Starting June 1, 2025, employers with 10 or more employees will be subject to new pay and promotion transparency requirements. The law is written to apply broadly to employers doing business in the state or accepting applications for employment within the state.
Pay and Benefits in Job Postings
Employers will need to include the hourly wage or salary (or a range) and a general description of benefits and other compensation in job postings. This applies to internal postings as well, such as those for transfer opportunities. The posted range should be a reasonable estimate of what the employer expects to pay for that particular position when filled.
Notification of Promotion Opportunities
Before making promotion decisions, employers need to make reasonable efforts to notify employees in the affected departments about promotion opportunities that have been advertised, either internally or externally. A promotion is defined as a change in job title and an increase in compensation.
Promotions that are awarded based on years of experience or performance (which generally wouldn’t be advertised), as well as those that are required immediately due to unforeseen circumstances (such as the sudden departure of a team manager), are exempt from these notification requirements.
Action Items
By June 1, 2025:
Amend your job postings to include the required information.
Notify employees about promotion opportunities.