Pay transparency laws in the U.S. are shifting quickly in 2025, with new rules rolling out throughout the year. Starting July 1, 2025, Vermont employers with five or more workers have to include salary ranges in every job posting.
Ohio, on the other hand, now requires detailed pay stubs under new legislation kicking in April. These changes are all part of a bigger move toward workplace transparency that’s shaking up how you hire, pay, and talk with your teams.
Pay transparency requirements just keep evolving as states roll out new rules at all kinds of times during the year.
These days, you can’t just assume everything changes in January anymore—many workplace laws now go live mid-year, so you’ve got to stay on top of deadlines all through 2025.
If you’re hiring, running pay audits, or updating pay policies, you’ll need to get familiar with these new rules.
Each state does things a bit differently, and missing the mark can mean fines or legal headaches that could really hurt your business.
Key Takeaways
- Several states rolled out new pay transparency laws in 2025, all with their own start dates and rules.
- Employers should create clear pay systems and check their current pay practices to stay compliant.
- These laws protect workers from retaliation and apply to both internal and external job postings.
Core Provisions and State-by-State Changes in Pay Transparency Laws 2025
States have passed new pay transparency requirements that roll out at different times in 2025, with Washington State bringing in big changes in July.
These rules require salary range disclosures in job ads and add new protections for folks asking about pay.
Latest State-Level Legislation and Effective Dates
Washington State employment law changes bring big updates to pay transparency starting July 27, 2025.
The state tweaked its wage and salary disclosure rules for job ads under SB 5408.
Key Changes Include:
- Five-day window to fix violations
- New rules on third-party job posting liability
- Updated damages for private lawsuits
- Correction period available until July 27, 2027
Vermont has updated its disclosure rules to match other progressive states.
Ohio’s new transparency laws also change how you run job ads.
Tennessee’s approach is a bit different, focusing on privacy while still promoting transparency.
These differences make things tricky for companies that hire in more than one state.
Key Requirements for Salary Range Disclosures in Job Postings
You’ll need to include salary ranges in job postings.
The details depend on the state, but you’ll usually need to list both a minimum and maximum pay.
Standard Requirements:
- Minimum salary or hourly pay
- Maximum salary or hourly pay
- Basic benefits info
- Bonus or commission details (if there are any)
Washington gives you five days to fix mistakes in your job ads before you get hit with penalties.
That’s not a lot of time, so you’ll want to double-check postings.
Some states only make you share pay info if an applicant asks.
Others want all the numbers up front.
It’s on you to know your state’s rules.
Protections for Job Applicants and Employees
These laws protect workers who ask about pay.
You can’t punish anyone for asking about salary ranges or compensation practices.
Protected Activities Include:
- Asking for salary range info
- Talking about pay with coworkers
- Reporting pay transparency violations
- Taking part in pay equity investigations
Workers can file complaints with state agencies or sue if you break the rules.
Washington’s new law even changes what damages employees can collect.
You have to give current and former employees access to their personnel files within 21 days if they ask.
That includes info on how you decided their pay.
International Developments: The EU Pay Transparency Directive
Poland’s pay transparency directive starts December 24, 2025.
This follows the EU’s broader push for pay transparency, which all member countries need to follow.
Finland’s draft bill would mean more pay disclosures to help close gender pay gaps.
It lines up with the EU’s rules on compensation transparency.
EU Directive Requirements:
- Pay range info in job ads
- Employees can ask for pay details
- Employers must report pay gaps regularly
- Protection from retaliation
These global changes might influence U.S. state laws, especially for companies with international teams.
If you work across borders, it’s worth keeping an eye on this.
Strategies for Pay Transparency Compliance and Fair Compensation
To do pay transparency right, you need to set up clear pay ranges, run regular pay audits, and have a plan for fixing problems.
These steps keep you compliant and help build trust with your team.
Establishing and Communicating Pay Ranges
Start by building clear pay ranges for your key jobs.
Focus on roles you’re hiring for soon, or where you’ve seen turnover or complaints.
Use trusted market data like Payscale to see where your pay stands.
This gives you a solid base for defensible pay decisions.
Key Elements of Effective Pay Ranges:
- Minimum: What you’d pay someone starting out
- Midpoint: The typical rate for someone who’s fully trained
- Maximum: The top end for standout performers
Be clear about how you set these numbers.
Let people know where they’ll likely start and how they can move up.
This helps avoid rushed or emotional pay decisions.
Train HR and managers to explain why new hires don’t always start at the top. Pay transparency isn’t about everyone making the same—it’s about everyone understanding the process.
Talk about pay regularly.
Bring up compensation during performance reviews, show employees where they fall in the range, and explain how they can grow.
It makes things less awkward and more predictable.
Conducting Pay Audits and Benchmarking Practices
Kick off with a focused pay audit for your top hiring needs.
You don’t have to check everything at once—just start with high-risk or high-profile roles.
List out what you pay people in these jobs.
Compare pay across teams and with outside data.
This helps you spot gaps and gives you a starting point.
Pay Audit Process:
- Pick key roles based on hiring plans and risk
- Collect current pay data for those jobs
- Compare pay internally across teams
- Check against market data
- Write down findings and your reasons
HR tech can make this easier.
Automated tools mean less manual work and more focus on what matters.
Look for trends.
Are there pay gaps by gender, department, or hire date? If you find unexplained differences, fix them quickly.
Check your pay structure often.
Markets shift, and your pay should keep up.
Try reviewing quarterly if you can.
Mitigating Compensation Risk and Ensuring Equity
Write down why you make each pay decision.
This keeps things consistent and gives you something to point to if questions come up.
Build a pay transparency plan that tackles pay equity before you’re forced to by new laws.
Don’t just scramble at the last minute.
Risk Mitigation Checklist:
- Update job ads with the right pay range info
- Train managers to have honest pay talks
- Work with legal and finance on compliance
- Listen to employee feedback
- Set up safe ways for people to raise pay concerns
Fix pay gaps as soon as you spot them.
Set a timeline and let people know what’s changing.
Encourage open conversations about pay.
Invite questions and give straightforward answers.
It’s better to address small issues early than let them grow.
Watch key numbers like turnover and satisfaction scores. People at transparent companies are 59% less likely to quit than those at secretive ones.
Offer whistleblower protections for pay complaints.
Employees should feel safe reporting issues.
Frequently Asked Questions
Pay transparency laws are shifting all over the country, with new federal guidance and state rules starting in 2025.
Knowing what’s required, how penalties work, and what you need to disclose will help you stay out of trouble.
What are the requirements for employers under the latest federal pay transparency legislation?
Federal pay transparency laws mostly focus on equal pay, not on making you post salaries.
The Equal Pay Act and other federal laws ban pay discrimination based on protected traits.
You need to pay people equally for equal work, no matter their gender, race, or other protected status.
If you’re a federal contractor, you’ve got extra rules under Executive Order 11246 and Section 503 of the Rehabilitation Act.
The EEOC enforces these federal laws.
Most of the rules about posting salaries or pay ranges, though, come from state and local governments.
How do state-level pay transparency laws vary across the United States as of 2025?
State pay transparency laws are all over the map.
Some states make you list salary ranges in job ads, while others focus on giving employees access to pay info.
New Jersey’s pay transparency law covers employers with 10 or more workers for at least 20 weeks.
If you post jobs in New Jersey, you have to follow these rules—even if your company is based elsewhere.
Penalties aren’t the same everywhere.
In New Jersey, you could pay up to $300 for a first violation and $600 for each one after that.
California, New York, and Washington have some of the strictest rules.
They all require salary ranges in job ads and give employees the right to see wage info.
In what ways must companies in Illinois comply with the state’s pay transparency law?
Illinois makes you share pay scale info with employees and job applicants if they ask.
You have to give wage and benefits details during the application process or before making a job offer.
This law covers employers with 15 or more workers.
You can’t ask about current or past pay or benefits when screening applicants.
You’re also not allowed to ask about salary history when hiring.
You have to provide pay scale info for promotions and internal jobs, too.
What are the legal obligations for employers in Minnesota concerning salary disclosure?
Minnesota says you need to include salary ranges in job ads.
You have to list the starting pay range for any job you post.
This rule applies to employers with 30 or more employees.
You also need to give current employees pay range info for their jobs if they ask.
You can’t ask about salary history during hiring in Minnesota, either.
No questions about past or current pay.
What updates have been made to Virginia’s pay transparency law in recent years?
Virginia hasn’t passed a law requiring salary info in job ads.
The state mostly focuses on equal pay and anti-discrimination.
You can’t ask about salary history when hiring in Virginia.
Screening applicants based on wage or benefits history is off-limits.
The law requires equal pay for similar work.
You have to provide equal compensation no matter someone’s gender, race, or other protected status.
How does Maryland’s pay transparency legislation affect job listings and employment practices?
Maryland hasn’t rolled out statewide pay transparency rules for job postings yet.
The state’s equal pay laws stick to wage equity and anti-discrimination.
In Maryland, employers can’t ask job applicants about their past salaries.
The law blocks wage history questions during hiring.
Employers in Maryland have to pay equally for similar work done in similar conditions.
It’s on you to make sure pay is fair across all protected groups.