Pay Transparency Laws: State Requirements, Employer Compliance & Key Takeaways

Pay transparency — the practice of openly sharing compensation information — is gaining momentum across the United States. Originally viewed as a voluntary fairness initiative, it’s now a legal requirement in many jurisdictions.

As more states mandate disclosure of salaries, benefits, and promotion opportunities, employers must adapt their compliance strategies. Whether you operate in one state or many, understanding how these laws differ is essential for avoiding penalties and maintaining trust with your workforce.

Looking ahead, employers should be prepared for more states to follow suit. The growing emphasis on wage equity and fair pay practices means additional states are likely to enact similar transparency laws in 2026 and beyond. Companies that begin building consistent compensation frameworks now — including defined pay ranges, documentation practices, and internal communication policies — will be better positioned when new regulations arrive. Treating pay transparency as an opportunity rather than a compliance hurdle can strengthen trust with employees and demonstrate leadership in workplace fairness.

What Is Pay Transparency?

Pay transparency refers to an employer’s openness about compensation. It can include public or internal sharing of details such as:

• Salary or hourly wage ranges
• Bonuses and commissions
• Stock options or incentives
• Pay increases tied to promotions
• Total compensation and benefits

While no law forbids companies from sharing this information, Colorado became the first state to mandate it in 2021, paving the way for others to follow.

Understanding Pay Transparency Laws

Pay transparency laws require employers to disclose salary information — either to current employees, job candidates, or the public through job postings.

Some laws also introduce promotion transparency, obligating companies to notify all employees of advancement opportunities. For example, Colorado’s Equal Pay for Equal Work Act mandates that employers announce promotions internally the same day they’re posted.

Coverage varies: some laws apply only to larger organizations, while others extend to any employer with one or more workers in the state.

Why Pay Transparency Matters

• Reduces wage disparities and pay discrimination
• Increases trust and engagement among employees
• Empowers job seekers to make informed career decisions
• Encourages fairness in promotion and hiring practices

Even in states without active laws, transparency is becoming an employee expectation — a sign of ethical leadership and equity in the workplace.

Why Multi-State Employers Face Unique Challenges

For employers operating in multiple states, each state’s rules may differ, creating a complex compliance environment. A job posting that meets California’s requirements might not satisfy those in Colorado or New York.

Multi-state employers need to navigate each state’s rules carefully — ensuring job postings, pay disclosures, and internal practices comply wherever employees are located or where applicants reside.

To stay compliant, adopting a uniform system for documenting pay ranges, updating job postings, and training managers is a practical strategy. Aligning with the strictest state standard is often the safest way to maintain consistency and reduce risk.

States with Pay Transparency Laws in 2025

As of 2025, 14 states have enacted or will soon enforce pay transparency laws:

California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Rhode Island, Vermont, and Washington.

While requirements differ, these laws share a common purpose: to enhance pay equity and visibility.

California

• Applies to employers with 15+ employees (even one in CA)
• Must disclose salary ranges in job postings and upon request
• Prohibits asking applicants about prior pay history

Colorado

• Applies to all employers with at least one employee in the state
• Must list compensation and benefits in job postings
• Requires internal promotion announcements

Connecticut

• Effective since 2021
• Must provide salary info upon request or before extending an offer
• Applies to job candidates and current employees changing positions

Delaware

• Beginning 2027
• Required to include the pay range and a general description of benefits and other compensation in all job postings
• Applies to Delaware-based positions and certain remote roles offered by Delaware employers

Hawaii

• Applies to employers with 50+ employees
• Must post accurate salary ranges in job listings
• Excludes promotions and collective bargaining positions

Illinois

• Effective Jan. 1, 2025
• Applies to employers with 15+ employees
• Requires pay scale and benefits summary in postings

Maryland

• In effect since 2020
• Must provide wage range upon applicant’s request

Massachusetts

• Takes effect Oct. 29, 2025
• Applies to employers with 25+ employees
• Requires pay ranges in job postings and upon employee request
• Fines up to $1,000 for noncompliance

Minnesota

• Effective Jan. 1, 2025
• Applies to employers with 30+ employees
• Requires good-faith salary estimate and benefit overview in postings

Nevada

• Effective since Oct. 2021
• Employers must share salary info with applicants who interview
• Current employees seeking promotions may also request pay data

New Jersey

• Effective June 1, 2025
• Applies to employers with 10+ employees
• Must include pay range, benefits, and additional compensation in postings

New York

• Applies to employers with 4+ employees
• Covers roles performed in or reporting to NY-based offices

Rhode Island

• Effective since 2023
• Requires salary range disclosure at hire, upon request, or before promotion

Vermont

• Effective July 1, 2025
• Applies to employers with 5+ employees
• Must include hourly wage or salary range in postings
• Commission and tipped roles must clearly state pay structure

Washington

• Effective since Jan. 1, 2023
• Applies to employers with 15+ employees
• Requires salary range disclosure for job postings, promotions, and transfers

States with Proposed Pay Transparency Laws

The following states have introduced but not yet enacted similar legislation:

Alaska, Kentucky, Maine, Michigan, Missouri, Montana, Oregon, South Dakota, Virginia, and West Virginia.

Employers operating in these states should monitor developments closely, as legislative trends indicate a growing movement toward pay transparency nationwide.

Employer Takeaways & Compliance Tips

1. Audit pay practices: Ensure compensation structures are consistent and well-documented.
2. Update job postings: Include accurate pay ranges and benefits descriptions where required.
3. Train hiring teams: Make sure HR and recruiters understand disclosure obligations.
4. Standardize processes: For multi-state employers, align postings with the strictest requirements.
5. Communicate clearly: Educate employees about promotion transparency and internal opportunities.

Proactive compliance not only reduces legal risk but also strengthens employee trust and your brand reputation.

Looking Ahead: 2026 and Beyond

Pay transparency is no longer optional in many jurisdictions. As new laws have taken effect in 2025, employers must continue to adapt to evolving expectations for fairness and openness in compensation.

More states are expected to adopt pay transparency laws in 2026 and beyond. The national conversation around fair pay and workplace equity continues to grow, and regulators are taking note. Employers that prepare now — through proactive audits, transparent communication, and consistent pay structures — won’t just ensure compliance; they’ll position themselves as trusted, equitable employers in an increasingly transparent labor market.

Even if your state doesn’t yet require salary disclosure, preparing now can position your organization as a leader in equity, compliance, and trust. For a full overview of how pay transparency fits into broader labor reforms, see our guide Navigating Labor Law Changes: Key Updates and What They Mean for You.