You are about to leave Risk Strategies website and view the content of an external website.
You are leaving risk-strategies.com
By accessing this link, you will be leaving Risk Strategies website and entering a website hosted by another party. Please be advised that you will no longer be subject to, or under the protection of, the privacy and security policies of Risk Strategies website. We encourage you to read and evaluate the privacy and security policies of the site you are entering, which may be different than those of Risk Strategies.
California, New York, Washington, and Rhode Island have joined the growing list of states that require employers to communicate salary ranges for job openings.
This is a big change from the past when companies kept salaries private to:
Learn how these statutes might directly affect your business and insurance coverage to stay prepared.
Pay range statutes require employers to make public the salary ranges when hiring for open positions.
Pay transparency statutes may increase the risk of lawsuits. Scenarios could include:
The increased risk of lawsuits against organizations could significantly impact management liability insurance. Insurers may respond to this by raising premiums or making it more difficult for employers to obtain coverage.
A pay disclosure violation could also damage a business’s reputation. This could make it harder to attract and retain top talent and lower investor confidence.
Many employers are wondering: how will these statutes affect Employment Practices Liability Insurance (EPLI)? It remains to be seen, as these new laws don't directly address employment practices like hiring, firing, discrimination, or harassment. But, beware — if changes to these statutes cause employees to discover their employer pays them unfairly, they might be more likely to sue their employer for discrimination.
To maintain best practices and drive employee satisfaction, take steps to comply with pay disclosure statutes:
States making pay information more open could potentially benefit both workers and companies. Still, continue to be aware of possible challenges ahead and take steps to mitigate them.