Employer Obligations Regarding Transparency in Pay Adjustments primarily involve disclosing pay scales and salary ranges to both job applicants and current employees, with specific requirements varying by jurisdiction but increasingly common in many U.S. states and the EU.

Key obligations include:

• Disclosing Salary Ranges in Job Postings:
  Many states, including California, Colorado, New York, Washington, Hawaii, Maryland, Nevada, and Vermont, require employers to include a good-faith salary or hourly wage range in all public job advertisements. This applies to positions that could be filled by residents of those states, including remote roles. For commission-based or tipped positions, specific disclosure rules apply, such as indicating the role is commission-based or stating the base wage for tipped roles.

• Providing Pay Scale Information to Current Employees:
  In California, for example, employers must provide current employees with the pay scale for their position upon request. The "pay scale" is defined as the salary or hourly wage range the employer reasonably expects to pay. Employers are not required to disclose pay scales for other positions but must be prepared for employees to discuss compensation and raise pay equity concerns.

• Prohibiting Salary History Inquiries and Pay Secrecy:
  Laws increasingly ban employers from asking about salary history during hiring to prevent perpetuating wage disparities. The EU Pay Transparency Directive, effective June 2026, explicitly bans pay secrecy and salary history inquiries.

• Recordkeeping and Reporting:
  Employers, especially in California, must keep detailed records of wages, job titles, and pay decisions for at least three years. Some jurisdictions require mandatory gender pay gap reporting and pay equity audits for employers of certain sizes, such as the EU directive requiring joint pay assessments and public reporting of unresolved pay gaps by January 2026.

• Enforcement and Penalties:
  Failure to comply with pay transparency laws can result in civil penalties or fines. Some states offer a cure period allowing employers to correct violations before fines are imposed. Enforcement is often carried out by state labor departments or attorneys general. Employees are typically protected from retaliation for discussing wages or requesting pay information.

• Employer Best Practices:
  Employers should regularly review pay scales and compensation data to ensure equity and be prepared to respond to employee inquiries about pay. Training managers and HR personnel on handling pay transparency and equity issues is recommended.

In summary, employer obligations regarding pay transparency and adjustments now commonly include disclosing salary ranges in job postings, providing pay scale information to employees upon request, prohibiting salary history inquiries, maintaining pay records, and conducting pay equity reporting or audits where required. These measures aim to promote fairness, reduce wage disparities, and empower employees with information about their compensation.