Nevada implemented a comprehensive pay transparency law on October 1, 2021, aimed at promoting fair compensation practices and reducing wage disparities.

This law, known as Senate Bill 293 (SB293), applies to all employers in Nevada, regardless of their size or industry.

Key Provisions of Nevada's Pay Transparency Law

Salary Range Disclosure

Under SB293, employers in Nevada are required to disclose salary information to job applicants and current employees in specific circumstances:

1. For job applicants: Employers must provide the wage rate or salary range for a position automatically after conducting an interview.
2. For current employees: When seeking a promotion or transfer, employees can request the wage rate or salary range for the new position if they have:
   • Applied for the promotion or transfer
   • Completed an interview or been offered the position
   • Requested the wage or salary information

It's important to note that Nevada's law differs from some other states' pay transparency laws, as it does not require employers to include salary ranges in job postings.

Salary History Ban

SB293 also includes a strict salary history ban. Under this provision:

• Employers are prohibited from seeking an applicant's wage or salary history, either directly or indirectly
• Even if an employer inadvertently learns about an applicant's salary history, they are not allowed to use this information in making employment or compensation decisions
• Employers cannot discriminate against, retaliate against, or refuse to interview, hire, or promote an applicant who does not disclose their wage or salary history

Unlike some other states' laws, Nevada's salary history ban does not provide exceptions for voluntarily shared salary information.

Permitted Practices

While the law imposes several restrictions, employers in Nevada are still allowed to:

• Ask applicants about their wage or salary expectations for the position they are applying for.
• Discuss and negotiate compensation with applicants, as long as they don't base it on salary history.

Enforcement and Penalties

The Nevada Labor Commissioner is responsible for enforcing SB293. The law provides several mechanisms for addressing violations:

1. Individuals can file complaints with the Labor Commissioner if they believe an employer has violated the law.
2. The Labor Commissioner will investigate complaints and can impose administrative penalties of up to $5,000 per violation if a violation is confirmed.
3. The Commissioner may also recover investigative costs and attorneys' fees.
4. After 180 days from filing a complaint, individuals can request a right-to-sue notice from the Labor Commissioner.
5. Individuals have 90 days from receiving the right-to-sue notice to initiate a lawsuit against the employer.

Impact on Employers

Nevada's pay transparency law has several implications for employers:

1. Employers need to establish clear salary ranges for all positions to comply with the disclosure requirements.
2. Human resources and hiring managers must be trained on the new requirements to ensure compliance during the hiring and promotion processes.
3. Employers should review and update their job application forms and interview processes to remove any questions about salary history.
4. Companies may need to adjust their compensation strategies to ensure fair and competitive pay practices.

Broader Implications

Nevada's pay transparency law is part of a growing national trend aimed at addressing pay inequities and promoting fair compensation practices. By requiring salary range disclosures and banning salary history inquiries, the law aims to:

1. Reduce wage disparities based on gender, race, or other protected characteristics.
2. Empower job applicants and employees with more information about compensation.
3. Encourage employers to establish more structured and equitable pay practices.
4. Promote open discussions about compensation in the workplace.

As more states and localities implement similar laws, employers operating in multiple jurisdictions may need to adapt their practices to comply with various requirements.

Nevada's law serves as an important step in the broader movement towards pay equity and transparency in the United States.