MUM’S NO LONGER the WORD
Maneuvering pay disclosure across the country
Written by ROBERT SARKISIAN & COREY DAY
T
his year is quickly becoming known as the beginning of the pay transparency movement. States across the country have begun adopting laws that require employers to provide specific compensation information in any job posting, either through the employer’s own website or a third-party job board, such as LinkedIn or Indeed. Whether your distillery consists of a tight team all located in your state, or you have employees spread across the nation, this trend requires your attention. To compete for talent, you’ll need to know how pay transparency laws are changing job postings nationally. More importantly, you’ll need to understand these laws exist to ensure compliance and avoid liability. Colorado was the first state to enact major pay disclosure legislation. On January 1, 2021, Colorado required all employers with at least one employee in Colorado to affirmatively list applicable salary ranges in job postings for all prospective applicants, as well as notify current employees of promotional opportunities. Many states, including California, New York, and Nevada, followed in Colorado’s footsteps in enacting or expanding their own pay disclosure legislation. Employers who are found in violation of these laws may be hit with steep penalties, in some cases up to $10,000. Given the growing list of states joining the pay disclosure movement, inconsistencies and ambiguities in these laws are becoming more prevalent, especially for employers that operate in more than one state. For example, the COVID-19 pandemic opened up the possibility for some employers to hire employees that are fully W W W . ARTISANSPIRITMAG . C O M
remote and may work anywhere in the country. When an employer operating in a pay disclosure state posts a job that may be remote-only and is not limited to in-state applicants, the thinking may be that salary information need not be included given the position is not “located” in the state. However, some states have taken the position that if there is “any” chance the position can be filled by an employee in the employer’s state that pay information needs to be included. This has already proved to be a headache for companies operating in multiple states. For instance, some states mandate that any company with at least one employee in the state must include salary information if the position can potentially be filled by an employee within that state. Now companies operating in multiple states must analyze whether there is a chance, no matter how slim, that the position may be filled by an individual living in a state with strict pay disclosure laws. Whether to include salary information in the first place is not the end of the battle. As described above, some states vary on what they consider to be “salary information.” For instance, while thought to be the first mover in the pay disclosure space, Colorado took a more cavalier approach and required that employers not only include base salary in their postings, but to also include any relevant bonus, commission, or benefit information that supplements base pay. This adds another consideration for employers that operate in multiple states when posting a job that may be filled in a pay disclosure state. 37