Nevada Pay Transparency Law: What HR Teams Needs to Know

Those of you who recruit or manage employees in Nevada should already be familiar with the Nevada Pay Transparency Law, SB 293. This law went into effect on October 1, 2021. This law impacts HR processes, and your team needs to be prepared. Let’s do a Nevada Pay Transparency Law refresher, break it down in practical terms, and highlight its key components. 

Here's What You'll Learn

Who Does the Nevada Pay Transparency Law Apply To? 

This part of the law is clear and straightforward, as the law applies to all employers in Nevada, regardless of company size, public or private. Even if your company is headquartered somewhere else but has employees based somewhere in Nevada, then you’ll need to follow these rules.  

In other words, recruiters, HR partners, and managers that support or manage Nevada based job opportunities and employees need to understand the details of the law.  

What Does the Law Require? 

There are two main requirements of this law. Let’s look at each one:

No Salary History Questions

Nevada makes it crystal clear that you can’t ask applicants for their previous salary, either directly or indirectly. You also can’t factor that history into job offers or hiring decisions. With that said, note that you can ask about an applicant’s salary expectation for the role. That is allowed. 

As an example, suppose you had a candidate who applied for a marketing analyst position and didn’t share his most recent salary. You can’t refuse to interview him or offer less compensation because he didn’t disclose his previous salary.  

HR Pro Tip: Review your job applications and interview questions. Make sure no questions about prior salary are included, and train interviewers to avoid questions or phrases around an applicant’s salary history.  

Provide Salary Range After the Interview 

When recruiting in Nevada, you are required to share the wage or salary range for a role after an applicant finishes an interview. The same applies for employees, at their request, who transfer to another role or receive an internal promotion. 

Here’s some related scenarios.  Let’s say that your employee Steve interviews for a Senior Accountant role. After the interview, you tell him, “The salary range for this role is $90,000–$110,000 plus bonus.”  That meets Nevada’s requirements. Delaying salary disclosure or responding with vague terms like “salary depends on experience” could put you at risk. 

Additionally, let’s say you have an internal candidate who applies for a job that is a promotion. After completing the interview, the employee requests the salary range. Be sure to provide it promptly, as that avoids ambiguity, builds trust, and helps keep your team compliant. 

Exceptions to Keep in Mind 

There seem to be exceptions to every rule, right? This law is no different. For example, you can ask about the applicant’s expected salary for the role. Also, posting salary ranges in job ads is not required. Remember that the disclosure obligation begins after the interview.  

Finally, certain exceptions may exist for collective bargaining agreements or “highly negotiated” roles. Check with your legal counsel or HR compliance experts, such as OutSolve, for guidance. 

Consequences of Noncompliance 

As with any law, compliance is not optional. Missing these requirements isn’t just a minor oversight, and violations carry real financial risk, such as: 

• Administrative penalties that can reach up to $5,000 per violation. 
• The Nevada Labor Commissioner may recover investigation costs and attorney fees. 
• Each applicant impacted is considered a separate violation.  For example, if your team inadvertently relies on salary history for five different candidates, then that’s potentially five separate violations, not just one. 

HR Best Practices for Pay Transparency 

How can you continue to incorporate pay transparency into your HR processes? There are several opportunities to do so. Let’s break those down into six action items: 

1. Audit Your Processes: You can do this by reviewing applications, interview questions, and background check criteria to remove any salary history questions. Train recruiters and hiring managers on what’s off-limits and what they can and cannot ask. 
2. Standardize Salary Ranges: Create clear, job-specific salary ranges for Nevada positions. Make sure ranges are aligned with market data. A very wide scope or misleading range could raise questions and invite scrutiny. Keep documentation on how ranges are determined, such as from market surveys, internal equity, or budget planning considerations. These are all valid resources and can support your company’s position if challenges arise.  
3. Train Your Team: Training is key. Include pay transparency guidance in recruiter and hiring manager training. Provide refresher training on a regular basis, and update the training as needed. Provide “cheat sheets” or simple checklists that are easy to understand and references actions such as: Allowed - salary expectations and Not allowed - previous salary questions. Maintain records on who was trained, when the training took place, and the general content of the training.  
4. Internal Promotions and Transfers: When employees interview for a new role, provide salary ranges upon request. Make your internal pay transparency policies clear, so employees understand that disclosure happens after interview or upon offer. HR can also support their organizations by attending staff meetings, discussing these policies, and answering any questions raised by managers or employees.  
5. Track and Monitor: Keep records of when salary ranges are shared. Periodically review offers to make sure they fall within established ranges. 
6. Communicate Transparently: Use this law as another opportunity to build trust amongst your workforce. Being upfront about salary ranges strengthens the overall candidate experience and supports equity initiatives. This is good for employer branding. It can also help with recruitment and retention initiatives. Add a note in job postings like, “Salary range will be provided after interview” to proactively highlight transparency and fairness. 

What the Nevada Pay Transparency Law Means for Your Organization

Feeling overwhelmed by all the details and requirements of this law? If so, you’re not alone. OutSolve offers many compensation solutions and can partner with you and help your HR teams audit job postings and interview processes, and develop salary ranges for your Nevada jobs and other jurisdictions.  

Working with OutSolve helps ensure your HR team operates confidently, fairly, and efficiently, creating a positive experience for both candidates and employees. Contact us today to get started! 

Additional Resources

• Don’t Get Caught Off Guard: HR’s Guide to Pay Transparency Laws
• Beyond the Basics: Implementing Pay Transparency Best Practices
• Ultimate Guide to Pay Transparency Laws by State