March 01, 2022

Don’t Ask, Must Tell: Trending Wage & Hour Rules

A few wage and hour trends have been sweeping the nation for the last couple of years. Many HR professionals are aware of salary history bans. There are two other trends that may be of equal import, impact, and of which employers should be aware.

Must: At least eight states and local jurisdictions have passed a law requiring covered employers to disclose to applicants the wage rate or range for the job for which the candidate is applying.

Must: At least one state and one local jurisdiction have passed a law requiring covered employers to disclose in a job ad or job posting the wage rate or range for the job for which they are recruiting in the job ad. This proposition gives me the most angst.  It lays the foundation for giving the appearance that employers may be engaged in antitrust violations, unlawful collusion, wage pricing, or fixing. A practice warned against by the Federal Trade Commission in its publication to HR Professionals in 2016.

May Not: On the flip side, while employers are being required to disclose what they pay, they are prohibited from asking what a candidate currently earns or historically has earned. HR Dive reports that at least 21 states and an additional 21 local jurisdictions have passed a law prohibiting covered employers from asking a candidate about the candidate’s salary history.

Tip #1: Ensure you are acting in accordance with the state and local laws of the jurisdictions in which you are recruiting for talent.

Tip #2: If mandatory wage disclosure rules concern you, advocate! Talk to your state and/or local elected officials. Give them practical examples of the risk such a law may pose to your company or how it might impede your ability to compete for talent.

Want more wage and hours new, updates, and tips? Join us for the March 23rd webcast, “Pay Them Now or Pay Them MORE Later: A Wage and Hour Update.”