Well over a dozen states have already implemented PAY TRANSPARENCY LAWS. And earlier in ’25, Illinois, Minnesota, and New Jersey enacted the legislation. Similar laws will take effect in Vermont and Massachusetts before the end of this year, and the District of Columbia, Cleveland, Ohio,  and several other cities and counties also have their own pay transparency laws.

While there are some differences from state to state, pay transparency laws generally require employers to disclose specific information about employee compensation in all job postings. The rules typically apply to new open positions where external candidates and candidates considering internal transfers can be expected to look at job posts. 

The specific requirements of these laws can vary depending on the jurisdiction. Still, they try to promote fairness, prevent wage discrimination, and reduce pay disparities based on factors like gender, race, and ethnicity.

The laws require employers to be ‘transparent’ with both salary ranges and benefits. Some also prohibit retaliation against employees who talk about their pay with colleagues, and require employers to report pay data to government agencies. Another twist – some states require disclosure of salary range while other states require you to provide pay range. 

Yes, there’s a difference. Think of salary ranges as a subset of pay ranges.

When building your comp strategy and ensuring compliance, especially in multi-state operations, you’ve got to read the fine print of each law. 

Here are a few more details for each state:  

• In California, Colorado, Hawaii, Illinois, Nevada, Minnesota, New York, Vermont, and Washington State:

  • Employers must disclose the salary range for a job to applicants and employees. 

• In Connecticut, Maryland, Massachusetts, New Jersey, and Rhode Island: 

  • Employers are required to disclose the pay range for a job to applicants and employees. 

• In Washington, D.C., employers must disclose pay ranges and healthcare benefits in job postings. The law also bans salary history questions and prevents retaliation against employees discussing compensation.

Final Thoughts from CAPTAIN HR

• When in doubt, check how the law defines “compensation” or “wages” to dictate what must be disclosed in a job posting or during the hiring process. 

• Actionable Advice for Employers

  • When posting jobs in states with transparency laws, use the term required by statute and include all required compensation elements.

  • Be specific about what’s included: 

    • Is it base pay only, or base + incentives?

    • Minimum to maximum projected salary, or an hourly wage that must be provided. 

• Base pay means the initial rate of an employee’s compensation, excluding bonuses, benefits, or other forms of variable compensation.

• Other compensation may include bonuses, commissions, stock options, or other incentives, depending on the area’s specifics.

• Some states require disclosure upon request or at specific stages in the hiring process instead of the job posting itself.

When building your compensation strategy and ensuring compliance, especially in multi-state operations, you’ve got to read the fine print of each law, because what you say must match legally with what you mean.