So far, both Colorado and New York City have focused on simply ensuring every job posting actually has a range, rather than deciding whether they’re appropriate. Enforcement might be more stringent when new laws kick off 2023 in California and Washington, said Christopher Patrick, a principal in employment law firm Jackson Lewis’s Denver office. In Washington, for instance, employers are required to disclose the full range for the job, even if the actual intended pay range for the open job might be lower — so lowballing the true maximum pay might violate the law there, Patrick said.
It’s unclear for now how California and Washington will approach enforcement, and most of the agencies have said they won’t fine a company for a first violation. When infringements occur, they are prosecuted as labor law violations, which carry stiff penalties. The fact that the rules vary so much is making compliance difficult and costly, said Emily Dickens, head of government affairs at the Society for Human Resource Management. “I don’t think employers are trying to be cute with this,” she said. “This is difficult.”
In the meantime, companies should explain their compensation strategy to both existing workers and potential hires, rather than trying to manage expectations with disingenuous pay ranges, said Reverb’s Kiner.
“I believe in transparency and honesty,” she said. “This doesn't seem to fit either one.”
This article was provided by Bloomberg News.