay Equity Act states that employers in the city are prohibited from asking applicants about their salary history. Employers must provide the pay range on a job after they’ve made an offer and if the applicant asks for it.
Washington State
In 2019, Washington amended its Equal Pay and Opportunities Act to say employers must provide the minimum and maximum pay range for a job after they’ve made an offer and if the candidate asks for it.
Employers must provide the range for an internal transfer or promotion to existing employees if the employee asks for it. If a scale or range doesn’t exist, the employer must provide the employee with the minimum salary expectation, which must be set before posting, making a position transfer, or making the promotion.
Washington State amended its Equal Pay and Opportunity Act to require employers to affirmatively disclose in job postings a wage range, plus any other benefits or compensation to be offered, regardless of whether the applicant requests this information. The law applies to all employers in Washington with 15 or more employees. The new law took effect on January 1, 2023.
Additional Anticipated Pay Transparency Laws
So far, more Bills are being considered in states such as Massachusetts, South Carolina, and New York.
At the federal level, the Equal Pay Act of 1963 bans pay discrimination based on sex. But decades later, employer pay practices continue to create gender and racial wage gaps. Lawmakers have tried to strengthen fair pay laws through the Paycheck Fairness Act, but little progress has been made since it was introduced in 1997. The House reintroduced and passed the legislation last spring, but the Senate failed to advance it.
Additional Resources – U.S. Pay Transparency Laws (Jan. 2022)
In January 2018, California’s Equal Pay Act became the first in the country to ban employers from asking applicants about their salary history. It also requires employers to disclose the pay range for a job if an applicant asks for it after an initial interview.
General Approaches to Support Regulations
Approach | Pros | Cons |
Method 1: Enter salary information in Job Description | The employer controls this and can be tailored and changed as needed based on specific regulation changes. The approach would be universally available with little to no technology configuration changes by the employer or the vendor. |
Requires manual or batch update of job descriptions, leading to errors and inconsistencies. Also, this method relies on the parsing/extraction capabilities of individual destinations (job boards, other ad targets, and career websites) to include the information and make it consistently searchable or displayable outside of the full text of the job description. For these reasons, this approach is not generally recommended unless the job volume is very low. |
Method 2: Provide fielded salary range as a single field | The employer can also control this approach and can be applied on an as-needed basis. |
While the approach isolates the data to a field, it may require the employer and/or the vendor to update configurations and integration points to support it. Again, it may not be usable in individual destinations that require a “low-to-high” range or offer a ranged salary search capability. While better than incorporating the text in line with the job description, this method still has limitations that should be considered before using it, specifically in higher volume cases. |
Method 3: Provide fielded salary information for min, max, and optionally mid, along with a designation of annual, hourly, or other pay type |
The employer can also control this approach and can be applied on an as-needed basis. This method offers the most flexibility and futureproofing for pay information at any volume. It allows you to dynamically assemble the pay range as needed (salary, hourly, or other) and use the fielded data as needed to express pay. |
While this method is just as likely to require potential configuration and/or integration changes by the employer and vendor, it is considered the most flexible and best practice. |
Evolve Product Support
Product | Support Options |
Evolve ATS | Standard support for Methods 1,2, and 3 with Method 3 strongly recommended as a best practice. |
Recruitment Marketing | Standard support for Methods 1,2, and 3 with Method 3 strongly recommended as a best practice. |
Evolve Suite | Standard support for Methods 1,2, and 3 with Method 3 strongly recommended as a best practice. |