Everything Small Businesses Need to Know About New Pay Transparency Laws

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.

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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.