Pay transparency laws keep popping up across the United States, and 2025 is no exception. More than 15 states now expect employers to put salary ranges right in their job postings, and a bunch of new rules are rolling out about promotions and stiffer penalties for not playing by the book. The idea here is to shrink wage gaps and encourage fair pay across all sorts of jobs and industries.
Things are changing fast in pay transparency, especially with new workplace laws starting July 1, 2025.
Employers in multiple states now have to juggle different rules. New Jersey’s Pay & Benefit Transparency Act kicked in on June 1, 2025, joining places like California, Colorado, and New York with their own strict requirements.
Washington State employment law changes between July and September 2025 add even more for multi-state employers to deal with.
If you want to stay compliant and hire the right folks, you’ll need to know the rules for every state you operate in.
Each state has its own thresholds, posting rules, and penalty systems, and these can really affect how you recruit and what you’re legally on the hook for.
Key Takeaways
- Over 15 states now expect salary range disclosure in job ads, and penalties can hit anywhere from $100 to $10,000 per violation
- New 2025 laws go past job postings, covering promotions and extra notification rules for employees
- If you hire in more than one state, compliance gets tricky since every state’s got its own disclosure quirks and thresholds
Overview of 2025 State Pay Transparency Rules
In 2025, pay transparency laws really ramped up.
Several states rolled out new requirements for salary disclosure in job ads.
The details vary a lot, from which businesses have to comply to how much you’ll pay in fines if you miss something.
States With New or Updated Pay Transparency Laws
New Jersey’s Pay & Benefit Transparency Act started June 1, 2025, and it says any employer with 10 or more workers must put pay info in job postings.
That’s only if you’re operating in New Jersey for at least 20 weeks a year.
Washington State rolled out big changes from July to September 2025, making their pay transparency rules tougher.
Now, wage disclosure requirements are even stronger.
States with existing pay transparency laws include:
- California (15+ employees)
- Colorado (all employers)
- Connecticut (all employers)
- Illinois (15+ employees)
- Maryland (all employers)
- New York (all employers)
- Rhode Island (all employers)
- Vermont (all employers)
- Washington (all employers)
Several new workplace laws began halfway through 2025, so employers working across state lines have more hoops to jump through.
Key Differences Among State Regulations
States don’t agree on penalties.
New Jersey can fine you up to $300 for the first mistake and $600 after that.
Colorado’s fines range from $500 to $10,000 each time you slip up.
California’s penalties run from $100 to $10,000 per violation.
New York uses a tiered system: $1,000 for the first, $2,000 for the second, and $3,000 after that.
When you have to disclose pay varies:
- Some states only require it if someone asks
- Others want it in every job ad
- A few only care about promotions for current staff
Rhode Island looks at how big your company is and your intent, with fines between $1,000 and $5,000.
Illinois splits penalties based on whether the job posting is active or not.
Entities and Employers Covered
Most pay transparency rules kick in based on how many employees you have.
In New Jersey, it’s 10 or more staff for at least 20 weeks a year.
California and Illinois set the bar at 15 or more employees.
Colorado, Connecticut, Maryland, New York, and Washington don’t care about company size.
Who has to comply:
- Private employers that hit the size requirement
- Public employers like state and local governments
- Employment agencies working in the state
- Out-of-state employers with a physical presence or business ops there
If you hire in the state, accept applications from residents, or have employees working there, you’re covered.
Agencies posting jobs also have to follow these rules.
Salary Range and Compensation Disclosure Requirements
You need to put the actual salary ranges in job ads, with clear minimums and maximums.
Vague stuff like “up to $35/hour” or “$70,000 and up” won’t cut it.
Job ads also have to mention general benefits—think health insurance, paid time off, and retirement.
If there are bonuses, commissions, or piece-rate pay, you have to say so.
What you must include:
- Hourly wage or salary range with both ends spelled out
- General benefit info about major perks
- Extra compensation such as bonuses or performance pay
- Promotional opportunities for current staff
Following pay transparency best practices helps build trust and keeps you out of trouble.
These rules count for every format—online, print, email, even social media.
Major 2025 Pay Transparency Laws and Related Trends
A handful of states rolled out big pay transparency laws in 2025, with Washington State and New Jersey making some of the boldest moves.
These laws go further than just listing pay—they want to see benefit transparency and real enforcement.
Washington State: New Legislative Changes
Washington State passed a few bills in 2025 to toughen its pay transparency rules. HB 1905 says you need to list not just salary ranges, but also detailed benefit packages in job ads.
Employers have to mention health insurance premiums, how sick leave accrues, and retirement match details.
If you’ve got 15 or more staff, you need to comply by January 2026.
SB 5104 covers pay equity audits for state contractors.
If you want a state contract, you’ll need a third-party audit showing you’re following equal pay rules.
HB 1747 expands whistleblower protections for anyone reporting pay discrimination.
Workers can file complaints without worrying about retaliation, and employers who mess up could face penalties up to $10,000.
The rules also ban employers from running salary history checks while hiring.
The idea here is to stop pay gaps from sticking around.
New Jersey’s Pay & Benefit Transparency Act
New Jersey’s big transparency law takes effect in January 2026. SB 5525 says any employer with 10+ workers has to post salary ranges and benefit summaries in job ads.
You’ll need to spell out health insurance coverage, including how much employees pay and the deductible.
Paid sick leave policies and vacation accrual rates must also be clear.
HB 1308 backs this up by requiring large employers (100+ employees) to send annual pay equity reports to the state, showing pay gaps by gender and race.
If you don’t comply, fines can hit $500 to $5,000 per violation.
Employees can also ask for pay range info for their current jobs.
Intersection With Equal Pay and Paid Leave Laws
Pay transparency laws in 2025 are linking up with equal pay rules more than ever.
States want salary disclosure to support bigger workplace equity goals.
HB 1875 in Washington State ties pay transparency to equal pay enforcement.
Employers have to show how posted salary ranges match up with what people actually get paid.
Companies must explain pay differences within posted ranges, based on experience, education, or performance.
This keeps employers from posting super wide ranges and still paying unfairly.
SB 5408 makes paid sick leave transparency stronger.
Employers now have to lay out accrual rates, usage rules, and carryover info in job ads and handbooks.
These new rules recognize that real compensation includes benefits, not just base pay.
Compliance, Enforcement, and Whistleblower Protections
State enforcement got tougher in 2025. SB 5501 set up special pay transparency enforcement teams in state labor departments.
These teams can show up for surprise audits, check out anonymous complaints, and hand out penalties on the spot.
First-time mistakes get a warning, but repeat issues mean real fines.
HB 1308 boosts whistleblower protections in several states.
If you report pay transparency violations, you can’t be fired, demoted, or harassed.
The law lets workers get their jobs back, receive back pay, and claim damages if they’re retaliated against.
Employers also need to post info about employee rights on pay transparency.
Staying compliant means you need good salary benchmarking, benefit tracking, and solid documentation.
Many companies are now using HR tech to keep up with all the reporting.
Frequently Asked Questions
Pay transparency laws look pretty different depending on where you are.
Some states want salary ranges in job ads, others just want disclosure if someone asks.
Federal law hasn’t caught up, so states make most of the rules.
What are the general requirements for employers under the current federal pay transparency law?
Federal law doesn’t really require full pay transparency for most employers.
The Equal Pay Act of 1963 says you have to pay equally for equal work, but it doesn’t make you disclose salaries.
Some federal contractors do have a few extra rules.
Executive Order 11246 asks them to take steps that include some pay transparency.
The National Labor Relations Act lets employees talk about pay with their coworkers.
Employers can’t stop these conversations or punish workers for sharing pay info.
Most pay transparency rules come from state and local laws, not federal ones.
You’ll need to check your state and city for the details.
Which states have enacted pay transparency laws as of 2025, and what are the key differences among them?
New Jersey and Vermont added pay transparency laws in 2025, joining California, Colorado, Connecticut, Maryland, Nevada, New York, Rhode Island, and Washington.
Colorado says you must put salary ranges in every job ad.
California wants pay ranges for jobs with four or more employees.
New York’s law covers employers with four or more workers.
In Connecticut, you have to share pay info if someone asks or before you make an offer.
Some states focus on job ads, others on disclosures during hiring or if an employee requests info.
Nevada lets employees ask about pay after getting a job offer.
Washington requires pay range disclosure in job ads for positions with 15 or more employees.
How does the Minnesota pay transparency law differ from legislation in other states?
Minnesota doesn’t have a law requiring salary ranges in job ads.
That’s different from states like Colorado or California, where upfront disclosure is a must.
Minnesota follows federal rules that let employees discuss pay and ban retaliation for sharing that info.
Some cities in Minnesota might have their own local rules.
It’s worth checking with your city to be sure.
Minnesota leans more toward pay equity audits and reporting, rather than public salary disclosures in job ads.
That’s a different direction than states pushing for more transparency up front.
In what ways has the Illinois pay transparency law impacted hiring practices since its implementation?
Illinois doesn’t have a statewide law that requires salary ranges in job postings.
The state does have pay equity laws, but there aren’t many rules about transparency.
Chicago actually has local pay transparency requirements for some employers.
If you’re hiring for jobs in the city, you need to include salary ranges in those postings.
Some companies in Illinois just go ahead and share pay info anyway.
They do this because more and more job seekers want to see salary details upfront.
Employers with offices in several states usually keep things consistent.
So, you’ll sometimes see Illinois companies adding salary ranges to match what they do elsewhere.
As an employer, what are the compliance mandates for the Vermont pay transparency law?
Vermont’s pay transparency law started on July 1, 2025.
It says you have to put salary ranges in job ads for any position that someone could do in Vermont.
You need to list the minimum and maximum salary or hourly wage you actually expect to pay.
This goes for every job posting.
The law covers all employers advertising jobs in Vermont.
That includes remote roles if someone in Vermont could fill the position.
You have to include the pay range right in the job posting, not later on.
Waiting until the interview or offer stage isn’t allowed.
If you break this rule, you could face penalties or fines.
It’s probably a good idea to update your job posting templates and hiring steps so you don’t run into trouble.
Can you provide an overview of the changes in state-level pay transparency laws in the last five years?
Pay transparency laws really picked up steam after 2020.
Colorado kicked things off in 2021, making companies share salary ranges in job listings.
New York, California, and Washington jumped in next, but each state set its own rules about which employers had to follow them.
Some states set higher thresholds, while others included more businesses.
The trend picked up even more in 2025, with New Jersey and Vermont rolling out their own laws.
Now, even more states are talking about passing similar rules.
Lots of cities and counties didn’t wait around.
They passed their own pay transparency rules, sometimes covering even smaller companies than the state laws did.
The rules have gotten a lot more specific lately.
Early on, states just wanted basic info out there, but now, some laws spell out exactly how and when employers need to share pay details.