Wage Transparency Laws: How Do They Affect Texas Employers?

Once upon a time, employers commonly discouraged or even prohibited their employees from discussing their wages and benefits amongst themselves.  But today, the law is on the side of the employee.  The National Labor Relations Act, which applies to both union and non-union employees, makes it against the law for employers to forbid employees from discussing wages and other terms and conditions of employment with each other.

Now, new laws in some states require certain employers to make some wage and benefits information, that used to be kept under wraps, available.  What do these laws require and how does this affect Texas employers?  Read on to find out.

New Wage Transparency Laws for 2023

In the past, the employer could choose whether to disclose pay ranges to job applicants.  Many did not.  Employee rights advocates say this secrecy reduced negotiating leverage for potential employees and contributed to the race- and gender-based pay gaps that exist in some companies.

New wage transparency laws in several states with large workforces seek to make inroads on this problem by requiring employers to make salary ranges public.  Colorado, California, New York, Massachusetts, and Rhode Island have wage transparency laws either in place now or scheduled to take effect later this year.  Take a look at the details of these laws:

  • California employers with more than 15 employers must include salary ranges in job postings, even on third-party sites, and must also disclose pay ranges for an employee’s current position upon request.
  • Colorado’s Equal Pay for Equal Work Act states employers must disclose a pay range and benefits in their job postings.
  • Connecticut employers must disclose a salary range if the applicant asks, or if an offer is extended, whichever occurs first and also when the applicant is hired. Employers also must give an employee a pay range for their current position if they ask or if they change to a new role.
  • Maryland employers must provide a pay range to applicants if they request it.
  • Nevada employers must disclose a salary range automatically to applicants after their first interview and also must provide it to a current employee that changes position if the employee goes through the standard hiring process and requests the information.
  • New York State’s law, which takes effect in September 2023, requires employers with four or more employees to include pay ranges in job postings. New York City has had a similar law in place since November of 2022.
  • Rhode Island’s Pay Equity Act requires employers to provide a salary range if it is requested, however this information does not have to be included in a job ad. Employers must also provide a pay range before a worker is hired or to an employee that is changing jobs within the company.
  • In Washington State, the Equal Pay and Opportunities Act requires employers with more than 15 employees to add salary ranges to both internal and external job listings.
  • The cities of Cincinnati and Toledo, Ohio both have pay transparency laws in effect as well. These laws require employers to provide a salary range to an applicant after the job is offered, if the applicant requests it.

Texas Employers and Pay Transparency

While Texas does not have such a law, some Texas employers will still be affected by it. Texas companies who conduct certain types of business in pay transparency cities/states must abide by the applicable laws.  Additionally, companies that employ remote workers and accept applications from candidates in pay transparency cities/states may be subject to their laws as well.

Contact Our Frisco Employment Law Attorneys Today

As a Texas employer, are you affected by a pay transparency law in another state?  If you are not sure, it’s best to consult an employment lawyer to find out.  The Frisco employment law attorneys at Simon | Paschal PLLC can help you decipher the numerous, and varying, wage transparency laws and determine if you must adjust your hiring practices. Schedule a consultation with our office today by filling out the online form or calling (972) 893-9340.

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