Should Companies Include Wages or Compensation in Job Ads?

Is it essential to provide pay and perks in job postings? Read about the regulations governing both in-person and remote job ads.

What you’ll discover:

Is it necessary to provide income or compensation information in a job posting?
Can I restrict candidates to a certain area or state?
How can I determine the anticipated pay or compensation for a position or job?
Are there any additional legal requirements for job postings?

Some companies may be unaware that some states demand pay and benefit transparency, either in the job description or at the request of the job candidate. Businesses that have previously employed in-person personnel may be unaware of the criteria for recruiting remote employees. Working from home was formerly considered unusual. Remote employment are becoming increasingly widespread, with more and more workers embracing the flexibility and convenience of working from home. Is it, nevertheless, important to include pay in remote job postings? What about in-person positions? We will go further into these concerns so that you are aware of the regulations governing both in-person and remote job advertisements.

Is it necessary to provide income or compensation information in a job posting?

Employers are required to provide wage information depending on their location as well as the location of their potential employee. California recently enacted legislation mandating firms with 15 or more workers to publish wage ranges in job postings. Job advertising in Colorado must disclose the intended wage range, according to a regulation that goes into effect in 2021. This regulation, however, does not simply apply to Colorado businesses; it also applies to any corporation employing a Colorado citizen, even for remote employment. These laws force companies to reveal hourly rates or salary, bonuses or commissions, and a description of perks in order to assist reduce the gender pay gap. Businesses who fail to comply with the Fair Pay Transparency Guidelines face penalties ranging from $500 to $10,000 per infraction.

Rather from releasing wage information, some businesses choose to exclude Colorado residents from the candidate pool. A simple search on a popular employment site will provide hundreds of distant job listings that include wording stating that the individual will be unable to do the work from Colorado. While some businesses are bypassing these regulations by excluding Colorado citizens, this strategy will not last long. Many additional states, including Rhode Island, Maryland, Washington, Connecticut, New York, and Massachusetts, are considering similar wage disclosure legislation.

Businesses should speak with an attorney to learn more about the regulations and verify they are in compliance with Colorado’s EPEWA and other states’ job posting standards.

Can I restrict candidates to a certain area or state?

Companies often exclude remote applications depending on their location. Because of a variety of factors such as tax regulations, customers, meetings, labor laws, travel, certifications, and time zones, remote job advertisements sometimes specify a desire for being in a geographic location. Several local and state government positions, for example, require candidates to reside in the state or migrate there within a particular time limit.

Some classes of people are protected by federal legislation against discrimination based on their gender, race, color, national origin, sexual orientation, religion, mental and physical disability, citizenship status, ancestry, and age. The location of a person’s residence is not a protected class under the United States Constitution. Except for Montana, employment agreements are “at-will,” which means that an employee may be fired if they do not comply with company rules, such as where to reside.

Although some corporations have been chastised for rejecting citizens of a certain state from remote positions, it is not prohibited for an employer to demand employees to live within a specific geographic region or to remove employees for geographic reasons.

How can I determine the anticipated pay or compensation for a position or job?

Employers often determine how much they want to pay their workers and then establish wage ranges for roles. The position’s remuneration would include a minimum pay rate, a middle-range possibility for salary increases, and a maximum rate. When determining compensation rates for a certain job, businesses should consider the following factors:

Third-party organizations can assist in determining the proper compensation range for persons performing comparable work in similar areas and sectors.
Market research and pay estimates.
Their financial situation.
A fair wage for the position.
Particular job requirements include years of experience, education, and specific talents.
What the employee may earn for the firm (if the company is for-profit).

Are there any additional legal requirements for job postings?

Federal law prohibits discrimination or favoritism based on race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age, disability, or genetic information in job postings. The Equal Employment Opportunity Commission (EEOC) of the United States is the organization responsible for ensuring that employers do not discriminate against certain protected classifications. Nevertheless, there are certain exceptions under the EEOC’s Bona fide occupational qualification rules, which outline very rare scenarios in which a job posting may discriminate based on physical, age, or religious restrictions.

The standards for job postings may also differ somewhat from state to state. Several states, such as Nevada and California, mandate pay disclosure once a candidate interviews and requests the information, in addition to the states already listed having salary disclosure legislation in place or in the works.