4 min read
Ultimate Guide to Pay Transparency Laws by State
Neil Dickinson
:
Aug 27, 2025 9:15:00 AM
Pay transparency laws are on the rise in the United States. Colorado led the charge on this initiative by implementing the first pay transparency state law in 2019 and many other states have followed since. While pay and salary was once considered a topic no one discussed, it is now gaining traction and requiring employers to be upfront and honest in job listings when it comes to disclosing salary ranges and benefits.
Both employers and employees are impacted by these laws. Employers who are in a state that has a pay transparency law must ensure all job postings, both internal and external, include the necessary information required by their state. Job seekers benefit from these laws because they can now view the salary range of a job before even applying. This can lead to better salary expectations and strong negotiating power from the employees since they know how high the salary range can go.
Overall, pay transparency laws lead to increased trust between both parties, improved morale, and a better reputation for employers.
What is Pay Transparency?
Let’s start with the basics. What are pay transparency laws? These laws require employers to disclose salary information to both external job seekers and internal employees. The goal of these laws is to foster transparency and create fairness and equitableness throughout your organization. Some typical things that need to be included in job postings for states that have pay transparency laws are:
- Job Pay or Salary: The requirements for this can vary by state. Often, they require employers to post a pay range in their job description so job seekers can see the minimum and maximum salary for the position. Other states only require the salary disclosure after the first round of interviews.
- Total Compensation and Benefits: Some states require employers to also include things like benefits, commission potential, bonuses, and more in job listings so job seekers can get a holistic view of the total compensation package with both the salary range and benefits included.
Pay transparency laws help to promote a fair and balanced workplace through pay equity and closing wage gaps. These laws are beneficial to both employees and employers alike. If you are a multi-state employer, download our State Pay Transparency Law Guide today to stay on top of regulatory requirements.
Pay Transparency Laws by State
As of August 2025, the following states have pay transparency laws:
| State | Who it Effects | Requirements | Law Status |
| California | Employers with 15 or more employees based in California or employers based in other states but have 1 or more employees working in California |
|
In Effect |
| Colorado | Employers with operations in Colorado or have employees working in the state |
|
In Effect |
| Connecticut | Employers with 1 or more employee |
|
In Effect |
| Hawaii | Employers with 50 or more employees |
|
In Effect |
| Illinois | Employers with 15 or more employees who are at least in part in Illinois or if the hired employee will report to a supervisor, office, or other worksite in Illinois |
|
In Effect |
| Maryland | All public and private employers in Maryland |
|
In Effect |
| Massachusetts | Employers with 25 or more employees |
|
Goes Into Effect: October 29, 2025 |
| Minnesota | Employers with at least 30 employees or more at one or more sites |
|
In Effect |
| Nevada | All employers |
|
In Effect |
| New Jersey | Employers with at least 10 employees over 20 calendar weeks |
|
In Effect |
| New York | Employers with 4 or more employees |
|
In Effect |
| Rhode Island | All state employers |
|
In Effect |
| Vermont | Employers with at least 5 employees whose office is physically located in Vermont or have remote roles tied to a Vermont based office |
|
In Effect |
| Washington | Employers with 15 or more employees |
|
In Effect |
| Washington, D.C. | All employers |
|
In Effect |
Best Practices for Employers
If you live in a state with a pay transparency law, you should be following all components of that law to reduce risk. If companies do not follow pay transparency laws, they are subject to significant financial penalties.
If you live in a state without a pay transparency law but want to start being proactive with your salary transparency, here are a few things you can start doing:
- Conduct a pay equity audit to see if you have wage gaps and address those gaps
- Implement a pay philosophy and salary structure that is fair for all employees
- Include salary range and benefits information in your job postings
What State Pay Transparency Laws Mean for your Organization
Employers have a lot to juggle when it comes to pay transparency. Ensuring you stay compliant should be your top priority to mitigate risk and provide a transparent work environment for employees.
OutSolve has expertise in consulting on state pay transparency laws, state pay reporting and pay equity audits. If you have a question about what you should be doing or would like assistance in conducting an audit or creating a compensation structure, reach out to us today.
Neil brings over 20 years of experience working with HR, Talent Acquisition, and Compensation teams across the country to build best-in-class compliance programs. Neil has worked directly with the OFCCP on hundreds of successful AAP Pay Equity Audits, supported clients in EEOC equal pay charges, and has also designed Pay Equity Analytics to provide federal contractors better visibility to pay gaps within their organizations. Neil regularly delivers training on Pay Equity and other compliance topics for SHRM, ILG, and other industry HR group events. Neil received his undergraduate degree from the University of South Carolina and The University of Hull in England and his MBA from The Citadel.
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