What Do The Latest Pay Transparency Laws Really Mean For On-Site And Remote Workers?

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Hawaii is the latest state to introduce pay transparency laws, while Colorado has expanded its already pretty comprehensive laws to include concrete definitions on career development and progression, as well as criteria for the latter. 

Both came into effect from January 1st, as numerous states continue to work towards reducing pay inequality. 

Since California introduced pay transparency legislation in 2018, a number of states have followed suit, including Maryland, Washington, Ohio, Connecticut, Nevada, New Jersey, Illinois, Maine, Rhode Island, New York, Massachusetts and Michigan.

Though laws introduced in each state vary considerably. In some states, like Hawaii, the law only applies to employers with over 50 employees, while in Colorado, employers with at least one employee working from the state must comply. 

Despite a shaky start to true transparency, with some laughably wide wage scales included in job advertisements, things are improving as each iteration of laws gets tighter and tighter. 

Remote workers

However, things get complicated when it comes to remote working. If you’re remote working from the state where the laws apply but your employer is in a state without pay transparency laws, what happens? 

Again, it depends state to state. Some states’ legislation isn’t very clear, though California, Colorado, Illinois, New York, and Washington’s are.

If you’re in Colorado, working for an organization that only has physical locations outside Colorado, and you’ve fewer than 14 colleagues in Colorado, then your employer is exempt. 

While in Illinois and New York, the law applies if any part of your job is performed physically in the state, or you report to a manager, office or work site within the state.

In California, employers must disclose salary information for remote jobs if they have at least 15 employees, with at least one working in the state.

Laws are a real patchwork at the moment, so job seekers would do well to look into the specifics in each state they are applying to and from, if pay scales are missing from job descriptions

Further change is on the horizon. Should the Salary Transparency Act and Pay Equity for All Act pass, it will require all U.S. employers to disclose wage ranges, but until then employers and job hunters need to navigate the murky legal waters of differing state legislation solo. 

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