Pay Transparency Laws by State: HR’s Latest Compliance Guide

The pay transparency trend has been strong for the past couple of years and will get another major boost in 2025. At least five more states—Illinois, Massachusetts, Minnesota, New Jersey and Vermont—are lined up to have pay transparency laws take effect next year.

Here’s what HR needs to know about pay transparency laws, why they are becoming more important, and which states and localities have passed pay transparency legislation.

What Are Pay Transparency Laws?

Generally speaking, pay transparency laws require employers to openly share information relating to job compensation with applicants – and sometimes with employees. They may require employers to disclose pay ranges for a particular position in a job posting or at some other point during the hiring process.

These laws are important because they help reduce the pay gap between men and women. They also help reduce pay inequities more broadly by preventing discrimination based on other protected categories, like age and religion.

In addition to ensuring legal compliance, wage transparency can reap other valuable benefits. Being transparent about compensation fosters trust with employees and shows them you are committed to supporting pay equity and preventing improper wage gaps. And that’s a big win for employers in the battle to find and retain top talent.

How HR Can Comply With Pay Transparency Regulations

What can employers, especially those operating in multiple states, do to comply with evolving pay transparency legislation?

Regular check-ins on compensation packages across the company is a good best practice, according to Jamila S. Mensah, partner at Norton Rose Fulbright.

“Specifically, for multistate employers, use the broadest approach,” Mensah said. “Figure out which jurisdiction has the strictest law and consider whether it’s reasonable to apply that to your practices generally. If you’re complying with the strictest of them, that should check the boxes everywhere and simplify your processes for compliance, from an administrative perspective.”

Which States Have Pay Transparency Laws?

Here’s a look at which states currently have pay transparency laws. This list is sure to grow. If you don’t see your state on it right now, that could easily change in the future.

California

In September of 2022, Gov. Gavin Newsom signed a new California pay transparency law that expanded already existing state-law transparency requirements. The new law took effect at the start of 2023.

Under the previously existing law, California employers had to provide pay scale information upon receipt of an applicant’s request, if the applicant had completed an initial interview.

Under the 2023 law, employers who have at least 15 employees must disclose a position’s pay scale in all job postings. In addition, they must provide pay scale information for a position to any applicant “upon reasonable request.”

The new law also requires employers to provide salary range information to current employees upon a current employee’s request.

Employers covered by the law cannot rely on an applicant’s salary history to determine whether to hire an applicant and what to pay them. Nor can they seek information about an applicant’s salary history at the time of hire or any other time leading up to employment.

They can still ask applicants what they would like to be paid, and they are also in the clear if an applicant voluntarily discloses their salary history or if their salary history information is disclosable to the public under an applicable federal or state law.

Penalties range from $100 to $10,000 per violation.

Colorado 

The state’s Equal Pay for Equal Work Act took effect in 2021. The law requires employers to include information about job compensation in job postings and tell their current employees about opportunities for promotions.

Colorado’s pay transparency law was amended to impose new requirements on employers beginning at the start of 2024. The amendments require employers to provide notice internally for all job opportunities and not just those relating to promotions. They also set new post-selection notification requirements. More specifically, employers must provide information about the newly selected candidates to other employees with whom the new hire will work on a regular basis.

Job postings must include the hourly or salary compensation or the range of the hourly or salary compensation; a general description of any other compensation or benefits; and the date when applications for the job will no longer be accepted.

The law covers public and private employers that employ at least one person in the state.

Violations may result in fines ranging from $500 to $10,000 per violation.

Connecticut

The state of Connecticut’s pay transparency requirements went into effect in 2021. It applies to all employers with one or more employees.

As to applicants, the Connecticut law says employers have to provide the wage range for the position in question upon the applicant’s request or before an offer is made – whichever is earlier.

As far as employees, employers must tell employees the wage range for the employee’s position at the time of hire, when their position changes, or upon the employee’s request.

This state law also blocks employers from both inquiring with a third party and directing a third party to find out about an applicant’s wage and salary history. There’s no problem for the employer if the applicant voluntarily discloses this information or if state or federal law authorizes the disclosure of the information.

An employer that violates this law may find itself in court, as the law specifically says violations can be redressed by court actions. Applicants or employees who sue successfully can get compensatory damages, attorneys’ fees and costs, punitive damages and other relief. They have two years to file a lawsuit.

Hawaii

Hawaii’s pay transparency requirements took effect at the start of 2024.

Under the Hawaii pay transparency law, employers with at least 50 employees must include a job’s salary range or hourly rate in job postings and advertisements.

The law does not require the posting of wage ranges for job listings that involve internal transfers or promotions. Nor does it cover public employers, if pay is determined by collective bargaining.

The law does not set out specific penalties for violations. The Hawaii Civil Rights Commission accepts complaints that allege a violation of the law, and employers may face lawsuits for alleged violations.

Illinois

Effective January 1, 2025, Illinois employers with 15 or more employees must include pay scale and benefits information in job postings. The scale included must be a “good faith” range that the employer reasonably expects to offer a successful candidate.

In 2023, Gov. J.B. Pritzker signed HB 3129, which amended the state’s Equal Pay Act. Under the amended legislation, the pay disclosure requirements apply to jobs that will be performed:

• At least in part, in Illinois, or 
• Outside of Illinois, if the hired employee will report to a supervisor, office or other work site in Illinois.

If an employer uses a third party during the recruiting or hiring process, then the employer has to provide the pay range and benefits info to the third party – or provide a hyperlink to where the information is available. 

Moreover, employers must be transparent about internal promotion opportunities. They must announce or post all opportunities for promotion to current employees no later than 14 calendar days after making an external job posting for the same position.

The law also requires employers to maintain records of job postings, pay ranges, benefits and wages for each position for at least five years.

The state Department of Labor will oversee enforcement and may issue penalties for violations.

Penalties for non-compliant job postings vary, depending on whether they are active at the time of the Department’s notice and whether the employer has had previous violations.

For active job postings:

• First offense: Employers are given a 14-day cure period to remedy the violation, followed by a fine not to exceed $500.
• Second offense: A 7-day cure period is provided, with fines up to $2,500.
• Third or subsequent offense: No cure period is allowed, with fines up to $10,000.

For non-active job postings:

• First offense: Fines up to $250.
• Second offense: Fines up to $2,500.
• Third or subsequent offense: Fines up to $10,000.

Maryland

Maryland’s pay transparency requirements were first set out in a state law called the Wage History and Wage Range law, which amended the state’s Equal Pay for Equal Work Law. The amendments that created the pay transparency law went into effect in October 2020. The Equal Pay for Equal Work Law applies to all employers, regardless of size.

Under the law, employers cannot ask applicants about their salary history, and they cannot have a third party discover that information, such as via a background check on the applicant.

Upon an applicant’s request, a wage range for the position sought must be provided. Employers can’t retaliate against applicants for making the request.

Once an offer is made, the employer can raise the compensation offered based on the applicant’s voluntary disclosure of their prior salary history. But it may not rely on the prior history if doing so would create an unlawful pay differential.

Employers who violate this law can be fined up to $300 for an initial violation and as much as $600 for additional violations that occur within three years of the first one.

Maryland passed more pay transparency legislation, which took effect in October 2024.

It requires employers to be more proactive about pay transparency by including the following information in job listings:

• The wage range for the position
• A general description of included job benefits
• Any other compensation offered for the position.

Under the law, “wage range” is the minimum and maximum hourly rate or salary for the position, set in good faith. The wage range may include:

• Any applicable pay scale
• Any previously determined minimum and maximum hourly rate or salary
• The minimum and maximum hourly rate or salary for someone holding a comparable position, or
• The amount that is budgeted for the job.

The state will develop a form that employers can complete to meet the law’s pay transparency requirements.

If there is no internal or public posting for the position, the employer must make the required disclosures before discussing compensation or otherwise upon request.

Importantly, employers must also keep a record showing compliance with the law. These records must be kept for at least three years after the job is filled. If the position is not filled, the records must be kept for at least three years after the job was posted.

Initial violations will generate a letter to the employer compelling compliance with the law. A second violation will result in a civil penalty of up to $300 for each affected applicant or employee. That amount doubles for subsequent violations within three years of any previous one.

Massachusetts

The Massachusetts pay transparency law imposes pay disclosure requirements for employers.

Employers with 25 or more employees must disclose salary range information on job postings. This pay disclosure requirement also applies to promotions and transfers.

In addition, private employers with at least 100 employees must submit certain pay-related data to the state on an annual basis.

Employers may not retaliate against any applicant or employee for seeking to enforce their rights under the law.

The law will be enforced by the state attorney general’s office. A first offense generates a warning. A second offense may generate a fine of up to $500. The maximum rises to $1,000 for a third offense and $25,000 for subsequent offenses.

The scheduled effective date for this law is July 31, 2025.

Minnesota

In May 2024, Gov. Tim Walz signed an Omnibus Labor and Spending Bill that included a pay transparency provision that applies to Minnesota employers with 30 or more employees.

Beginning Jan. 1, 2025, job postings must include a “starting salary range” for the opening. If an employer doesn’t plan to offer a range, then it must list a “fixed pay rate” for the job. The law does not allow open-ended salary ranges, and all compensation amounts listed must be “good faith estimates” for the position.

Employers must also include a general description of benefits and other compensation, including “any health or retirement benefits” that will be part of a new hire’s compensation package.

Moreover, if an employer uses a third party, such as a recruiting agency, then the agency will be required to include the required pay transparency disclosures in job postings.

The Minnesota Department of Labor and Industry and the Minnesota Attorney General will have the authority to oversee compliance issues. The law doesn’t specify penalties for noncompliance.

Nevada

In Nevada, pay transparency requirements took effect in October of 2021.

The Nevada pay transparency law applies to employers and employment agencies. It bars employers from seeking the wage or salary history of applicants. Under it, employers may not rely on an applicant’s wage or salary history to decide whether to offer the applicant a position or to decide the applicant’s pay rate.

Once an interview has been completed, employers must disclose the wage or salary range or rate for the position. The same disclosure requirement applies to transfers and promotions, if the employee has applied for the job, has completed an interview or been offered the job, and has asked for the information.

Employers are free to ask about salary expectations for the position being sought.

The text of the law does not exempt any employer based on size.

Violations carry penalties of up to $5,000 per violation.

New Jersey

In November 2024, Gov. Phil Murray signed SB2310, which will require compensation transparency in job postings for internal and external positions in New Jersey. 

The law takes effect on June 1, 2025.

The legislation applies to employers that: 

• have “10 or more employees over 20 calendar weeks,” and 
• do business, employ individuals and take applications in New Jersey.

Under S2310, job postings must include: 

• the hourly wage or salary, or a range of the hourly wage or salary, and
•  a “general description of benefits and other compensation programs for which the employee would be eligible.” 

However, S2310 doesn’t prohibit an employer from “increasing the wages, benefits, and compensation identified in the job opening posting at the time of making an offer for employment to an applicant.”

As for penalties, employers who violate the law will face up to a $300 fine for the first violation and up to $600 fines for subsequent violations. 

New York

New York state’s pay transparency law went into effect in September of 2023.

Employers with at least four employees must meet the law’s requirements.

Under this law, covered employers must list the salary range for open positions in job postings and advertisements. If the compensation for a position is based on commission, the employer must disclose this fact.

Job postings and advertisements must also include the job description for the position if there is one. They also need to maintain records relating to compensation ranges and job descriptions.

The law applies to new hires as well as internal promotions and transfers.

The law does not apply to temporary help firms that are seeking to hire workers to perform work for other employers.

Employers that violate the law are subject to penalties of $1,000 for a first violation, $2,000 for a second violation, and $3,000 for any additional violations.

Rhode Island

Rhode Island’s pay transparency law took effect at the start of 2023.

At an applicant’s request, and before discussing compensation, employers must provide the wage range for the position that is being sought.

At the time of hire and when an employee moves into a new position, the employer must provide this information.

In addition, the information must be provided to current employees upon the employee’s request.

The pay transparency law bans inquiries into an applicant’s wage history and reliance on such history when deciding whether to hire them and what to pay them. In addition, employers may not stop employees from talking about their wages or the wages of other employees.

If an employer offers a particular wage, and the applicant then voluntarily discloses their wage history without prompting, then the employer can rely on that disclosure to offer a higher wage offer – as long as the higher wage does not create an unlawful pay differential based on a protected class such as gender.

Example: An employer offers a male applicant a job at an annual salary of $100,000. The applicant voluntarily discloses that he is making $150,000 in his current position. The employer then offers the applicant $200,000. All other employees holding the same position are female. They all have the same level of expertise and experience as the applicant, and they are all paid $100,000. In this example, the higher wage creates an unlawful pay differential.

The law does not set out a minimum number of employees that must be retained for an employer to be covered by it.

Violators can be required to pay up to $1,000 for a first violation; up to $2,500 if there has been a prior violation within the previous five years; and up to $5,000 if there have been two or more violations within the prior seven years.

Vermont

This past summer, Gov. Phil Scott signed H. 704, which will require many Vermont employers to disclose compensation ranges in internal and external job postings. Specifically, employers will have to list minimum and maximum ranges for annual salaries or hourly rates – and those ranges must be “good faith” estimates.

The new pay transparency law is set to take effect on July 1, 2025. It applies to:

• Vermont employers with five or more employees, and 
• Job postings for positions with a physical location in Vermont and remote positions that will predominately do work for and report to a location in Vermont.

The legislation stipulates that employers don’t have to include a salary range for commission-based roles, but they have to disclose that fact. The law also says that job ads for tipped positions have to disclose that it is a tipped role and include the base salary or a salary range for the position. 

For now, employers should stay tuned to the Vermont Attorney General’s website. The office will publish guidelines on the new pay transparency law by Jan. 1, 2025 – six months before the law takes effect. 

Washington

Washington state employers with at least 15 employees must include the wage scale or salary range in each posting for each job opening.

This Washington pay transparency law became effective at the start of 2023.

They must also generally describe all the benefits and other compensation that will be offered to the hired applicant.

The law applies to recruitment that is done directly by an employer or indirectly through a third party.

If a current employee is offered an internal transfer or a promotion and asks for the wage scale or salary range for the new position, the employer must provide that information.

Violators are subject to a penalty of up to $500 for a first violation and up to $1,000 or 10% of damages (whichever is greater) for additional violations. In addition, aggrieved individuals can sue for the greater of actual damages or $5,000.

Other Jurisdictions With Pay Transparency Laws

In addition to states, at least one county and several cities have passed their own pay transparency laws. Here are some notable local pay transparency laws.

Washington, D.C.

In early March 2024, Washington, D.C. passed a new law that amended a previously existing and much narrower law relating to wage transparency.

Under it, employers must provide the minimum and maximum projected hourly pay or salary in all job listings and position descriptions advertised.

Before the first interview, they must also disclose the existence of any healthcare benefits that employees would receive if they accepted the position.

The law gives the Attorney General the power to investigate potential violations and bring court actions for enforcement.

The new law also bans employers from screening potential employees based on their wage history. They must also post a workplace notice about employee rights under the law.

An earlier applicable law called the Wage Transparency Act of 2014  says Washington, D.C. employers may not require employees to “refrain from inquiring about, disclosing, comparing, or otherwise discussing” their own wages or the wages of another employee.

It also prohibits retaliation against any employee who does so.

Under the law, employers generally may bar employees who have regular access to wage information – like HR employees – from sharing that information.

The law does not require employers or employees to disclose an employee’s wages in response to an inquiry from another employee.

Fines range from $1,000 for a first violation to $5,000 for a second violation to $20,000 for each subsequent violation.

Jersey City, New Jersey

Jersey City’s pay transparency requirements are set forth by a Jersey City local ordinance that was approved in 2022.

Under the ordinance, employers with at least five employees must disclose a minimum and maximum salary or hourly range in job postings and advertisements. Employers covered by the ordinance may not screen job applicants based on their salary history or require that an applicant’s salary history satisfy any minimum or maximum.

The law also applies to transfers and promotions.

The city has also said job postings must disclose job benefits being offered.

The ordinance says violations are “punishable through state law,” and the city has said violations are punishable by fines of up to $2,000.

Ithaca, New York

Ithaca’s requirements relating to pay transparency took effect at the start of September 2022.

The Ithaca pay transparency law requires all employers with at least four employees to disclose a salary range when advertising a job, promotion or transfer.

The ordinance does not include any information relating to penalties for violations.

New York City, New York

New York City’s pay transparency requirements became effective at the start of November 2022.

The law applies to employers with at least four employees, and it requires all advertisements for a job, promotion or transfer to include a pay range. The range must include a minimum and maximum; it cannot be open-ended.

The law does not require disclosure of other forms of compensation, such as employer-provided insurance or overtime pay, in job advertisements.

The city has said violators “may have to pay monetary damages to affected employees, amend advertisements and postings, create or update policies, conduct training, provide notices of rights to employees or applicants, and engage in other forms of affirmative relief.”

It has also said civil penalties of up to $250,000 may be assessed for violations that are not corrected within 30 days following receipt of notice of a violation.

Westchester County, New York

Westchester County’s pay transparency law took effect in November 2022.

The law applies to all employers in the county, except for the county itself.

Job postings for any job, promotion or transfer must disclose the pay range of the salary or hourly rate for the position.

The law does not require disclosure of other types of compensation, such as stock options, commissions or overtime pay, in job postings.

Employers may not rely on an applicant’s wage history to determine wages unless the applicant discloses that information voluntarily in support of a request for a better offer.

Nor can they require applicants to disclose their current or former wages. They are also barred from seeking that information on their own.

Violators can be subjected to a civil penalty of up to $125,000, which may be increased to up to $250,000 in cases involving a “willful, wanton or malicious” violation.

Cincinnati, Ohio

This city’s pay transparency requirements took effect in March 2020.

The Cincinnati pay transparency ordinance applies to employers with at least 15 employees. Those employers may not inquire about an applicant’s salary history or screen job applicants based on their current or prior compensation or salary history.

Upon request, employers must provide the pay scale for the position being sought. This requirement applies only after a conditional job offer has been made.

The law does not apply to internal transfers or promotions. Nor does it apply to applicants who have worked for the employer within the previous five years, provided the employer has the salary history relating to the applicant’s prior employment with it. The law does not apply to positions whose salaries are set by collective bargaining.

Toledo, Ohio

Toledo’s Pay Equity Act took effect in June 2020. It applies to employers with at least 15 employees.

Employers may not screen job applicants based on prior wages, benefits, other compensation or salary history. They are barred from relying on an applicant’s salary history when deciding whether to offer employment when determining salary or other benefits.

Upon request and once a conditional offer has been made, employers must provide a pay scale for the job.

The law does not apply to internal transfers or promotions. Nor does it apply to applicants who have worked for the employer within the previous five years, provided the employer has the salary history relating to the applicant’s prior employment with it. The law does not apply to positions whose salaries are set by collective bargaining.

Aggrieved applicants have two years from the accrual of the cause of action to pursue a private right of action under the ordinance.

Best Practices: 3 Steps to Prepare Now

The trend toward pay transparency is here to stay, and it is likely to continue to strengthen.

If you’re in a state that’s enacting pay transparency legislation next year, here are three steps your HR department can take now to prepare:

• Develop clear communication strategies for pay transparency. Be prepared to answer questions about salary ranges during the interviewing process. Use the range as a starting point for negotiation, highlighting the total compensation package (benefits, bonuses, etc.).
• Standardize salary ranges. Ensure salary ranges are consistent internally and reflect the market value for specific positions.
• Focus on value beyond salary. Don’t let salary overshadow your company culture, growth opportunities and other benefits. Take the time to write compelling job descriptions that showcase your employer value proposition beyond just compensation.