Pay Transparency Laws in the U.S.: What Employers Need to Know

Pay Transparency Laws in the U.S.: Key Takeaways

As of August 2025, multiple states require employers to disclose salary ranges in job postings to promote wage equity.
State requirements vary by employer size and details to be included, such as pay scale, benefits, and other compensation.
States like California, New York, and Washington have already implemented comprehensive pay transparency rules affecting many employers nationwide.

Pay transparency laws are expanding across the U.S., mandating employers to provide clear salary information in job advertisements.

Understanding these evolving requirements helps employers ensure compliance and fosters fairness for job seekers.

For example, learning job posting compliance tips can aid in navigating multi-state transparency rules.

1. Overview of Pay Transparency Laws in the U.S.

Recent years have seen a strong legislative push toward pay transparency in employment, aiming to close wage gaps and empower candidates with salary clarity.

By requiring employers to disclose compensation info in job ads, these laws seek to eliminate guesswork and promote equitable hiring.

However, compliance can be complex because states differ widely in which employers are affected and the exact compensation details that need to be disclosed.

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2. State-Specific Pay Transparency Requirements

California Pay Transparency Laws

Effective January 1, 2023, California requires employers with 15 or more employees to include pay scales in job postings.

Moreover, any employer must provide pay scale information upon an applicant’s request, enhancing transparency beyond just job ads.

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Colorado Pay Transparency Requirements

Colorado’s law, effective January 1, 2021, applies to all employers regardless of size.

Employers must disclose compensation ranges plus a general description of benefits in all job advertisements.

Hawaii and Illinois Pay Transparency Highlights

Hawaii’s law, effective January 1, 2024, requires employers with 50 or more employees to state an hourly rate or salary range that reflects expected compensation.

Illinois, coming into effect January 1, 2025, has similar requirements for employers with 15+ employees—requiring wage ranges and benefit descriptions in job postings.

Maryland, Massachusetts, and Minnesota Pay Transparency

Maryland’s law (effective October 1, 2024) covers all employers and mandates posting wage ranges, benefits, and other compensation.

Massachusetts requires employers with 25+ employees to include pay ranges in job postings and provide this info on request, effective October 29, 2025.

Minnesota’s law, effective January 1, 2025, applies to employers with 30+ employees, requiring a pay range or fixed rate plus benefits and other compensation descriptions.

New Jersey, New York, and Vermont Pay Transparency Rules

New Jersey’s law takes effect June 1, 2025, affecting employers with 10+ employees and mandates hourly wage or salary ranges, benefits, and other compensation to be disclosed.

New York’s law, effective September 17, 2023, requires employers with four or more employees to list salary ranges for all jobs that can be performed in New York.

Vermont, effective July 1, 2025, covers employers with five or more employees, requiring a specific salary or range or stating when a job is commission-only.

Washington Pay Transparency Requirements

Washington’s law, in force since January 1, 2023, applies to employers with 15 or more employees.

Employers must disclose wage scales or salary ranges plus a general description of benefits and other compensation in job advertisements.

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3. Compliance Tips for Employers in the Hospitality Industry

Employers operating in multiple states should carefully review the pay transparency requirements specific to each state to ensure compliance.

This is especially relevant for hospitality businesses with varying workforce sizes and locations.

Implement policies to update job postings with accurate pay ranges and benefit summaries reflecting actual compensation.

Ensure recruiters and hiring managers understand these laws to consistently provide salary info both in ads and when requested by applicants.

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Handling Company Size Thresholds

Many states apply pay transparency laws only to employers above certain employee counts (e.g., 15 employees in California, 25 in Massachusetts).

Track employee numbers carefully to determine when requirements kick in and phase compliance accordingly.

Maintaining Accurate Pay and Benefits Data

Keep job-specific salary ranges updated based on market and internal compensation structures.

Use standard language to describe common benefits and any additional compensation such as bonuses or tips for clarity in job postings.

For hospitality employers, maintaining clear salary structures helps in roles across the board, including positions like Server and Chef.

4. Impact of Pay Transparency Laws on Employers and Job Seekers

For job seekers, these laws offer greater clarity and fairness, allowing informed decisions and negotiations.

Employers benefit by attracting candidates aligned with the compensation offered, potentially reducing time-to-fill and improving candidate satisfaction.

However, employers may face challenges such as updating hiring processes, managing internal pay structures, and addressing pay inequities.

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5. Resources for Staying Compliant with Pay Transparency Laws

Pay Transparency Laws in the U.S.: Conclusion

The expanding landscape of pay transparency laws across the U.S. requires employers to provide clear pay and benefits information in job advertisements.

Staying abreast of state-specific rules and proactively updating hiring practices helps organizations comply with the law and support equitable employment practices.

For hospitality employers with multi-state operations, diligent compliance promotes trust with job seekers and alignment with evolving workforce expectations.

Using insights from employer branding in restaurant job postings further enhances attraction and retention of talent in a transparent pay environment.

01. What are pay transparency laws?

Pay transparency laws require employers to disclose salary ranges and other compensation details in job advertisements, promoting wage equity and informed decision-making.

02. Which states have implemented pay transparency laws?

States including California, New York, Washington, Colorado, Massachusetts, and others have enacted pay transparency laws with varying requirements based on employer size.

03. Who do pay transparency laws apply to?

These laws typically apply to employers over certain employee thresholds, which vary by state, such as 15 employees in California or 25 in Massachusetts.

04. How can employers comply with these laws?

Employers should regularly update job postings with accurate pay ranges and benefits information and train hiring staff about legal requirements.

05. What are the benefits of pay transparency laws?

These laws help reduce wage disparities, improve hiring fairness, and increase transparency for job seekers and employers alike.