Does a Wisconsin-based Employer Have to Comply With Another State’s Salary Transparency Laws?
Many Wisconsin employers have expanded their workforce beyond state borders, whether through remote work arrangements, multi-state operations, or recruitment efforts targeting a broader talent pool. As a result, a common question arises: If a Wisconsin-based employer has employees who live and work in another state, does the employer have to comply with that state’s salary transparency and job posting requirements? In many cases, the answer is yes.
Which State Law Applies?
A company’s headquarters location does not necessarily determine which pay transparency laws apply. Instead, states often look to where employees perform their work or whether a position may be filled by a resident of that state. Consequently, a Wisconsin employer may become subject to another state’s salary disclosure requirements even if it has no office, facility, or other physical presence there.
Over the past several years, numerous states have enacted pay transparency laws requiring employers to disclose compensation ranges during the hiring process. These laws are designed to promote pay equity and provide job applicants with greater information regarding compensation opportunities. While the specific requirements vary, many states require salary ranges to be included in job postings, disclosed to applicants upon request, or provided at certain stages of the recruitment process.
For Wisconsin employers, the critical issue is whether they meet the definition of a “covered employer” under the laws of the state where an employee works or where a position is offered. Some states apply their pay transparency requirements to any employer with employees working within the state. Others establish minimum employee thresholds, either within the state or nationwide.
For employers with remote employees, the location where the employee performs work is often more important than the location of the employer’s headquarters. Consider a Wisconsin company headquartered in Waukesha, Madison, Milwaukee, or Green Bay that employs a fully remote worker located in Colorado, Washington, or New York. Even though the company’s operations are centered in Wisconsin, the presence of an employee performing services in another state may trigger obligations under that state’s pay transparency laws. Similarly, if the Wisconsin employer posts a remote position that could be filled by applicants residing in a state with salary disclosure requirements, the posting itself may need to comply with that state’s regulations.
The Compliance Challenge
The compliance challenge comes from the lack of uniformity among state laws. Some jurisdictions require employers to include a good-faith salary range in every job advertisement. Others require disclosure of compensation information only during the interview process or upon request by the applicant. Certain laws also require disclosure of benefits, bonuses, commissions, stock awards, or other forms of compensation in addition to base salary. Accordingly, a Wisconsin employer that complies with one state’s requirements may still fall short of another state’s standards.
Ultimately, whether a company is considered a covered employer under another state’s salary transparency law depends on the specific language of the statute and the employer’s connection to that state. The existence of remote employees, the location where work is performed, and the geographic scope of job advertisements are all factors that may trigger compliance obligations. Employers should therefore evaluate the laws of each state where employees reside or work, rather than assuming that only the laws of the company’s home state apply.
Failure to comply can result in regulatory investigations, civil penalties, and reputational concerns. As pay transparency continues to receive attention from legislators and regulators, enforcement efforts are expected to increase. Wisconsin employers with remote employees or multi-state recruiting practices should therefore evaluate their obligations carefully before posting positions or implementing compensation policies.
Employers should review their recruiting practices, job posting templates, compensation structures, and recordkeeping procedures to determine whether they satisfy the requirements of the states in which they operate. In many cases, adopting a uniform nationwide approach to salary disclosures may be more efficient than attempting to tailor postings to each jurisdiction individually.
Bottom Line
Compliance obligations for Wisconsin employers do not stop at Wisconsin’s borders. A Wisconsin headquarters does not exempt an employer from the pay transparency laws of other states. If employees work remotely from another state, or if job opportunities are available to residents of states with salary disclosure requirements, the employer may be required to comply with those laws. Careful review of each applicable statute is essential to ensure compliance and avoid costly mistakes in an increasingly complex multi-state employment landscape.
This article, slightly modified to note recent updates, was featured online in the Great Lakes Employment Law Letter and published by BLR®—Business & Legal Resources. Reproduced here with the permission of BLR®—Business & Legal Resources.
