Nevada Salary Transparency Law (SB 293): Complete Employer Guide

Overview of the Nevada Salary Transparency Law

Senate Bill 293 (SB 293) took effect in Nevada on October 1, 2021. It represents the state's effort to address pay inequities and ensure transparency in compensation negotiations. While it differs from laws in states like California or New York by not demanding wage ranges in upfront job postings, it imposes significant requirements on employers during the hiring process and regarding internal promotions or transfers.

The Nevada salary transparency law establishes that an employer must provide the wage or salary range or rate to an applicant who has completed an interview for a position if the applicant requests it. Additionally, employers are required to provide a wage or salary range for a promotion or transfer to a new position if an employee applies for it, completes an interview or has been offered the role, and requests the information.

Equally important, SB 293 strictly prohibits employers from asking about an applicant's salary history. Employers cannot rely on a candidate's previous wage history to determine their initial pay rate or whether to extend an employment offer.

Who Must Comply?

Unlike transparency laws in some other jurisdictions that only apply to employers over a certain headcount (e.g., 15 employees), Nevada's law is extremely broad. If you employ even a single person in the state of Nevada, you are subject to these requirements.

Requirements: What Do Employers Have to Do?

Under the Nevada salary transparency law, the requirements are triggered during the interview and offer phases, rather than at the job posting phase. Here is a breakdown of what employers must do:

• For Applicants: You must provide the wage or salary range or rate for a position after an applicant has completed an interview, provided the applicant requests this information.
• For Current Employees: If a current employee applies for a promotion or transfer, you must provide the salary range or rate for that position if they have completed an interview or been offered the role, and they request the information.
• Salary History Ban: You cannot ask, orally or in writing, about an applicant's wage or salary history. This includes prohibiting searches of public records or using third parties to uncover this information. You also cannot refuse to hire or discriminate against an applicant for not providing their wage history.

It is important to note that if an applicant voluntarily and unprompted discloses their salary history, you are not penalized, but you still cannot use that information to set their future compensation unless it is to offer a higher wage than initially planned.

Penalties for Non-Compliance

The Nevada Labor Commissioner is responsible for enforcing SB 293. The law provides for significant administrative penalties for violations.

Each instance of a violation—such as unlawfully asking for salary history or failing to provide a range upon an eligible applicant's request—can result in an administrative penalty of up to $5,000. Additionally, aggrieved individuals can file complaints with the Nevada Labor Commissioner, which can trigger further investigations and enforcement actions.

What About Remote Work?

Because the Nevada salary transparency law covers employers doing business in Nevada, it can apply to remote roles. If an employer has employees in Nevada or is hiring a remote worker who resides in Nevada, they should comply with SB 293's requirements regarding salary disclosure upon request and the strict ban on salary history inquiries. Given the rise of remote work, it is a best practice for nationwide employers to simply remove salary history questions from all applications and interviews, and prepare salary ranges for all roles to be provided upon an applicant's post-interview request.

How to Comply

To ensure full compliance with the Nevada salary transparency law, employers should take the following steps:

• Update Application Forms: Remove any questions asking for current or past compensation from all job applications and background check forms.
• Train Interviewers: Ensure all hiring managers, recruiters, and HR personnel are trained never to ask about an applicant's salary history.
• Prepare Pay Scales: Establish formalized salary ranges or rates for all positions. You must have these ready to provide if an applicant requests them after an interview.
• Establish a Process: Create a standard operating procedure for how and when salary ranges are provided to applicants and current employees who request them after interviews.

Key Takeaways

• The Nevada salary transparency law (SB 293) has been effective since October 1, 2021.
• It applies to all employers with 1 or more employees in Nevada.
• Employers must provide salary ranges after an interview if requested by the applicant.
• Inquiring about salary history is strictly prohibited.
• Administrative penalties can reach up to $5,000 per violation.