What You Need to Know About the Connecticut Pay Transparency Law

Connecticut’s pay transparency requirements are not new, but they are increasingly high risk for employers who haven’t fully aligned their hiring and compensation practices. HB 6380 (Public Act 21-30) has been in effect since October 1, 2021, and state regulators want to know if employers are meeting the letter and spirit of the law. If your compensation processes or job postings are still catching up, now is the time to act.  

Here's What You'll Learn

Overview of the Law and Requirements 

Connecticut’s Pay Transparency Law went into effect on October 1, 2021, aiming to ensure fairness and equity in compensation practices. The law includes several provisions that impact employers, employees, and prospective employees.  

The law covers four main components including: 

1. Equal pay for comparable work 
2. Wage range transparency 
3. Salary history ban 
4. Freedom to discuss wages 

Who Must Comply? 

If you have a physical office or employ at least one person in Connecticut, you must comply with this law. 

So, even for a small operation with just one employee in Connecticut, you need to make sure you’re compliant  

What is Required? 

What exactly must HR teams do under the Connecticut pay transparency law? The key areas include (Sources: CT DOL CT.gov, HR Morning):  

Equal Pay for Comparable Work 

The law mandates that employees performing similar duties under similar conditions must receive equal pay. Employers must be able to justify any pay differences based on legitimate factors like seniority, merit, or other reasons like experience or education. 

Wage Range Transparency 

Employers in CT are required to disclose the salary range for a position to both applicants and current employees. The law defines “wage range” as the range of wages an employer anticipates relying on when setting wages for a position, and the disclosure must occur at the following times: 

For applicants 

• If a job applicant requests the wage range for a position they’re applying to, then the employer must provide it upon request or at the time the employer makes an offer of compensation, whichever comes first. The same applies to the benefits offered.   For current employees 
• The employer must provide the wage range for the employee’s position when: 
  • The employee is hired; or 
  • The employee’s position changes; or 
  • The employee makes their first request for the wage range.   
• The employer does not need to disclose what other employees earn, but only the wage range for the particular position.   

Salary History Ban 

• Employers can’t seek or use an applicant’s salary history to determine their pay. This ban helps prevent discrimination based on their past salaries, which could potentially perpetuate wage gaps.  
• The employer cannot ask the applicant about their wage or salary history (or direct a third party to ask) unless the applicant voluntarily disclosed it.   
• Employers can’t retaliate against applicants who refuse to provide their salary history.  

Freedom to Discuss Wages 

• Employers can’t retaliate against employees for sharing information and discussing their wages. 

Effective October 1, 2023, some updates were made to this law with additional requirements for employers: 

• Include a job’s wage or wage range and a general description of any applicable benefits, in its public and internal postings for jobs, promotions, transfers, or other employment opportunities. 
• Provide this information to employees on an annual basis. 
• Allow employees to freely discuss and share information about their wages. 

Again, Connecticut Wage Disclosure requirements apply to positions that will be performed within the state. It also applies to remote, out-of-state workers who still report to a supervisor, office, or other work site in the state.

Penalties for Noncompliance 

Compliance isn’t optional, and there are real consequences if you don’t follow the law. If your company fails to meet the requirements of the Connecticut pay transparency law, then the company could face liability. 

Here’s what HR teams need to know: 

• Employees or prospective employees may bring a civil action against the employer for violations within two years of the alleged violation. 
• Remedies may include compensatory damages, attorney fees and costs, punitive damages, and other legal and equitable relief as the court deems appropriate. 
• If an employer is found guilty, courts may award the employee or applicant compensatory damages, anywhere from $1,000 to $10,000. 

Bottom line is that there is risk. It’s not just reputational risk, but legal and financial issues as well. HR teams should treat this as a compliance priority. 

Best Practices for Pay Transparency and HR Teams 

Now that you have key details of the law, let’s talk about how you make this practical, work-friendly, and aligned with good HR practice.  

Here are some best practices: 

1. Review your job descriptions, offers, and recruiting templates 
   • Confirm that when someone asks for the wage range, your recruiting team is prepared to provide it promptly. 
   • In your job posting or recruiter materials (even if not legally required to include the wage range upfront), consider proactively including a range anyway because transparency builds candidate trust. 
   • Make sure that no part of your process asks applicants for salary history (unless voluntarily offered) in ways prohibited by the law. 
2. Define and document your wage ranges and pay grade structures 
   • Even though you might not have to publish every range publicly, you need to anticipate the range for each position (budgeted, actual, or comparable wages) so you can communicate it, when required. That definition is required by law.   
   • Keep the documentation on how you determined the range and how you update it, etc. This supports transparency, compliance, and equity. 
3. Train hiring managers and recruiters 
   • Make sure everyone knows the trigger points, such as applicant requests, offer time, hire time, position change, and employee request. 
   • Make sure they understand that refusing a request or failing to provide the wage range is not an option. 
   • Emphasize that pay “secrecy policies” prohibiting pay discussions among employees) are not allowed and disclosure is voluntary. 
4. Update your onboarding and internal communications 
   • When an employee starts, make sure that the wage range for their position is communicated.  
   • If their position changes (promotion, etc.), communicate the wage range disclosure again. 
   • Provide a clear mechanism (HR portal or formal request form) for employees to request their wage range. 
5.  Audit and monitor compliance 
   • Periodically review your job postings, offer letters, internal communications, and employee requests to ensure you’re consistent. 
   • Document your processes and responses so you have evidence of the disclosures, which helps mitigate risk. 
   • Review compensation decisions for equity. While the law is about disclosure, it links to issues of pay equity (based on gender, comparable work). Confirming you have fair structures supports transparency good faith. 
6. Communicate the value of transparency internally 
   • Frame transparency as not just a regulatory requirement, but as an opportunity to build trust, support fairness, and enhance your employer brand. 
   • Use this as a chance to reinforce your company’s commitment to equitable pay and open dialogue. That ultimately helps with retention, morale, and recruitment. 

What the Connecticut Pay Transparency Law Means for Your Organization 

The Connecticut Pay transparency Law is a clear example of a regulation that combines legal obligation with positive culture change. As you incorporate these requirements into your HR practices, you’re not just avoiding penalties. You’re helping to build and maintain a more equitable, transparent workplace. 

If your company would like help auditing your pay disclosure processes, updating your job offer templates and employee communications, or training your hiring managers on compliance and best practices, contact us today. We can work with your HR team to: 

• Review your current recruiting and compensation policies against the Connecticut law (and other state laws, if you’re a multi-state employer). 
• Refresh your documentation, workflows, and employee request processes. 
• Provide training and communication tools for your hiring managers and HR staff. 
• Support internal audits to keep you confident in your compliance posture. 

Contact OutSolve to see how we can help your company with the Connecticut pay transparency law.