Ultimate Guide to Pay Transparency Laws by State

Pay transparency laws are on the rise in the United States.  Colorado led the charge on this initiative by implementing the first pay transparency state law in 2019 and many other states have followed since. While pay and salary was once considered a topic no one discussed, it is now gaining traction and requiring employers to be upfront and honest in job listings when it comes to disclosing salary ranges and benefits.

Both employers and employees are impacted by these laws. Employers who are in a state that has a pay transparency law must ensure all job postings, both internal and external, include the necessary information required by their state. Job seekers benefit from these laws because they can now view the salary range of a job before even applying. This can lead to better salary expectations and strong negotiating power from the employees since they know how high the salary range can go. 

Overall, pay transparency laws lead to increased trust between both parties, improved morale, and a better reputation for employers. 

What is Pay Transparency? 

Let’s start with the basics. What are pay transparency laws? These laws require employers to disclose salary information to both external job seekers and internal employees. The goal of these laws is to foster transparency and create fairness and equitableness throughout your organization. Some typical things that need to be included in job postings for states that have pay transparency laws are: 

• Job Pay or Salary: The requirements for this can vary by state. Often, they require employers to post a pay range in their job description so job seekers can see the minimum and maximum salary for the position. Other states only require the salary disclosure after the first round of interviews. 
• Total Compensation and Benefits: Some states require employers to also include things like benefits, commission potential, bonuses, and more in job listings so job seekers can get a holistic view of the total compensation package with both the salary range and benefits included. 

Pay transparency laws help to promote a fair and balanced workplace through pay equity and closing wage gaps. These laws are beneficial to both employees and employers alike.  

Pay Transparency Laws by State 

As of February 18, 2025, the following states have pay transparency laws: 

• California: Employers with 15 or more employees must include pay ranges in all job postings, whether the position is filled in-person or remotely. This law also pertains to employers based in other states but who have one or more employees working in California. Employers of any size must provide the pay scale for a position if their employee requests it. 
• Colorado: Employers with operations in Colorado or have employees working in the state must disclose compensation ranges for all job postings, including internal promotions. 
• Connecticut: Employers in Connecticut with one or more employees are required to disclose the wage, wage range, and a general description of benefits in internal and external posts for jobs, promotions, transfers, or other employment opportunities at the applicant’s request or prior to the time the applicant is made an offer of compensation. This law also mandates equal pay for “comparable work.” 
• Hawaii: Employers in Hawaii must disclose an hourly rate or salary range that reflects the expected compensation in job listings. This law also prohibits employers from discriminating against any protected category by paying employees less for similar work. In cases where a company has fewer than 50 people, has internal transfers or promotions inside the organization, or has positions where salary is determined through collective bargaining, Hawaiian employers are exempt from this law.   
• Illinois: Employers in Illinois with more than 15 employees must include the pay scale and benefit information in job postings. This pertains to employers who are at least in part in Illinois or if the hired employee will report to a supervisor, office, or other worksite in Illinois. Promotion opportunities must be announced no later than 14 calendar days to current employees after making an external post. Records of job postings, pay ranges, and benefits must be kept for at least five years. 
• Maryland: All public and private employers in Maryland must include compensation information in job postings such as a wage range and benefits and other compensation. They must also maintain records for wages, job classifications, and other employment conditions for three years after a position is filled or the job posting is made if the position remains unfilled.  
• Massachusetts: Employers in Massachusetts with 25 or more employees must include a salary range in job postings or provide this information to employees in certain circumstances such as promotions or transfers.  
• Minnesota: Employers in Minnesota with at least 30 employees at one or more sites must include starting salary range, benefits and other compensation, and the scope of the job in all job postings.  
• Nevada: Employers in Nevada are barred from asking the wage or salary history of their applicants and must not rely on wage history to decide the position pay rate. Once an interview has been completed, employers must disclose the salary range for all job postings, transfers, or promotions.  
• New Jersey: Employers in New Jersey with at least 10 employees over 20 calendar weeks are required to disclose salary ranges and general benefits in internal and external job postings. Employers must also make an effort to announce promotion opportunities to all employees in the affected department before making a promotion decision. Employers are allowed to increase compensation when extending a job offer but must provide an accurate salary and benefits listing in the job posting.  
• New York: Employers with four or more employees must list compensation ranges for job listings, promotions, or transfer opportunities. Employers must also clarify if a position is commission-based and prohibits employers from retaliating against employees or applicants who request this information.  
• Rhode Island: Employers in Rhode Island must provide a pay range at the applicant’s request and before discussing compensation. Employers must also provide this information at the request of current employees. Employers are not allowed to request an applicant’s salary history. 
• Vermont: Vermont's pay transparency law goes into effect on July 1, 2025. Employers with at least five employees whose office is physically located in Vermont, or have remote roles tied to Vermont-based offices, are required to disclose the compensation range for any internal or external position. Exceptions are made for commission-based or tipped positions.  
• Washington: Employers in Washington must be transparent about promotion opportunities and disclose salary ranges in all job postings. Employees are allowed to freely discuss their wages without fear of retaliation and gender should not influence the compensation for similar roles.  
• Washington, D.C: Employers in Washington, D.C. must provide a salary range in job listings and must disclose benefits before the first interview. This law also bans employers from screening employees based on their wage history.  

Best Practices for Employers 

If you live in a state with a pay transparency law, you should be following all components of that law to reduce risk. If companies do not follow pay transparency laws, they are subject to significant financial penalties.  

If you live in a state without a pay transparency law but want to start being proactive with your salary transparency, here are a few things you can start doing: 

• Conduct a pay equity audit to see if you have wage gaps and address those gaps 
• Implement a pay philosophy and salary structure that is fair for all employees 
• Include salary range and benefits information in your job postings 

What State Pay Transparency Laws Mean for your Organization 

Employers have a lot to juggle when it comes to pay transparency. Ensuring you stay compliant should be your top priority to mitigate risk and provide a transparent work environment for employees. 

OutSolve has expertise in consulting on state pay transparency laws, state pay reporting and pay equity audits. If you have a question about what you should be doing or would like assistance in conducting an audit or creating a compensation structure, reach out to us today.