SPOTLIGHT: PAY TRANSPARENCY IN NEVADA
Senate Bill 293 (SB293), which went into effect on October 1, 2021, imposes new restrictions and obligations on Nevada employers. Specifically, it limits an employer’s ability to ask for or rely on an applicant’s wage or salary history in determining their rate of pay. It also requires employers to disclose the wage rate or salary range to applicants and employees seeking transfer or promotion in certain circumstances.
These new restrictions and obligations apply to employers regardless of size or industry. The Labor Commissioner is charged with enforcing this new law and can impose an administrative penalty of up to $5,000 on employers who violate any of the provisions of this law.
Employers Cannot Seek or Rely on Salary History
Under SB293, employers and staffing agencies are prohibited from seeking — either directly or indirectly — wage history of an applicant for employment. This limitation does not prevent an employer from asking an applicant what their wage or salary expectations are regarding the position they are applying for. SB293 specifically permits it.
Even if an employer or staffing agency comes by an applicant’s salary history inadvertently, SB293 prohibits them from using that information So, even if an applicant voluntarily discloses their wage history, an employer or staffing agency would be prohibited from using that information in setting the rate of pay they offer the applicant for that position. They are also prohibited from using that information as a basis for whether to offer employment to that applicant or not.
Further, employers and staffing agencies are prohibited from discriminating, retaliating, or refusing to hire or promote an applicant who does not disclose their wage or salary history.
Wage of salary history means the wages or salary paid to an applicant by their current or former employer and includes, without limitation, any compensation and benefits received by the applicant by their current or former employer.
Employers Must Disclose Pay Range or Wage Rate
Employers and staffing agencies are also now obligated to provide applicants and current employees seeking a promotion or transfer to a new position the wage rate or salary range for that position under certain circumstances. For applicants, the wage rate or salary range must be provided automatically following an interview for the position. For current employees seeking promotion or transfer, the wage rate or salary range must be provided if the employee has (1) applied for the promotion or transfer, (2) completed an interview or been offered the promotion or transfer, and (3) requested the wage rate or salary range for the position.
Have questions about these new requirements? Join us for Understanding SB293: Nevada’s Pay Transparency Law on Friday, December 3, 2021. This webinar will provide an in-depth discussion of Senate Bill 293, including best practices for employers to ensure compliance. This webinar is a great opportunity to get clarification on the details of this new requirement. Don’t miss out on this excellent learning opportunity. HRCI and SHRM credit will be available.
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