States and localities have been adding pay transparency requirements since 2021. Most recently, Maryland’s Wage Range Transparency Act took effect on Oct. 1. New legislation in Hawaii was also enacted in 2024, while Colorado and the District of Columbia amended their pay transparency laws.
Pay transparency is when an employer uses established practices to openly communicate pay-related information to current or prospective employees.
Upcoming Pay Transparency Updates
Several states have pay transparency laws going into effect in 2025, including the following:
- Illinois—Employers with 15 or more employees will be required to include pay scale and benefits disclosures in their job postings on Jan. 1, 2025.
- Minnesota—Also effective Jan. 1, 2025, employers with 30 or more employees must include the starting salary range and a general description of benefits and other compensation in their job postings.
- Vermont—Employers with five or more employees must include the compensation or compensation range in most job postings starting July 1, 2025.
- Massachusetts—Employers with 25 or more employees must disclose salary range information on job postings as of July 31, 2025.
Employer Takeaway
Pay transparency laws now cover more than 1 in 4 workers in the United States. Employers should do their best to remain current on developing legislation in their jurisdictions and where their employees are located.
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