On April 24, Governor Mills signed “An Act to Require Employers to Disclose Pay Ranges and Maintain Records of Employees’ Pay Histories.” This law, which will be effective July 2026, governs disclosure and record keeping by employers of employee pay information. It applies to employers with 10 or more employees.
The law requires the following:
- A covered employer must ensure that a “posting” lists the “prospective range of pay the employer will offer to a successful applicant.” There is an exception if the position is compensated solely on the basis of commission, in which case the required posted statement must say that.
- Also, at an employee’s request, an employer “shall disclose the range of pay the employer offers for the position the employee holds.”
- Finally, an employer shall maintain a record of each position held by an employee and the pay history of the employee in each position for the duration of the employee’s employment and for 3 years after the termination of the employee’s employment.
“Posting” means a “solicitation that is intended to recruit employment applicants for a specific available position” and that includes qualifications for desired applicants. It includes recruitment done directly by an employer or indirectly through a 3rd party. It includes postings made electronically or hard copy.
“Range of pay” means the range of pay that an employer anticipates relying on in setting wages for a position, including, but not limited to, reference to:
- Any applicable pay scale;
- A previously determined range of wages for the position;
- The actual range of wages for those currently holding equivalent positions; or
- The budgeted amount for the position. It does not include compensation that is based solely on commission.
Bernstein Shur’s Labor & Employment Group helps businesses of all sizes build compliant, productive workplaces through practical, real-world solutions. The group provides full-spectrum support on issues ranging from hiring and discipline to investigations, union relations, and employment litigation.
Anne-Marie L. Storey is a leading Labor and Employment attorney with more than two decades of experience who advises Maine employers on all aspects of workplace law, including compliance, risk management, employee relations, investigations, and litigation. She can be reached at [email protected].