Salary Transparency Laws by State: 2025 HR Compliance Guide

In 2025, pay transparency continues to be a major focus for HR professionals. While discussions around workplace equity are gaining momentum, gaps between employer intent and employee perception remain significant.

According to Salary.com’s latest Pay Practices Survey, 77% of organizations believe they pay employees fairly—but many employees disagree.

New pay transparency laws are expanding in 2025, with Illinois and Minnesota implementing new rules effective January 1. While some states are doing the same, others have yet to take action.

This article explains the latest salary transparency laws by state to help HR implement transparent pay practices and stay compliant.

What are salary transparency laws?

Salary transparency laws refer to rules that require employers to share compensation information with job candidates. The goal is to promote fairness and reduce pay gaps based on gender, race, or ethnicity.

These laws may require employers to provide specific pay-related details, such as:

• salary ranges in job description or ads,

• sharing pay details during hiring,

• or including information about benefits and other types of pay.

As of this writing, there is no federal law that mandates salary transparency across employers in the United States. However, some states have passed their own laws to help make pay more fair, open, and equal.

For example, Illinois and Minnesota recently passed laws that will require employers to include pay ranges and basic benefit details in job listings starting January 1, 2025.

Being in a state with salary transparency laws and not following them can lead to legal issues. Make sure to stay informed and compliant.

Encourage your company to support salary transparency with Salary.com's Pay Equity tool. It helps you achieve and maintain transparent compensation with a complete solution for addressing gender pay gaps, pay raises, and overall pay fairness.

Why every HR needs to know about salary transparency laws

Following salary transparency laws, especially in states that require them, can bring many benefits to companies. These laws help to:

1. Make sure the company follows the law

   Not following salary transparency laws can lead to legal trouble, including fines worth thousands of dollars. In states like New York and California, employers are required to provide salary ranges or hourly wage rates in job postings. Some places allow time to correct the mistake before issuing penalties.

2. Attract more prospective employees

   Job seekers are more likely to apply for jobs that show the salary range. Studies show that over 80% of U.S. workers are more likely to apply if the pay range is listed. This transparency helps attract job candidates who fit the role and the company's pay structure.

3. Promote fairness and equality

   Salary transparency helps reduce unfair pay differences, especially those based on gender and race. Studies show women and people of color often earn less for the same work. Showing pay ranges makes it easier for companies to spot and fix these gaps, which can also improve employee productivity.

   Achieving and embracing pay transparency in your organization helps ensure fairness and identify pay inequities. The Pay Equity tool’s HRIS integration automatically syncs your internal data—such as jobs, employees, and salaries—for deeper analysis.

4. Improve hiring and keeping employees

   Clear and open pay builds trust between employers and workers. Research shows that pay transparency can lower the chance of employees wanting to quit by 30%. When workers feel their pay is fair, they are more likely to stay, which cuts down on hiring and training costs.

Salary transparency laws by state: 2025

To support fair, competitive pay and follow the law, employers should know each state’s rules on salary transparency. These rules are different across the U.S.—some states require pay ranges in job ads, while others ask for pay details during hiring.

Here are some new states that have implemented salary transparency laws, as of 2025.

• Illinois (effective January 1, 2025)

  Illinois' Pay Transparency Law requires employers with 15 or more workers to include pay and benefit details in all job postings. It helps job seekers see what they can expect to earn. Employers must also inform current employees seeking new opportunities within the company about open positions so they can apply if interested.

• Minnesota (effective January 1, 2025)

  Minnesota's new salary transparency law requires employers with 30 or more workers to include the starting pay scales, basic benefits, and other compensation data in all job postings. This applies to both printed and online ads, including those shared by third-party recruiters like search firms.

• New Jersey (effective June 1, 2025)

  New Jersey's Transparency Law requires employers with 10 or more employees to include pay ranges, benefits, and other compensation in job ads. They also need to tell current workers about promotion opportunities.

  Employers who do not follow the law may be fined up to $300 for the first time and $600 for each time after. To avoid penalties, train managers on compliance and pay transparency.

• Vermont (effective July 31, 2025)

  Vermont's Act 155 requires employers with five or more employees to include pay or pay range in job ads for roles based in Vermont or remote jobs tied to a Vermont office. This applies to internal and external job postings. Only written job ads are covered—not general or verbal announcements.

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• Massachusetts (effective October 29, 2025)

  Massachusetts's Act Relative to Salary Range Transparency requires employers with 25 or more workers to share pay ranges in job ads, with applicants, and with current employees who ask.

Pay range details must also be given during promotions, transfers, or when starting a new role. Employers cannot retaliate against anyone who asks for this information.

The following states have current salary transparency legislation:

• California (effective January 1, 2023)

• Colorado (effective January 1, 2021)

• Connecticut (effective October 1, 2021)

• District of Columbia (effective June 30, 2024)

• Hawaii (effective January 1, 2024)

• Maryland (effective October 1, 2020)

• Nevada (effective October 1, 2021)

• New York (effective September 17, 2023)

• Rhode Island (effective January 1, 2023)

• Washington (effective January 1, 2023)

If your organization operates in these states, staying compliant is important to avoid legal issues. Salary.com’s tool supports regression and cohort analyses to help uncover potential pay disparities among employees in similar roles.

States that have no salary transparency law

The following states have not enacted statewide salary transparency laws (as of 2025):

• Alabama

• Alaska

• Arizona

• Arkansas

• Delaware

• Florida

• Georgia

• Idaho

• Indiana

• Iowa

• Kansas

• Kentucky

• Louisiana

• Maine

• Michigan

• Mississippi

• Missouri

• Montana

• Nebraska

• New Hampshire

• New Mexico

• North Carolina

• North Dakota

• Ohio

• Oklahoma

• Pennsylvania

• South Carolina

• South Dakota

• Tennessee

• Texas

• Utah

• West Virginia

• Wisconsin

• Wyoming

States that have salary history bans

HR also needs to know about pay history bans in certain states, as this can affect the hiring process and impact compensation decisions. These bans stop employers from asking applicants about their past pay. Here are some states with these bans:

• Alabama

• California

• Colorado

• Connecticut

• Delaware

• District of Columbia

• Georgia (Atlanta)

• Hawaii

• Illinois

• Kentucky (Louisville)

• Louisiana (New Orleans)

• Maine

• Maryland

• Massachusetts

• Michigan

• Minnesota

• Mississippi

• Missouri

• Nevada

• New Jersey

• New York

• North Carolina

• Ohio

• Oregon

• Pennsylvania

• Rhode Island

• South Carolina

• Utah

• Vermont

• Virginia

• Washington

• Wisconsin

FAQs

Here are some common questions about salary transparency laws in the US:

Can an employer say a salary is confidential?

No, employers can't legally require employees to keep their salary confidential in many areas. Laws like the National Labor Relations Act protect employees' right to discuss wages and working conditions, even without a union.

Some states also have salary transparency laws that require employers to share pay ranges in job postings and provide pay details to employees upon request, supporting open wage discussions and transparency in compensation programs.

How many states have passed pay transparency laws?

As of 2025, a total of 14 states and Washington, D.C. have enacted pay transparency laws, which require private employers to disclose salary information in job postings or upon request.

Do companies have to share salary ranges?

Yes, companies have to disclose salary ranges, particularly in states with salary transparency laws. For example, in Rhode Island, employers with at least one employee must share salary ranges if asked, before talking pay with applicants, and when current employees are hired or during internal job transfers.

Communicating and implementing pay transparency is key to building trust and supporting fairness. Pay transparency policies, along with the Pay Equity tool, helps HR share a clear message about pay and show the company’s commitment to equal and fair compensation.