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Webinar - Pay Transparency Legislation Series, Ep. 6: How to Infuse Transparency into Your Salary Ranges

Director of Demand Generation at PayScale, Inc.
Mar. 23, 2023
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Webinar - Pay Transparency Legislation Series, Ep. 6: How to Infuse Transparency into Your Salary Ranges

  1. Pay Transparency Legislation Series, Ep. 6: How to Infuse Transparency into Your Salary Ranges
  2. Today's Presenters: Ruth Thomas Chief Product Evangelist Payscale Lulu Seikaly Senior Corporate Attorney- Employment Payscale
  3. Today's Agenda • A pay transparency legislation overview • Best practices for creating and updating your salary ranges for transparency • What are your challenges and priorities? • Audience Q&A
  4. A Pay Transparency Legislation Overview
  5. Where and when is pay transparency legislation happening? Jan. 1, 2021 Colorado State (Job Ads) April 13, 2022 Jersey City, NJ (Job Ads) Sept. 1, 2022 Ithaca, NY (Job Ads) Nov. 1, 2022 NYC, NY (Job Ads) Nov. 6, 2022 Westchester County, NY (Job Ads) Jan. 1, 2023 Washington State (Job Ads) Jan. 1, 2023 Rhode Island (Interview) Jan. 1, 2023 California (Job Ads) September 17, 2023 New York State (Job Ads)
  6. Washington Legislation Overview Effective: January 1, 2023 • Who: employers with 15 or more employees, with at least 1 working in Washington • What: shall include pay scale (hourly or salary) for a position in any job posting and general description of benefits • Proposed Penalties: civil action for violations - greater of actual damages or $5,000 plus interest, costs, and reasonable attorney’s fees.
  7. California Legislation Overview Effective: January 1, 2023 • Who: employers with 15 or more employees, with at least 1 working in California • What: shall include pay scale (hourly or salary) for a position in any job posting that can be performed in California • Commission? Must be included for roles that are paid wholly or in part on commission • Proposed Penalties: between $100 and $10,000 per violation • Record Keeping Obligations: maintain records of job title and wage rate history for each employee for 3 years post employee's employment • Other considerations: additional pay reporting requirements and DOL guidance
  8. Effective: September 17, 2023 • Applies to employers with 4 or more employees, with at least 1 working in NY state • Internal and external job postings for applicants and employees that “can or will be performed, at least in part, in the State of NY.” • Penalties up to $3,000 for failure to comply • What must the posting include: • Actual compensation or range of compensation • Good faith standard • Job description (if a description exists); and • General description of other comp offered New York State Legislation Overview
  9. Proposed Amendments • Remote roles? • Role must report to a NY supervisor, office or worksite, OR • Will physically be performed, at least in part, in NY State • What about the NYC law? • NY State law does not supersede the NYC Ordinance • What about the NYC law? • Must comply with both sets of laws New York State Proposed Amendments
  10. We’ve already seen Pay Transparency bills being proposed in 2023: Montana Connecticut West Virginia Hawaii Massachusetts South Dakota Vermont Illinois Kentucky Maine Pennsylvania
  11. How to infuse transparency into your salary ranges
  12. Considerations for successful practice How do I get employees to apply for the job? Understand your competitive landscape and determine a strong data strategy – if you are going to post a pay range on a job posting you want to makes sure it is competitive for the market. Source: SHRM Survey Feb 23
  13. Considerations for successful practice Consider the impact on employees in similar jobs or undertaking substantially similar work? You should be aware of incumbents in other roles at the same level who may feel that they are comparable. Do this by developing a standardized structure and job leveling/architecture process. Consider the impact on current employees in same job? Evaluate current employee pay in line with market pricing – understand how current employees doing the same job compare to this, adjust as necessary. Source: SHRM Survey Feb 23
  14. Considerations for successful practice Consider the impact on managers? Training managers and other stakeholders to have effective conversations with employees about their pay is an important step. It also equips them with the knowledge to have more constructive career development conversations with their employees, which is a critical step in retaining talent. Source: Payscale CBPR 23
  15. Considerations for successful practice Consider the impact on your overall compensation strategy. Up-level your pay transparency strategy and link to your overall compensation management processes, including pay equity analysis, job description management, compensation planning and pay communications. Get buy in and commit to build transparent and consistent pay practices with a compensation philosophy that embeds fair pay. Being transparent about pay will help build trust and strengthen your relationship with employees which will ultimately impact your business success.
  16. What are your challenges and priorities?
  17. Poll 1: What are your greatest roadblocks to posting job ranges? A. We lack confidence in the accuracy of our market data B. We don't have organized pay structures C. We are concerned that we have pay inequity issues D. We need to educate managers and employees on how ranges are set E. We don’t feel confident we know the legal requirements F. We struggle to gain executive leadership buy-in G. We don't have any roadblocks, we are currently posting or are on the path to posting ranges with all JDs
  18. Poll 2: Which of these steps is your hardest problem to solve? A. Understand your competitive landscape and determine a data strategy B. Evaluate current employee pay against the market C. Implement standardized and scalable practices regarding salary structures and pay ranges D. Conduct regular pay equity analysis E. Efficiently manage your job descriptions F. Implement a strategic compensation planning framework that support pay transparency G. Support pay communication internally to employees and managers
  19. Poll 3: What would you prioritize as your top investment to meet the challenges of the Pay Transparency legislation? A. Understand your competitive landscape and determine a data strategy B. Evaluate current employee pay against the market C. Implement standardized and scalable practices regarding salary structures and pay ranges D. Conduct regular pay equity analysis E. Efficiently manage your job descriptions F. Implement a strategic compensation planning framework that support pay transparency G. Support pay communication internally to employees and managers
  20. Poll 4: If you are already posting salary ranges, what are the next steps you will take to improve compensation practices at your organization? A. Improve current salary ranges and pay grades to account for substantially similar work. B. Undertake pay equity analysis C.Improve transparency through compensation planning cycles D.Improve internal pay communications E. None of the above
  21. Q&A Feel free to ask any questions in the chat!
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