Pay transparency laws are reshaping the hiring and compensation landscape. As more states enact legislation requiring employers to disclose salary ranges, businesses must stay ahead of evolving pay transparency compliance regulations to avoid legal risk and enhance employee trust.

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Why Pay Transparency Laws Matter for Employers

Pay transparency initiatives aim to:

• Promote pay equity
• Reduce gender and racial wage gaps
• Ensure candidates and employees are aware of salary expectations

Non-compliance can result in:

• Fines
• Lawsuits
• Reputational damage

But when done right, transparency can:

• Boost employee satisfaction and retention
• Strengthen your employer’s brand
• Build trust in the workplace

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Pay Transparency Laws by State (2025 Update)

Here’s a breakdown of current and upcoming state-specific salary disclosure laws that HR leaders and employers need to know.

States Requiring Salary Ranges in Job Postings

• California – Required for employers with 15+ employees
• Colorado – Required for any employer with 1+ employee in-state
• Washington – Required for employers with 15+ employees
• New York State (and NYC, Westchester, Ithaca) – Required for 4+ employees
• Massachusetts – Effective October 29, 2025 for employers with 25+ employees
• Illinois – Effective January 2025
• Minnesota – Effective January 2025
• Vermont – Effective July 31, 2025
• New Jersey – Effective June 1, 2025

States Requiring Disclosure Upon Application or Request

• Connecticut
• Nevada
• Rhode Island
• Maryland

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Upcoming Pay Transparency Laws in 2025

The following states are rolling out new or updated salary transparency laws in 2025:

• Massachusetts
• Illinois
• Minnesota
• Vermont
• New Jersey

These updates will impact how employers disclose pay ranges in job postings and during internal promotions or transfers.

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Remote Job Postings: What You Need to Know

If you’re posting a remote role, you must comply with salary transparency laws in any state where applicants might apply. Example: a remote job posted nationwide must meet Colorado, California, and New York standards—even if your HQ isn’t there.

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How States Define “Job Postings”

The definition of a “job posting” varies:

• California – Any medium (digital or print)
• Colorado – Any written or printed communication
• New York City – Any written description of a role
• Jersey City – All forms of posting
• Washington – Includes direct and indirect solicitations

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Legal and Compliance Risks of Ignoring Pay Transparency Laws

To stay compliant and reduce risk:

• Track changing state laws regularly
• Conduct annual pay audits
• Establish fair and consistent compensation practices
• Train hiring managers and recruiters on disclosure rules
• Avoid retaliation against employees who exercise their rights under transparency laws

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Pay Equity + Equal Pay Compliance

Your pay transparency efforts must align with Equal Pay Act and EEO compliance. It’s not just about posting ranges—it’s about proving those ranges are equitable across protected categories like:

• Gender
• Race and ethnicity
• Job category and seniority

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Emerging Trends in Pay Transparency

States actively exploring or proposing pay transparency bills in 2025 include:

• Alaska
• Tennessee
• Indiana
• Georgia
• South Dakota
• Kentucky
• Missouri
• Virginia
• Oregon
• Pennsylvania
• Maine
• South Carolina
• West Virginia
• Chicago (city-specific legislation)

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FAQs About Pay Transparency Compliance

Q: Which states require salary ranges in job postings?
A: CA, CO, NY, MA (starting Oct 2025), WA, CT, IL, and more. Each has its own threshold and rules.

Q: What is required in a compliant job posting?
A: A reasonable salary range (in good faith), plus in some states, benefits or commission disclosures.

Q: What’s the penalty for non-compliance?
A: Fines, potential lawsuits, and public disclosure of violations.

Q: Do these laws apply to remote jobs?
A: Yes, if a candidate in a regulated state can apply, the job posting must comply.

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Partner With Compliance Experts

The rules are changing fast. Don’t get caught off guard. MP’s HR and legal experts can help you:

• Avoid costly penalties and brand damage
• Stay compliant with evolving salary transparency laws
• Build fair, competitive compensation strategies

Make sure to subscribe to MP’s blog and stay on top of the most up-to-date news and trends in the business realm.