A Guide to State and Local Pay Transparency Laws [2025]

Summary

• Pay transparency laws help promote pay equity and transparency by requiring employers to disclose information, such as wage information and benefits, in job postings.
• There is no federal law on pay transparency, but several states have implemented their own regulations.
• Payroll software can help standardize pay rates and ensure compliance, especially for businesses operating across state lines.

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To bridge the pay equity gap, several states and localities in the United States have enacted pay transparency laws. These laws have helped promote openness around hiring processes and compensation, but they’ve also introduced challenges for HR and payroll teams.

What does pay transparency mean?

Pay transparency refers to the practice of disclosing compensation-related information to employees, job applicants, or the public. This can include salary ranges, benefits, wage changes due to promotions, or pay by role or department. The level of disclosure depends on local or state laws. Some jurisdictions require proactive disclosures, while others only mandate sharing this information upon request. Certain regulations also specify whether disclosures must be made internally, externally, or both.

The goal of pay transparency is to ensure employees are paid fairly and to help them assess whether their compensation aligns with their role. When implemented effectively, pay transparency can support talent attraction and retention, enhance employee morale, strengthen employer branding, promote pay equity, and mitigate wage discrimination or unfair labor practices.

However, transparency also puts the responsibility on employers to manage how employees respond, especially when they discover they’re earning at the lower end of a wage range. It also adds compliance complexity, particularly for multi-location businesses navigating a patchwork of state and local laws.

Is there a federal law on pay transparency?

At the federal level, there are currently no federal laws requiring businesses to disclose pay information. In the absence of nationwide regulations, some states have introduced their own pay transparency laws, requiring organizations operating within their borders to meet specific disclosure requirements.

Which states have pay transparency laws?

Currently, 14 states, including D.C., have implemented pay transparency laws at the state level. While Ohio doesn’t have a statewide policy, some of its local jurisdictions have adopted their own rules.Here’s a running list of states and localities with pay transparency laws in place:

California

• Employers with 15 or more employees must include the pay scale for a position in any job postings, including third-party organizations that are posting job ads on their behalf. 
• Upon request, employers must provide the pay scale to an employee for the position that they are currently employed.
• Employers must maintain records on the job title and wage history of each employee for the duration of their employment plus three years after they’re no longer with the company. Records should be open to inspection by the Labor Commissioner. 
• Employers with 100 or more employees are required to submit an annual report on pay data, which is due every year in May. 

Colorado

Under Colorado’s Equal Pay for Equal Work Act, pay transparency rules require employers with at least one employee in the state to: 

• Disclose pay and other information in job postings and notices, internally and publicly:
  • Compensation, benefits information, how and when to apply
  • The rate of pay or a range of offered rates (hourly, salary, piece rate)
  • General description of any other compensation (e.g. bonuses, commissions, or tips)
• Disclose available job opportunities to all employees and also disclose who was selected.
• Disclose how to advance through career progressions to eligible employees.
• Keep records of wages and job descriptions.

Connecticut

• Employers must include the pay range (salary or hourly rate) and a description of benefits to external job ads, internal job postings (promotions or transfers), and remote jobs if an employee would report to someone in Connecticut.
• Disclosure should be upfront and proactive.

District of Columbia

• Employers with one or more employees in D.C. must provide the minimum and maximum projected salary or hourly pay in all job listings.
• Employers must disclose healthcare benefits before the first interview.
• Employers must post a notice about employee rights under this law in a visible, shared space at work. 

Hawaii

• Employers with 50 or more employees must include the hourly rate or salary range in job listings.
• However, the law does not specify the location of the 50 or more employees nor the type of their employment.
• Unlike other states, Hawaii does not require employers to disclose pay information on internal transfers and promotions. 

Illinois

• Employers with 15 or more employees (full-time or part-time) must include a pay range and a description of benefits.
• Employers must inform current employees of job openings.
• If an employer posts a job posting publicly, they are also required to inform all current employees of the job opportunity within 14 days. 

Maryland

• Internal and external job postings should include the pay range, a general description of benefits, and other compensation details offered (e.g., overtime, tips, commissions, bonuses, etc.).

Massachusetts

• Employers with 25 or more employees must disclose the pay range in the job posting for any position.
• Employees and job applicants have the legal right to know the pay range for a job when they apply, get promoted, transfer, or start a new position with an employer that has 25 or more employees. 
• Current employees can also ask for the pay range for their current position. 

Minnesota

• Employers with 30 or more employees are required to disclose the pay range for each job posting.
• Employers must also provide a general description of benefits and other compensation (e.g. health or retirement benefits).
• If the employer can’t provide a salary range, they must list a fixed rate.

Nevada

• Employers must disclose the wage or salary range for a position to applicants after an interview. 
• Employers must also disclose the wage and salary range for current employees who are seeking a promotion or transfer.

New Jersey

• Employers with 10 or more employees over 20 calendar weeks must disclose the hourly wage, salary, or pay range in external job postings, internal promotions, or transfer opportunities. They must also provide a description of benefits an employee can expect to receive in the first 12 months.
• Jersey City: Local rules in Jersey City require employers with five or more employees to disclose the minimum and maximum base salary or hourly wage, as well as the job benefits being offered. 

New York

New York has statewide rules and local regulations in place.

In New York state, employers with 4 or more employees are required to: 

• Disclose pay ranges for all jobs, promotions, and transfer opportunities. 
• Disclose compensation basis (e.g. completely commission-based work).
• Include a job description, except when the job title itself is self-explanatory.

New York City, Ithaca, Albany, and Westchester County have their own pay transparency rules. Their regulations are similar and aligned with state requirements but may have differences in who can file a complaint to the state’s department of labor and the penalties involved. For instance, New York City allows employers a 30-day window to correct their pay information once they receive a notice of violation. The state law doesn’t have this provision.

Rhode Island

Employers are required to disclose the pay range when someone is hired, when an employee moves to a new job within the company, or when an employee requests it.

Vermont (Effective Date: July 1, 2025)

• Businesses with 5 or more employees, with at least one working in Vermont, must include a minimum and maximum salary range in all job ads, including internal and external postings, promotion opportunities, and transfers. 
• Employers must clearly state if jobs are commission-based. 
• Employers must specify a base wage for tipped positions.

Washington

• Employers with 15 or more employees must include the salary range, general description of all benefits, and other compensation offered in their job postings.
• Employers must provide the salary range for new positions to employees who are offered a transfer or promotion. 

Ohio

Ohio does not currently have a statewide pay transparency law. However, some local rules are currently in effect. 

• Cincinnati and Toledo: Employers with 15 or more employees must disclose the salary range upon request after the first interview.
• Cleveland: Employers with 15 or more employees must include the salary range in job postings. (Effective date: October 27, 2025)

How can businesses adapt to pay transparency laws? 

Pay transparency is gaining momentum, and more states and localities are expected to enact rules in the near future. While these laws aim to close wage gaps, they can present challenges, especially for businesses operating across multiple jurisdictions.

Pay transparency laws often trigger company-wide policy changes. While HR usually leads these updates, payroll teams play a crucial role in ensuring that publicly disclosed pay ranges align with actual employee compensation.

Here are some practical tips to help payroll teams prepare and comply with current wage transparency rules and stay ahead of new laws:

Standardize pay rates across job sites and states

Consistent pay structures are crucial for compliance, particularly when hiring across multiple locations. Job titles and pay ranges should be clearly defined and aligned to meet local disclosure requirements. Inconsistencies can result in compliance risks and employee mistrust.

Post accurate and realistic pay ranges

Job postings must reflect actual compensation, not placeholders. Pay ranges should be based on current pay data and reflect what job candidates can realistically expect to earn. Ranges like “$50,000–$100,000” can signal noncompliance or raise red flags with regulators.

Evaluate internal pay equity across similar roles

Regular pay equity audits can help identify whether employees in similar roles are being paid fairly and equitably. If differences or disparities exist, document whether they are justified by performance, tenure, or other legitimate factors. Transparency laws make it critical to catch and address any unexplained gaps.

Keep organized payroll records

Accurate, centralized payroll records are essential. You’ll need clear documentation connecting job titles, hours worked, and pay rates, especially if employees or regulators request it.

Upgrade your systems to support compliance

Manual processes and outdated tools make compliance more difficult and prone to error. Upgrade your existing systems to centralize all your data and make it easy to track pay rates, monitor pay equity, and stay ahead of legal requirements. 

How Workforce.com helps with pay transparency compliance

Workforce.com combines payroll, time tracking, and scheduling into a single system. You can assign pay rates by role and location, ensure job postings reflect current compensation, and quickly identify any gaps and inconsistencies. With centralized records and reporting, it’s easier to comply with transparency requirements and to build a more consistent payroll process overall.

Discover how Workforce.com can help simplify payroll and compliance with pay transparency rules. Book a demo today.

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This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, labor laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to comply with the most current standards.