State Law Required Disclosure of Employee Benefits on Job Postings
In recent years, a number of states passed legislation requiring employers to disclose wage scales and salary ranges to potential job applicants on job postings. Two states, Colorado and Washington, go beyond pay scales and require certain employers to disclose employee benefits offered with a position in addition to that position’s pay scale.
Colorado
Beginning on January 1, 2021, Colorado state law requires that employers with at least one Colorado-based employee provide a position’s wage scale or salary range and a general description of all employee benefits for the advertised position if that position is capable of being performed within the state. Colorado maintains that this requirement applies to remote jobs even if the job posting states that Colorado applicants will not be considered.
A general description of all employment benefits includes, but is not limited to, describing 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.
Washington
Starting on January 1, 2023, Washington state law requires that employers with 15 or more employees who post a job that is capable of being performed by an employee in the state must include the position’s wage scale or salary range and a “general description of all benefits.” Washington maintains that this requirement applies to remote jobs even if the job posting states that Washington applicants will not be considered.
A general description of benefits includes, but is not limited to, health care benefits, retirement benefits, any benefits permitting paid days off, and any other benefits that must be reported for federal tax purposes, such as fringe benefits. The types of insurance offered should be listed out. The job posting should contain the employer’s most reasonable and genuinely expected benefits offerings for the job. See Example 5.2-1 for an example description of benefits.
Key Takeaways:
Employers should review state level requirements for disclosing employee benefits in job postings. Washington and Colorado both have newer disclosure requirements that employers who operate in those states would be well served to review to ensure their job postings are compliant.
The information provided is a summary of laws and regulations relating to employee benefit plan compliance. This information should not be construed as legal advice. In all cases, employers should consult with their own legal counsel.
