Everything Small Businesses , Need to Know About New , Pay Transparency Laws.
'The Independent' reports that eight states in
America have instituted pay transparency laws,
and several others are considering similar legislation.
While these laws mainly take aim
at large corporations, here are some
things small businesses should know.
1. Which businesses must comply, While it varies between states and localities,
states that must comply with the new
laws must have a certain number of employees.
In Washington state, any business with
over 15 employees must disclose information
regarding pay in all job postings. .
In New York, the magic number
is four or more employees.
2. What are the penalties?, Currently, monetary penalties are
assessed per violation and can range
from hundreds to thousands of dollars.
3. How to comply with the new laws, 'The Independent' reports that companies are required to
post a "good faith" salary range for the role in the job posting.
According to Marina Vitek, a mentor at SCORE, for companies
that don't post job openings, the obligation to provide pay
information is upon request by a candidate or employee.
'The Independent' points out that taking inventory of internal
pay structures is crucial before posting pay information
to avoid potential conflict with current employees.
'The Independent' points out that taking inventory of internal
pay structures is crucial before posting pay information
to avoid potential conflict with current employees.
Jim Emanuel, a human resources knowledge adviser at the
Society for Human Resource Management, recommends
keeping up-to-date information to reference prior to hiring.