Maine Sets New Pay Transparency Requirements: What You Need to Know Ahead of July Effective Date

Maine Sets New Pay Transparency Requirements: What You Need to Know Ahead of July Effective Date

Maine businesses will soon have to disclose pay ranges and maintain employee compensation records under the state’s recently enacted pay transparency law. Maine joins a growing number of jurisdictions requiring companies to be more transparent about their pay practices. Here’s everything businesses with Maine employees should know about the new law before it goes into effect on July 29.

Who is Covered?

Maine’s new pay transparency law, LD 54, impacts employers differently depending on the number of employees you have. However, it doesn’t specify if the employer size includes only Maine employees or all employees of a company, an issue that will likely add to the compliance confusion.

Employers with 10 or more employees need to:

• include a pay range in all job postings unless the position is solely commission-based, then the posting must disclose that; and
• ensure this information is included in electronic or print job postings, whether made directly by the employer or through a third party.

All employers need to:

• disclose the pay range for the position an employee holds, if a current employee requests that information; and
• maintain records of each employee’s job title and pay history during their employment and for three years after they leave employment.

What Must Be Disclosed

“Pay range” is defined as the range of pay that an employer anticipates relying on in setting wages for a position, which may include:

• applicable pay scales;
• a previously determined range of wages for the position;
• the actual wage range for those currently holding equivalent positions; or
• the budgeted amount for the position.

The new law also provides funding for a new Maine Department of Labor inspector position to enforce the requirement that employers disclose pay ranges and maintain records of employees’ pay histories.

Key Takeaways for Employers

• Audit all job postings to ensure proper pay range disclosures are included. Build ranges into your posting template moving forward.
• Ensure all job titles have pay ranges determined in the event an employee requests this information.
• Review your recordkeeping process to ensure you are capturing all job titles and pay rates for employees and retaining that information for three years after employment termination.
• Consult with counsel to ensure your practices are following the new state law or to develop a compliance plan before July 29.

Conclusion

We will monitor developments related to this law, so make sure you are subscribed to Fisher Phillips’ Insights to get the most up-to-date information. If you have questions, contact your Fisher Phillips attorney or the authors of this Insight.