Pay Transparency Checklist
It’s becoming increasingly clear that providing pay transparency is not a temporary trend; therefore, employers may be considering implementing policies into their operations. This checklist outlines the steps for establishing pay transparency practices.
Pay transparency is when an employer openly communicates pay-related information to current or
prospective employees through established practices. Because of changing labor markets and a desire to
be paid fairly, more employees are demanding pay transparency. As this demand increases, some states
have passed legislation requiring organizations to be transparent. In recent years, California, Colorado,
Connecticut, Maryland, Nevada, Rhode Island and Washington have all passed pay transparency laws.
Some cities, including New York City, Jersey City, New Jersey, and Cincinnati, Ohio, have also passed such
laws. Employers should be aware that pay transparency laws vary depending on the jurisdiction.
It’s becoming increasingly clear that providing pay transparency is not a temporary trend; therefore,
employers may be considering implementing policies into their operations. However, employers should
consider the applicable rules and regulations related to pay transparency in their jurisdiction.
Additionally, hiring remote workers can trigger pay transparency obligations and create potential risks
even in states where employers do not have a physical presence. Even if an employer is in a jurisdiction
that may not require pay transparency, it may be beneficial to provide pay-related information to attract
talent since employees and applicants are more frequently demanding it.
This checklist outlines the steps for establishing pay transparency practices. It’s intended to be used as a
guide, and not all of the following steps may be necessary to create and manage pay transparency
practices. Therefore, the steps in this list should be modified to meet any jurisdictional requirements as
well as the unique need of your organization. Employers are encouraged to seek legal counsel to address
specific issues and concerns.