Pay transparency laws are one of the fastest-moving areas of employment law in the United States. In the past three years more than a dozen states and cities have enacted laws requiring employers to disclose salary ranges in job postings, during the hiring process, or upon employee request. Employers who fail to comply face civil penalties, regulatory investigations, and in some states private lawsuits from applicants and employees.
If you are posting jobs in any of the states or cities with pay transparency requirements — including remote positions that can be filled by residents of those locations — you may already be subject to these laws without realizing it.
What Pay Transparency Laws Require
Pay transparency laws generally fall into three categories depending on the jurisdiction:
Salary range disclosure in job postings. The most common requirement. Employers must include a good faith salary range — a minimum and maximum — in every job posting. Posting a single salary figure or a vague range like “$50,000 and up” typically does not satisfy this requirement.
Disclosure upon request. Some states require employers to provide salary range information to applicants upon request or at a certain stage of the hiring process, even if the range does not need to appear in the job posting itself.
Disclosure to current employees. Several states require employers to provide salary range information to current employees upon request or when they are offered a promotion or transfer to a new position.
States and Cities With Active Pay Transparency Requirements
California requires employers with 15 or more employees to include pay scales in job postings. Employers must also provide pay scale information to current employees upon request and to applicants upon request after an initial interview.
Colorado requires all employers with at least one employee in Colorado to include compensation ranges and a general description of benefits in job postings. This applies to remote positions that could be performed by a Colorado resident.
New York State requires employers with four or more employees to include a salary range and job description in job postings. The range must be a good faith estimate of what the employer reasonably expects to pay.
New York City has its own pay transparency law requiring employers with four or more employees to include salary ranges in job postings for positions that can be performed in New York City.
Washington State requires employers with 15 or more employees to include wage scale or salary range and a general description of benefits in job postings.
Illinois requires employers with 15 or more employees to include pay scale and benefits information in job postings as of 2025.
Massachusetts requires employers with 25 or more employees to disclose pay range in job postings effective 2025.
Connecticut, Maryland, Nevada, and Rhode Island require salary range disclosure to applicants upon request or at certain stages of the hiring process.
Jersey City, NJ, Ithaca, NY, Cincinnati, OH, and Toledo, OH have local pay transparency ordinances that may apply to employers operating within those cities.
The Remote Work Complication
Pay transparency laws create a particular compliance challenge for employers who post remote positions. Several states — most notably Colorado and New York — take the position that their pay transparency requirements apply to any job posting for a position that could be performed remotely by a resident of their state.
This means if you post a fully remote position on a national job board you may be subject to the pay transparency requirements of every state where a potential applicant could be located — even if you have no physical presence in that state.
The practical consequence is that many employers choose to include salary ranges in all job postings regardless of location to avoid the complexity of tracking which postings are subject to which state laws.
What Qualifies as a Good Faith Salary Range
Simply posting a range is not enough in most jurisdictions — the range must be made in good faith. A range of $30,000 to $300,000 for a mid-level marketing position would likely not satisfy the good faith requirement because it provides no meaningful information to applicants.
A good faith range reflects what the employer actually expects to pay for the position based on factors such as the candidate’s experience, skills, education, and the internal pay structure for similar roles.
Courts and regulatory agencies are beginning to scrutinize ranges that are implausibly wide as potential violations of the good faith requirement.
Benefits Disclosure Requirements
Several states including Colorado, Washington, and Illinois require employers to disclose not just salary ranges but also general descriptions of benefits available for the position. This typically includes health insurance, retirement plans, paid time off, and other significant benefits.
The level of detail required varies by state. Most do not require a complete benefits summary in the posting — a general description identifying the types of benefits available is typically sufficient.
Pay Transparency Compliance Checklist
- Identify all states and cities where your company has employees or where remote positions could be filled
- Determine which pay transparency laws apply to your company based on employee count thresholds
- Establish a process for determining good faith salary ranges before posting any position
- Include salary ranges in all job postings for covered jurisdictions
- Include benefits descriptions where required by state law
- Train hiring managers and recruiters on pay transparency requirements
- Establish a process for providing salary range information to current employees upon request
- Review all existing job posting templates to ensure compliance
- Consider adopting a universal pay transparency policy for all postings regardless of location
Penalties for Non-Compliance
Penalties for pay transparency violations vary by jurisdiction but can be significant. Colorado imposes civil penalties of $500 to $10,000 per violation. New York City imposes penalties of up to $250,000 for repeat violations. California allows applicants and employees to file civil lawsuits in addition to regulatory complaints.
Regulatory agencies in several states have begun actively investigating pay transparency complaints and issuing penalty assessments against employers who fail to include required salary information in job postings.
Key Takeaways
Pay transparency laws now require salary range disclosure in job postings in California, Colorado, New York, Washington, Illinois, Massachusetts, and several other states and cities. Remote job postings may be subject to the requirements of any state where the position could be filled. Salary ranges must reflect a good faith estimate of actual compensation — implausibly wide ranges do not satisfy compliance requirements. Several states also require benefits disclosure and salary range information for current employees upon request.
Recommended Resource: Ensure your job postings meet pay transparency requirements with the Ultimate Guide to HR Checklists Edition by Thalheimer & Simikian — covers compliant hiring practices and compensation disclosure requirements.
Recommended Resource: Stay compliant with evolving pay transparency laws using professional reference guides from National Underwriter — trusted by HR professionals and employment attorneys for regulatory guidance.
Disclaimer: The information on WorkplaceLogic.com is for general informational purposes only and does not constitute legal advice. Employment laws vary by jurisdiction and change frequently. Always consult a qualified employment attorney for advice specific to your situation.
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