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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.

Starting January 1, 2025, Illinois will require enhanced pay transparency requirements. These changes align Illinois with a growing trend across the U.S. aimed at promoting pay transparency in hiring practices. Here's a breakdown of what this means for employers.

Post Updated: December 17, 2024:

New Jersey's Pay Transparency Law Takes Effect June 2025

New Jersey has joined the growing list of states advancing pay transparency with Governor Phil Murphy signing Senate Bill 2310 into law effective June 1, 2025. This law will require employers (including consulting firms, job placement, referral, and employment agencies) with at least 10 employees over 20 calendar weeks to disclose salary ranges and general benefits in job postings, whether internal or external.

Maryland's new wage transparency law (SB 525/HB 649) is in force as of October 1, 2024 and requires all public and private employers to include detailed compensation information in all job postings, internal and external. The law covers positions performed at least partially in Maryland, including remote and hybrid roles. There is no minimum employee requirement for coverage under this law. OutSolve offers a helpful Maryland Pay Equity Checklist (see below) to assist you in complying with this new law.

On July 31, 2024, Massachusetts Governor Maura Healey signed the "Frances Perkins Workplace Equity Act," a significant step towards pay transparency in the state. This new legislation imposes crucial requirements on employers, aimed at promoting fair pay practices and reducing wage disparities.

Pay transparency laws continue to gain traction in the United States as a measure to address the persistent gender pay gap and promote fair compensation. By shedding light on compensation practices, pay transparency empowers employees to make informed career decisions and encourages employers to conduct fair and equitable pay practices. Many employers are also adopting the principles of pay transparency for strategic reasons, as a way to strengthen and differentiate their talent practices.