Pay Transparency and Benefits
We recently updated our pay transparency guidance to reflect evolving benefits requirements
In the United States, there's a range of pay transparency legislation. At one end, we have relatively straightforward requirements for including salary in job posts (e.g. California, New York). At the other end, there are more comprehensive requirements that include salary along with material benefits and non-wage compensation (e.g. Washington State).
Recently, there has been clarification on existing legislation. Specifically, in certain regions such as Colorado and Washington DC, the requirement to include benefits has been confirmed by the governing bodies.
What is the updated guidance for benefits?
To make sure we comply with pay transparency laws, if you post a job without benefits in a location where benefits are considered a crucial part of pay transparency, a sidebar alert stating “Include benefits to comply with pay transparency” will appear in the sidebar of the Datapeople Smart Editor. This alert will specify the locale where providing benefits information is essential.
What benefits are necessary to comply?
Within all regions of the US, benefits packages consist of three essential components: health care, retirement, and paid time off. These details are outlined on a state-by-state basis in the table below.
In order to be eligible for benefits inclusion, Datapeople mandate references to health care, retirement, and paid time off benefits to meet the requirements.
Descriptions of benefits do not need to be lengthy in order to be compliant. Washington State, known for its comprehensive requirements for pay transparency, has inspired the following blurb to fulfill their benefits requirements:
What we offer you:
- Medical, dental, vision, and basic life insurance coverage.
- 12 days of PTO a calendar year in addition to 12 paid holidays.
- Enrollment in our company’s 401k plan (with match).
- Potential to purchase company stock, receive annual bonuses, and participate in a deferred compensation plan.
The Fine Print
| Locale | Benefits |
|---|---|
Colorado |
A general description of all employment benefits the employer is offering for the position, including health care benefits, retirement benefits, any benefits permitting paid days off (including sick leave, parental leave, and paid time off or vacation benefits), and any other benefits that must be reported for federal tax purposes, but not benefits in the form of minor perks; A general description of any bonuses, commissions, or other forms of compensation that are being offered for the job; |
Illinois |
The Department intends to provide more guidance and examples in the coming months. For now, employers are encouraged to consider all possible benefits. While an employer must describe at least the nature of the benefits and what they provide, they do not need to provide specific details, terms and conditions, or dollar values. |
Minnesota |
A general description of all of the benefits and other compensation, including but not limited to any health or retirement benefits |
New Jersey |
A general description of benefits and other compensation programs for which the employee would be eligible. Each failure to include the information required in this subsection in a particular job posting shall constitute a separate violation of this subsection. |
Washington DC |
Disclose to prospective employees the existence of healthcare benefits that employees may receive. |
Washington |
A “general description of all benefits” includes, but is not limited to, health care benefits, retirement benefits, any benefits permitting paid days off (including more generous paid sick leave accruals, parental leave, and paid time off or vacation benefits), and any other benefits that must be reported for federal tax purposes, such as fringe benefits. Insurance: If an employer includes various types of insurance as part of the benefits package, the employer should list out the types of insurance in the job posting, such as medical insurance, vision insurance, dental insurance, life insurance, and disability insurance. Retirement Plans: If an employer includes various types of retirement options as part of the benefits package, the employer should list the retirement option in the job posting, such as 401k, employer-funded retirement plans, deferred compensation, and other defined benefit or defined contribution plans. Paid Time Off or Vacation: If the employer includes paid time off or paid vacation time as part of the benefits package, the employer should list the amount of days or hours the hired applicant would expect to receive, such as 8 hours per month or 12 days per year. Paid Holidays: If the employer includes paid holidays as part of the benefits package, the employer should list the number of paid holidays the hired applicant would expect to receive in the job posting, such as 10 paid holidays per year. The employer does not have to list each paid holiday. Other Compensation includes, but is not limited to, bonuses, commissions, profit-sharing, stock options, or other forms of compensation that would be offered to the hired applicant in addition to their established salary range or wage scale. |