Recently, a wave of states and local jurisdictions—including California, Colorado, New York, and Washington, have passed pay transparency laws with varied requirements for employers. In addition, a significant number of other jurisdictions, including Kentucky, Massachusetts, Missouri, and South Carolina, have introduced pay transparency legislation that may result in additional obligations for employers.
The goal of the various pay transparency laws is to promote equal pay by requiring employers to disclose the pay range for positions in job postings. In theory, such transparency should preclude employers from paying employees in protected categories, such as age, gender, and race, wage rates that are lower than the rates paid to employees outside of the protected classes for substantially similar work.
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