Diversity & Equity Trends – Pay Transparency
The State of California pay range disclosure law starts January 1, 2023, joining New York City, Connecticut, Maryland, Nevada, Rhode Island, and Washington. The most recent regulations go beyond employers responding to requests for salary ranges. These latest laws require pro-active pay range disclosures. This means organizations with more than 15 employees need to prepare pay scale details and post this information with any job posting. Employers will also need to provide current employees with pay scale information for their current position allowing for greater transparency and awareness of where an individual employee falls on the overall pay scale for their position.
The pay range disclosure laws are spreading in conjunction with pay data reporting laws. Employers above a specific size must disclose and certify that they are in compliance with applicable equal pay and anti-discrimination laws as well as prove discovered discrepancies are corrected. There is growing scrutiny into how compensation is determined, employee demographics (race, ethnicity, gender), and total wages paid as a means of assessing if pay equity is in place across the employer’s workforce. The Illinois Equal Pay Act, amended in 2021, is a prime example of the direction pay range disclosure laws are taking.
The trend of greater pay transparency is growing so there is no better time to review and assess internal roles, job descriptions, compensation, and overall structures. An internal audit or review of existing jobs, wages, and demographics can help get ahead of regional laws and accomplish equitable compensation for employees. It’s important to be prepared to address wage range related issues quickly.
iQuantum Diversity can help with these initial assessments or ongoing validations with our workforce analysis dashboard. Zero in on the demographics, roles, locations, or other facet of the workforce to better identify discrepancies and areas for improvement in equity and diversity. Request an iQuantum Diversity demonstration to learn more about how we can help prepare and maintain transparency of your employee compensation.