Are You Required to Share Salary Ranges?
For years, job seekers have been unsatisfied with job descriptions. Some job descriptions can be vague and provide little information about the company. The biggest complaint of these ag job seekers is that job descriptions do not list salary ranges for the job they are considering to apply. According to CareerBuilder, 74% of candidates would prefer to find the salary range on job descriptions. While there are many reasons why companies may not include the salary range, candidates are still frustrated with the uncertainty.
Many quality ag candidates can be hesitant to apply to a job if they are unsure of the salary range; especially if they’ve previously gone through a long interview process only to find out the company cannot come up to their salary needs. So, job seekers may wonder before applying if it will be worth the time commitment to complete your application process.
In today’s candidate-driven job market, we’ve seen a shift in bargaining power. Candidates are asking the hard questions early to find out if the interview process is going to be worth their time and effort. That means candidates are asking about the salary range much sooner in the process.
New Laws Are Forcing Employers to Share Salary Details
There are 21 states with statewide laws that prohibit recruiters and hiring managers from asking job seekers their salary history or have bans that protect employees who discuss pay with coworkers. In those states, employers can discuss a candidate’s salary expectations, however, they cannot inquire about their current salary.
This is important to keep in mind when you are hiring remote workers as well. Some of these state laws apply to employees that live in the state, even if your agribusiness is not in the state. For example, if you’re hiring an Agronomy Sale Rep in Colorado, but your agribusiness is based in Kansas, you still cannot discuss the candidate’s salary history. However, it’s good practice to ask candidates about their expected salary range and/or provide a salary range for the position. Just like your customers, job seekers appreciate transparency.
In addition to the laws prohibiting employers from discussing salary histories with job candidates, 10 states and cities are now putting pay transparency laws in place. These laws vary by location, such as when employers are required to disclose salary ranges and what employers are required to disclose their ranges.
Here are the states and cities employers are required to disclose salary ranges during the hiring process.
California became the first state in the U.S. to put this law in place. In January 2018, the state’s Equal Pay Act bans employers from asking applicants about their salary history. The Act requires employers to disclose the pay range for a position if the job seeker asks for it after the first interview. Beginning January 2023, a new California salary transparency law requires employers with "15 or more employees to include the pay scale for a position in any job posting." That includes any third-party source you use to announce, post, or publish a job.
Beginning in 2020, the city’s Prohibited Salary Inquire and Use Ordinance require employers in the city to provide the pay range of a job after an offer has been made and the applicant asks for it. This ordinance also bans employers from asking job candidates about their salary history.
The state’s Equal Pay for Equal Work Act, starting January 2021, requires employers to include the pay range and benefits in every job description. Companies with at least one employee in the state are required to include the pay range in the job description for any remote job that could potentially be performed in Colorado. The act also requires employers to notify current employees of all promotion opportunities and keep job descriptions and wage records.
Per Connecticut’s An Act Concerning the Disclosure of Salary Ranges, beginning in October 2021, employers in the state are required to provide salary ranges if an applicant asks for it, or if the employer extends an offer, whichever occurs first. Employers are also required to provide an employee with the pay range when they’re hired, change positions, or request it for their current role.
Maryland updated its Equal Pay for Equal Work law in October 2021, requiring employers to disclose the pay range upon request and banning employers from asking job candidates about their salary history.
Beginning in October 2021, Employers in Nevada must provide salary ranges to applicants after an initial interview automatically, whether the candidate asked for it or not. Additionally, they are banned from asking about salary history. If an employee moves internally, the company must provide pay ranges for transfers or promotions if they have applied for it, completed an interview, and requested it.
New York City
The most recent law to be announced is in New York City. As of April 2022, employers in New York City will be required to include the salary range on all job postings, promotions, or transfer opportunities.
Rhode Island’s Equal Pay Law will begin in January 2023, which requires employers to disclose the pay range for a job before they discuss compensation. They must also provide job seekers with pay range details upon request during interviews. When an employee moves into a new role, they must disclose salary ranges as well. If an employee asks for the salary range for their current role the employer must provide it.
Toledo’s Pay Equity Act, starting in 2020, requires employers to provide pay ranges on a job after an offer has been made and the applicant asks for it. It also states that employers in the city are banned from asking candidates about their salary history.
The Equal Pay and Opportunities Act in Washington was amended in 2019 to include the requirement that employers must provide the salary range for a position after they have made an offer and if a job candidate has asked for it. Employers must also provide the range for any employee that transfers or is promoted if the employee asks for it. If a scale or range doesn’t exist, the employer is required to provide the employee with a minimum salary expectation. The minimum salary expectation must be set prior to posting the role, making a position transfer, or making a promotion.
Are More Pay Transparency Laws Coming?
In the current job market, candidates are demanding more transparency. In our interactions with candidates, they are asking about pay ranges and benefits early in the conversation. Just like agriculture employers want to only talk to qualified and interested ag candidates, job seekers want to know their time and energy aren’t being wasted on an opportunity that doesn’t meet their needs and career goals.
There are more bills in the works in other states, including Massachusetts, South Carolina, and New York. With more and more states adopting pay transparency laws, it’s more important to stay up to date on the recruitment laws in your state and surrounding states.
AgHires expert agriculture recruiters stay informed of recruitment laws and use best practices when conducting interviews and interacting with candidates. You’re the expert in your field, and we’re the expert in our field, so if you need a recruiting partner that lives and breathes ag, we’re here to help you find your all-star candidate.