Pay transparency laws began to be implemented a few years ago and have steadily increased. This practice involves openly sharing information within individual companies about compensation. This may include salary ranges, salary calculations, and even individual salary details. The goal is to prevent pay gaps that have historically occurred among women and racial or ethnic minority groups. There are now more than a dozen US states with such laws in effect, so it seems timely to give an update:
New Pay Transparency Laws in 2025
- Illinois (effective January 1, 2025) – impacts all employers with 15 or more employees
- Minnesota (effective January 1, 2025) – impacts all employers with 30 or more employees
- New Jersey (effective June 1, 2025) – impacts all employers with 10 or more employees
- Vermont (effective July 31, 2025) – impacts all employers with 5 or more employees
- Massachusetts (effective October 29, 2025) – impacts all employers with 25 or more employees
States with Existing Laws
- Maryland (2020)
- Colorado (2021)
- Connecticut (2021)
- Nevada (2021)
- California (2023)
- New York (2023)
- Rhode Island (2023)
- Washington (2023)
- Hawaii (2024)
What the Laws Do
Pay transparency laws require things such as publishing salary ranges for all job postings, including details about the benefits being offered, inform employees about promotions (including associated pay details), and more. Some laws require these disclosures only be made in written job postings; others may only require it during the interview process. Still others require the information be disclosed upon request or forbid retaliating against individuals who request this information. Almost all include fines for noncompliance that escalate for repeat offenses. Some laws may not be based on the state where the job is located. This means that employers may need to comply with these laws *even if* they are not located in a state with such a law on the books.
Recruiters who advertise jobs on behalf of their clients may need to comply with these laws as well. If you are not having clear conversations with your clients about pay transparency, advertising, and where suitable candidates may be located, it’s past time to be doing so. Avoiding this issue is likely to lead to negative backlash and legal peril for both recruiters and their employer clients.