Pay Transparency Laws: A State-by-State Guide for Employers

The growing interest in pay transparency is moving states to create or amend existing laws, requiring companies to disclose wage ranges in job advertisements. Sometimes, this requirement extends to the entire compensation package. Other states prioritize disclosures upon request and prohibit retaliation regarding wage discussions.

If your company operates in multiple states, it’s essential to understand which laws apply to you. Noncompliance can lead to substantial penalties, erode employee trust and damage your company’s reputation. Each state also has specific requirements regarding the disclosures. Some state laws include poster requirements, which a compliance partner, like Poster Compliance Center, can help with.

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In This Article

• What Are Pay Transparency Laws and Why Does Wage Transparency Matter?
• Is There a Federal Pay Transparency Law?
• Understanding the 3 Tiers of Pay Transparency Laws
• State-by-State Guide to Pay Transparency Laws
• Cities and Localities With Wage Transparency Laws
• Do These Laws Require a Pay Transparency Poster?

What Are Pay Transparency Laws and Why Does Wage Transparency Matter?

Pay transparency laws require companies to share compensation information with job candidates and current employees. Transparency supports the principle that employees should be paid equally for performing similar work, regardless of their gender, race, or other factors that have historically led to wage discrimination. These laws ensure that employees have equal access to advancement opportunities and prevent past pay disparities from affecting future earnings. 

Law proponents believe that increasing wage transparency during recruitment can reduce discrimination, promote fairer compensation practices and close the gender pay gap. When employers disclose pay scales, applicants can better manage their pay expectations, effectively negotiate salaries, and make more informed career decisions.

Is There a Federal Pay Transparency Law?

As of 2025, there is no federal pay transparency law. While the Pay Transparency Nondiscrimination Provision was previously established for federal contractors, this was rescinded by Executive Order 14173 on January 21, 2025. However, the National Labor Relations Act (NLRA) protects employees when discussing wages with co-workers and prohibits employers from retaliating. Other pay transparency laws are enforced at the state and local levels.

Understanding the 3 Tiers of Pay Transparency Laws

Pay transparency laws can be categorized into three types — job advertisement disclosures, disclosures upon request and a ban on asking about salary histories. Although some states with pay transparency laws include all three provisions, here’s how they differ:

Tier 1: Salary or Wage Range Disclosure in Job Postings

Requiring pay disclosures in job advertisements proactively helps applicants manage their expectations. Some states specify when and how you should post the wages or salaries. Other states include benefits, commissions and bonuses in the disclosure requirements.

If these laws apply to you as an employer, you must provide the wage or salary information to relevant parties and applicants. The requirement typically applies to all job ads, even those arranged by third parties. 

Tier 2: Pay Scale Disclosure Upon Request

Some states don’t explicitly require you to post salary and wage ranges on job ads. However, you need to provide the amount upon the request of an applicant or employee. This requirement is more reactive compared to the previous tier. It also typically applies to employees eligible for promotion or those switching positions within your company.

Tier 3: Pay Secrecy and Discussion Protections

Pay secrecy can contribute to pay disparities. Under the NLRA, you cannot prohibit employees from discussing their wages or retaliate against them for doing so with their colleagues. Other laws prohibit asking job applicants about their salary history during recruitment and using this information for your job offer. 

State-by-State Guide to Pay Transparency Laws

Multiple states have pay transparency laws. Some states have all three tiers, while others focus on one or two of them. Some states also have pay transparency law poster requirements. Here’s what you need to know for each state:

Tier 1 States: Mandatory Salary Ranges in Job Postings

States with mandatory wage and salary disclosures in job advertisements include:

• California: In California, employers with 15 or more employees must include the pay scale, whether hourly or salaried rates, in job advertisements. You should also keep records of employees’ job titles and rates throughout their employment and for three more years after termination. Noncompliance can lead to civil penalties of $100 to $10,000 per violation. The first violation can be waived, depending on your circumstances.
• Colorado: Colorado requires all public and private employers with at least one employee to display payment information in job advertisements. You should also notify employees of new opportunities, such as promotions or transfer opportunities. Fines can range from $500 to $10,000 per violation. 
• District of Columbia (D.C.): D.C. requires employers with at least one employee to display the minimum and maximum salary or hourly pay in all job posts. You should also inform applicants about potential health care benefits before their first interview. The law does not apply to the D.C. and federal government. Covered employers who violate the law can be fined from $1,000 to $20,000. D.C. also requires employers to display a notice about this law.
• Hawaii: Hawaii requires public and private employers with 50 or more employees to include hourly rates or salary ranges in job posts. 
• Illinois: Illinois’ pay transparency law requires private and public employers with 15 or more employees to include salary or hourly ranges in job advertisements, including a general description of the included benefits. You should also inform employees of promotion opportunities no later than 14 calendar days after you post about the position. Penalties can include payment for damages.
• Maine: Maine requires companies with 10 or more employees to disclose pay ranges in job postings, whether these are posted directly by the company or through third parties. These can be based on any applicable pay scale, a budgeted amount for the position, a previously determined range or the actual wages of current employees for the same position.
• Maryland: Maryland requires companies to provide the pay range or fixed rate, benefits and other forms of compensation in job advertisements. This is also required for promotion or transfer opportunities for your employees. Penalties can cost $300 to $1,000.
• Massachusetts: Massachusetts’ pay transparency law requires companies with 25 or more employees to include pay ranges in job ads, whether these are new jobs or for promotions and transfers. Noncompliance can lead to civil penalties.
• Minnesota: Minnesota’s pay transparency law requires public and private companies with 30 or more employees to post pay information in job ads. You should also include notices about the employee’s wage rights in their handbook. 
• New Jersey: New Jersey requires companies with 10 or more employees to provide pay ranges and benefits in job advertisements. The spread between the minimum and maximum pay should not exceed 60% of the minimum amount. You should also inform your current employees of the pay ranges for any promotion or transfer opportunities. Violations can cost from $300 to $600.
• New York: New York’s pay transparency law requires private companies with four or more employees to display the pay ranges in new, promotion or transfer job advertisements, whether directly posted by the company or through third parties. This requirement also applies to remote work positions, including those posted out of state. You must also disclose whether the position is entirely commission-based.
• Vermont: Vermont companies with five or more employees, where at least one employee works in the state, must display the pay range for job advertisements. If the position is commission-based, that must be clearly stated as well. However, you don’t need to disclose the range of compensation for commissions. 
• Washington: In Washington state, companies with 15 or more employees must display the pay range or fixed wage, benefits and other forms of compensation in job advertisements. Violations can cost $100 to $5,000. Companies can correct their job ads until July 27, 2027, before penalties apply.

Tier 2 States: Pay Scale Disclosure Upon Request

States that require companies to disclose pay information upon request include:

• Connecticut: In Connecticut, companies with one or more employees must disclose the wage range for the job if employees ask for it, when applicants get hired or when an employee’s position changes. Noncompliance can result in lawsuits and require payments for damages.
• Maine: Maine requires employers with 10 or more employees to disclose wage ranges when employees ask for them. 
• Nevada: In Nevada, employers and employment agencies are required to disclose the wage or salary expectations for the position for which job applicants and employees are applying. The same is required for promotion and transfer opportunities. Administrative penalties can cost up to $5,000 per violation.
• Rhode Island: Rhode Island requires employers to disclose pay ranges to applicants and employees if they ask for it and when switching positions. They must also post the required notice in a conspicuous place within the workplace. Violations can lead to civil penalties.

Tier 3 States: Pay Secrecy and Discussion Protections

Federal law prohibits employers from retaliating against employees for discussing wages. In some states, employers also cannot ask for an employee’s salary history. These states include:

• Illinois: In Illinois, companies with 15 or more employees cannot ask job applicants about their salary history and use such information for the job offer. They also cannot retaliate against employees for discussing wages. Salary history violations can cost between $500 and $10,000, depending on the company’s size and the number of occurrences.
• Maine: Maine prohibits companies from asking job applicants’ salary history until after a job offer is made and from retaliating against employees who discuss their wages. Violations can lead to payments for damages.
• New Jersey: In New Jersey, companies cannot use an applicant’s salary history as a reference for the job offer. They also cannot retaliate against employees for discussing wages. Penalties can cost $1,000 to $10,000 per violation.
• Vermont: Vermont prohibits companies from asking about an applicant’s pay history or retaliating against them for discussing their wages. 

Cities and Localities With Wage Transparency Laws

Several cities have also adopted wage transparency laws.

• Cincinnati, Ohio: Employers with 15 or more employees must provide the pay range for a job upon an applicant’s request after a conditional employment offer, and cannot ask an applicant for their salary history. Job applicants may sue for compensatory damages and legal fees for violations.
• Toledo, Ohio: Employers with 15 or more employees must not ask about an applicant’s salary history and cannot use this information as a reference for the job offer. They also cannot retaliate against applicants who don’t disclose their past pay. After a conditional offer of employment, employers should provide the pay scale for the given position if the applicant asks for it.
• Ithaca, New York: All employers with four or more employees must publish the salary range for each new job.
• Jersey City, New Jersey: All employers with five or more employees and with a principal place of business in Jersey City must post the salary range for every job posting. Violations are punishable by a fine of up to $2,000.
• New York City, New York: New York City employers with at least four employees must disclose salary ranges in job advertisements for jobs performed in the city. An initial violation will not incur a fine if it is remedied within 30 days. Unremedied and subsequent violations may lead to a penalty of up to $250,000.

Do These Laws Require a Pay Transparency Poster?

Pay transparency laws by state differ in requirements, and they don’t always require companies to display notices. However, the practices often go hand in hand with the principles and requirements in other mandatory posters, such as the:

• Employee Rights Under the Fair Labor Standards Act, or the FLSA poster.
• Employee Rights and Responsibilities Under the Family and Medical Leave Act, or the FMLA poster.
• Employee Rights for Workers with Disabilities Paid at Special Minimum Wages poster.

More states are considering adopting pay transparency laws, which can potentially come with poster requirements. For instance, Michigan has multiple proposals that would require employers with one or more employees to display salary information in job advertisements. Noncompliance could cost about $1,000 to $10,000 or more per violation. 

Displaying relevant notices protects your company and builds employee trust. You can partner with Poster Compliance Center to easily navigate the upcoming changes.

What Employers Should Do To Comply With Wage Transparency Laws

It can be tricky to keep track of the evolving changes in labor laws, especially if you operate in multiple states. While many states have adopted pay transparency laws, more are considering their implementation, which could impact your company’s compliance over time. What’s more, these regulations often come with hefty penalties that cost thousands of dollars. To avoid paying for damages and risking your company’s reputation, it’s better to take a proactive approach by working with a compliance partner.

Poster Compliance Center has been working with small businesses and corporations since 1991, making labor law compliance easier through a streamlined process. We inform you of the mandatory poster changes and send the updated posters as needed, so you can easily display the required notices while ensuring your employees are aware of their rights.

Opting for an annual state and federal compliance plan is the best way to avoid penalties. With remote teams, our digital compliance platform can also help. If you’re an enterprise with establishments in multiple locations, our corporate solutions can provide a personalized service. Request a custom quote today to get started.