Preparing for The Expansion of Pay Transparency Laws Across the U.S. in 2025
Last Updated on November 14, 2024
The push for greater pay transparency in the United States is gaining momentum. Over the past few years, many states and cities have implemented pay transparency laws, requiring employers to disclose salary ranges in job postings and provide pay information upon request to applicants and sometimes, employees.
As we approach a new year (2025), the movement toward pay transparency will accelerate, with five additional states set to introduce pay transparency laws. Here’s a closer look at what pay transparency laws mean for employers and employees, and what to expect as more states adopt these regulations in 2025.
The Rise of Pay Transparency Laws
Pay transparency laws are part of a broader national effort to tackle pay inequities, particularly the gender and racial wage gap. These laws are designed to level the playing field by giving employees more visibility into how their compensation compares to others in similar roles. In turn, employers are being held to higher standards of accountability, encouraging fairer pay practices.
Currently, several states and cities have already enacted pay transparency laws, with regulations varying in terms of scope, enforcement and penalties. However, 2025 marks a turning point, as five more states will join the growing list of jurisdictions requiring employers to disclose salary ranges and compensation information in certain situations.
Key Provisions of Pay Transparency Laws
While each state’s specific regulations may differ, the general framework of pay transparency laws includes several key provisions that employers need to be aware of:
1. Salary Range Disclosures: Many pay transparency laws require employers to include salary ranges in job advertisements, whether the job is posted internally or externally. This helps candidates make more informed decisions before applying, reducing the potential for wage discrimination based on negotiation skills or hidden biases.
2. Providing Pay Information on Request: In many jurisdictions, employees have the right to request information about the pay scale for their position or similar roles within the company. This transparency helps employees assess whether they are being fairly compensated and ensures that companies are not perpetuating pay disparities.
3. Ban on Asking About Salary History: Several states and cities have enacted laws that prohibit employers from asking candidates about their salary history. This measure is aimed at preventing the perpetuation of pay inequities from one job to the next, as past salaries may not reflect an individual’s true value for a given role.
4. Internal Pay Transparency: Some jurisdictions require companies to disclose salary information for specific job classifications within their organization, ensuring that compensation is equitable for employees in similar roles.
What to Expect in 2025: Five More States Adopting Pay Transparency Laws
In 2025, five additional states will adopt pay transparency laws, extending this critical push for pay equity to more regions across the country. These new laws will have a profound impact on businesses and workers alike, as they will enhance access to salary information and promote fairer compensation practices. Although the specifics of these laws will vary by state, employers can expect to see an increased focus on salary transparency in job postings, as well as additional requirements for providing pay data to candidates and employees.
Pay Transparency Laws by State as of 2024
| State | Salary Range Disclosures in Job Postings | Salary History Ban | Other Key Provisions |
| California | Yes, for employers with 15+ employees | Yes | Employers must provide pay scale to current employees upon request. |
| Colorado | Yes, for all employers | Yes | Employers must disclose pay ranges for job postings and provide this info on request. |
| New York City | Yes, for employers with 4+ employees | Yes | Employers must disclose salary ranges for all job postings. |
| Washington | Yes, for all employers | Yes | Employers must provide pay range info upon request. |
| Connecticut | Yes, for employers with 3+ employees | Yes | Employers must provide salary ranges upon request. |
| Maryland | Yes, for employers with 15+ employees | Yes | Employers must include salary ranges in job listings. |
| Nevada | Yes, for employers with 50+ employees | Yes | Requires pay range disclosure in job postings. |
| Oregon | Yes, for employers with 1+ employees | Yes | Requires employers to provide pay scale on request. |
| Illinois | Yes, for employers with 100+ employees (Chicago) | Yes | Chicago has a local law requiring pay range disclosures for job postings. |
| Rhode Island | Yes, for employers with 1+ employees | Yes | Employers must disclose salary ranges for all positions. |
| New Jersey | Yes, for employers with 4+ employees | Yes | Employers must disclose salary range on job postings or upon request. |
| Massachusetts | Yes, for employers with 1+ employees | Yes | Employers must provide pay scale on request and cannot ask about salary history. |
State Expected Implementation Provisions for 2025
| State | Expected Provisions |
| Michigan | Expected to require salary range disclosure in job postings. |
| Pennsylvania | Expected to ban salary history inquiries and require pay range disclosures. |
| Minnesota | Expected to mandate salary transparency for all job postings. |
| Florida | Expected to adopt a salary history ban and salary range disclosure requirements. |
| Virginia | Expected to expand existing pay transparency laws and include salary ranges in job ads |
Looking Ahead: The Future of Pay Transparency
The growing trend of pay transparency is likely to continue expanding in the coming years, with more states expected to introduce similar laws. For employers, the time to prepare is now. Adapting to pay transparency laws not only ensures compliance but also offers an opportunity to build a stronger, more equitable workplace culture. By prioritizing fair pay and transparency, companies can improve employee satisfaction, attract top talent and position themselves as leaders in the fight for pay equity.
In summary, as pay transparency laws continue to evolve across the United States—and as five more states introduce such laws in 2025—businesses must adapt to the changing landscape. MyHRConcierge can help ease pains when it comes to compliance, and can help assure that your organization stays up-to-date on changing laws and regulations. For more information, contact MyHRConcierge at ccooley@myhrconcierge.com, 855-538-6947 ext. 108, or, schedule a free consultation below: