By Christina Santillo, SHRM-CP, Senior Human Resources Consultant
In recent years, transparency around salary in job postings has become a hot topic. Some states now require employers to include salary ranges in job advertisements, and this trend is likely to expand across the U.S.
Pay transparency laws generally require that employers disclose the compensation rate or range for a position in the job posting, at some point during the pre-employment process such as after making an offer of employment, or on an applicant’s request. These requirements typically apply to external job postings but can extend to internal transfers and promotions. Employers hiring for remote positions should note that pay disclosure requirements can also apply to remote positions and out-of-state employers.
As organizations prepare for potential legislation and shifting employee expectations, it’s essential to understand the current requirements and how to adapt.
States Where Salary Posting Is Required
As of now, the following states and jurisdictions have laws mandating salary range disclosure in job postings under specific conditions:
-
California
-
Colorado
-
Connecticut
-
Washington DC
-
Hawaii
-
Illinois
-
Maryland
-
Massachusetts (effective October 29, 2025)
-
Minnesota
-
Nevada
-
New Jersey (effective June 1, 2025)
-
New York
-
Rhode Island
-
Vermont (effective July 1, 2025)
-
Washington
Some cities have additional salary transparency requirements, such as Cincinnati and Toledo, Ohio; New York City and Ithaca, NY; and Jersey City, NJ.
Why This Trend Is Growing
The push for salary transparency stems from efforts to promote pay equity and reduce wage gaps based on gender, race, or other factors. Employees and job seekers are increasingly valuing transparency as part of the hiring process.
Preparing Your Business
Even if your state does not currently require salary range disclosure, it’s wise to prepare for the likelihood of similar laws in the future. Here are steps you can take:
-
Evaluate Current Pay Practices:
Review your existing pay structures and ensure that your salary ranges are competitive and equitable. Address any discrepancies that could raise concerns about pay equity. -
Document Pay Scales:
Establish clear salary ranges for every role in your organization. Consider factors like job responsibilities, industry benchmarks, and geographic location when determining ranges. -
Train Your Hiring Teams:
Ensure managers and recruiters understand your organization’s pay policies and are ready to answer questions from candidates about salary. -
Review Compliance Requirements:
Stay updated on pay transparency laws in your state or city. If your organization operates in multiple locations, consider adopting a standardized policy that meets or exceeds the strictest requirements. -
Be Strategic in Job Postings:
When listing salary ranges, provide realistic and honest ranges that reflect what you’re willing to offer. Overly broad ranges can discourage candidates or lead to dissatisfaction later in the hiring process.
Benefits of Salary Transparency
-
Attracting the Right Candidates: Candidates are more likely to apply when they know the salary range aligns with their expectations.
-
Building Trust: Transparency demonstrates fairness and builds a positive employer reputation.
-
Avoiding Legal Risks: Complying with salary disclosure laws reduces the risk of fines or lawsuits.
As the conversation around pay equity evolves, preparing for salary disclosure requirements is not just a legal necessity but also a strategic advantage.
For more information about pay transparency laws and how they affect your business, contact us at 855-873-0374 or email .
Disclaimer: The information provided on this website is for informational purposes only and not for the purpose of providing legal advice. Use of and access to this website does not create an attorney-client relationship between Keystone’s Risk Management Division or our employment attorney and the user or browser.
