As the movement for salary transparency gains traction across the United States, more states are implementing laws that require employers to disclose salary ranges and compensation details in job postings. These laws aim to create a more equitable workplace by ensuring that potential employees have access to critical information about pay before accepting job offers. As of 2024, several states—including California, Colorado, New York, and Illinois—have established regulations mandating that employers provide salary information during the hiring process or upon request. Each state has its own unique requirements regarding which employers must comply, how salary information should be presented, and what penalties may apply for non-compliance. This article will explore these states in detail, outlining their specific salary transparency laws and effective dates to help employers navigate this evolving landscape.
States with Salary Transparency Requirements
California
California’s pay transparency law requires employers with 15 or more employees to disclose salary ranges in all job postings. Effective January 1, 2023, this law mandates that employers provide pay scale information to applicants upon request and prohibits them from relying on an applicant’s salary history to determine compensation.
Colorado
Colorado’s law took effect on January 1, 2021, requiring all employers to include salary ranges in job postings. This law applies to all organizations with at least one employee in Colorado and emphasizes clear communication regarding compensation expectations.
Connecticut
Connecticut’s Public Act 21-30 requires employers to disclose pay ranges to applicants upon request or before making a job offer. This law has been effective since October 1, 2021, and applies to all employers statewide.
Hawaii
Effective January 1, 2024, Hawaii mandates that businesses with 50 or more employees disclose salary ranges in every job posting. Employers must ensure that the disclosed pay accurately reflects what they expect to pay for the position.
Illinois
Illinois’ new pay transparency law will take effect on January 1, 2025. Employers with 15 or more employees must include wage scales in job postings and provide a general description of benefits offered alongside compensation details.
Maryland
Maryland’s Wage Transparency Law requires employers to provide wage scale information upon request from applicants and employees. This law will become effective on October 1, 2024, and applies to all employers in the state.
Massachusetts
Starting July 31, 2025, Massachusetts will require employers with 25 or more employees to disclose salary ranges in job postings. This legislation aims to enhance pay equity by providing clear compensation information.
Nevada
Nevada’s pay transparency law requires all employers to disclose salary information for any role during interviews or when requested by current employees seeking promotions or transfers. This law has been effective since October 1, 2021.
New York
New York’s pay transparency law mandates that employers with four or more employees disclose salary ranges in job postings. This law took effect on September 17, 2023, and applies to new hires as well as internal promotions.
Rhode Island
Rhode Island requires employers to provide pay range information for job postings as part of its broader efforts toward pay equity. This law is designed to ensure transparency in compensation practices across various industries.
Washington
Washington’s law became effective on January 1, 2023. Employers with 15 or more employees must include salary ranges in all job postings and disclose pay for internal promotions upon request from employees.
Conclusion
The push for salary transparency is reshaping employment practices across the United States as more states adopt laws requiring disclosure of compensation information. Understanding these regulations is essential for both employers and employees as they navigate the complexities of hiring and compensation practices. By fostering transparency in pay structures, these laws aim to create a fairer workplace environment where individuals can make informed decisions about their careers