Salary Transparency Laws by State in 2024

Gabrielle Sinacola | Jun 13, 2023

Salary Transparency Laws & Best Practices in 2024

Salary transparency laws are a relatively new phenomenon in the US—until Colorado enacted the 2021 Equal Pay for Equal Work Act, no US jurisdictions required businesses to disclose pay information to employees or the public.

Since 2021, eight additional states and multiple jurisdictions have passed similar laws. An increasing number of legislators and policy groups have also called for additional action, identifying wage secrecy as a contributor to both the gender pay gap and wage gaps affecting people of color—and citing a growing body of research showing that salary transparency can increase pay equity.

To stay compliant, business owners and HR teams need to understand and abide by current laws and plan for the likelihood of future salary transparency legislation.

Pay & Salary Transparency Laws by State

There are slight variations between pay transparency laws by state. Each state can adopt and enact its pay transparency policies, and the landscape frequently changes. Many states have enacted new laws in recent years, with some legislation still spending.

Some pay transparency laws by state region differ from the requirements enacted on a state level. The city in which an employer is based may have more of an impact on the specificities of the pay transparency law.

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Salary transparency laws in effect as of May 1, 2023

A salary transparency law is any law that requires companies to disclose salary information to employees, applicants, or state agencies.

As of May 1, 2023, eight US states (including Colorado, Connecticut, Maryland, Nevada, Rhode Island, Illinois, California, and Washington), five cities, and one county have pay transparency laws in effect. Here’s an overview of active pay transparency laws by state.

California

Legislation Title: CA SB 1162

Effective Date: January 1, 2023

Job posting requirements: If you have 15 or more employees and at least one employee in California, you are required to include pay scales in job postings.

Verbal or written disclosure: All California employers are required to disclose salary information for an employee’s position or an applicant’s targeted position on the employee’s or applicant’s request.

Other: California employers with 100 or more employees must also report pay data to the state’s Civil Rights Department. Required information includes the median, mean, and hourly rate by race, ethnicity, and sex for each job category.

Colorado

Legislation title: Equal Pay for Equal Work Act

Effective Date: January 1, 2021

Job posting requirements: Colorado law requires employers with at least one employee in the state to disclose salary ranges, benefits information, and a description of any other types of compensation (such as bonuses or commissions) in job postings. Note: The disclosure requirement does not apply if hiring takes place without a job posting.

Other: Employers must notify employees of promotional opportunities and keep job descriptions and wage rate records for the duration of the employee’s tenure plus two additional years.

Connecticut

Legislation title: CT HB 6380

Effective Date: October 1, 2021

Verbal or written disclosure: If you have at least one employee in Connecticut, you must disclose salary range for an applicant’s targeted position in the earliest of the following situations:

  • On the applicant’s request
  • Before you’ve discussed pay for the position with the applicant
  • Before or when you make the applicant an offer of compensation

You’re also required to disclose information about pay range for an employee’s current position when an employee is hired, changes position, or requests the information.

Maryland

Legislation Title: MD HB 123

Effective Date: October 1, 2020

Verbal or written disclosure: All Maryland employers must provide an applicant with a wage range for the applicant’s targeted position on the applicant’s request.

Nevada

Legislation Title: NV SB 293

Effective Date: October 1, 2021

Verbal or written disclosure: Nevada employers must provide salary information to applicants for the role they interview for. They must also disclose salary information to employees about the wage range for a promotion or transfer if they request it and meet at least one of the following conditions:

  • The employee has applied for a promotion or transfer
  • The employee has completed an interview for the promotion or transfer
  • The employee has received an offer for a promotion or transfer

Rhode Island

Legislation Name: RI SB 270

Effective Date: January 1, 2023

Verbal or written disclosure: If you have at least one employee in Rhode Island, you’re required to disclose salary ranges for an employee’s current position or an applicant’s targeted position under the following conditions:

  • On the applicant’s or employee’s request
  • For applicants, before discussing an individual offer of compensation
  • For employees, at the time of hire or when an employee moves into a new position

Washington

Legislation name: WA SB 5761

Effective Date: January 1, 2023

Job posting requirements: If you have 15 or more employees and engage in business in Washington or recruit for jobs that could be filled remotely by Washington-based employees, you must include salary information, a general description of benefits, and information about other compensation (such as bonuses, stock options, commissions, or relocation assistance) in job postings. Note: Washington prohibits employers from avoiding disclosure requirements by stating in job postings the employer will not accept Washington applicants.

Verbal or written disclosure: For internal transfers and promotions, employers must disclose salary information if requested by current employees.

Illinois

Legislation title: IL SB 1480

Effective Date: March 24, 2023

Other: Employers with 100 or more employees in Illinois must apply for an Equal Pay Registration Certificate by submitting pay and demographic data to the Illinois Department of Labor. Covered businesses must recertify every two years.

New York State Laws

Legislation title: SB 9427A

Effective Date: September 17, 2023

Disclosure Requirement: New York employers with four or more employees to disclose salary ranges for positions that can or will be performed at least partially in the state. This includes jobs that will be performed outside of the state but report to a supervisor, office, or other work site in New York.

New York regional laws

Legislation names:

Effective Dates:

  • September 1, 2022 (City of Ithaca)
  • November 1, 2022 (New York City)
  • November 6, 2022 (Westchester County)

Job posting requirements:

  • Ithaca. Employers with four or more employees in the City of Ithaca must publish salary ranges in job, transfer, and promotion postings.
  • New York City. If you have four or more employees and at least one of them is in New York City, you are required to include salary ranges and benefits overviews in job listings for positions that can or will be performed in New York City (including remote jobs).
  • Westchester County. Any employer posting for a job that can be performed in Westchester County (including a remote job) must disclose salary ranges in job listings.

Cincinnati, OH

Legislation Name: City of Cincinnati Ordinance No. 83 - 2019

Effective Date: March 13, 2020

Verbal or written disclosure: If you have 15 or more employees in Cincinnati, you are required to disclose salary range information to an applicant after extending an offer if the applicant also requests the information.

Jersey City, NJ

Legislation name: City of Jersey City Ordinance 22-026

Effective Date: April 13, 2022

Job posting requirements: If you have five or more employees in Jersey City and a place of business in Jersey City, you must disclose salary ranges and describe benefits in job, transfer, and promotion postings.

Toledo, OH

Legislation Name: Toledo Pay Equity Act

Effective Date: November 1, 2022

Verbal or written disclosure: Employers with 15 or more employees in Toledo must disclose a position’s salary range after extending an offer to an applicant if the applicant also requests the information.

Pending Pay Transparency Laws by State

As of May 1, 2023, three states have proposed or approved salary transparency laws that are not yet in effect. Here’s an overview of pending pay transparency laws by state.

New York

In December 2022, New York state passed SB 9427A, legislation that will require all private New York employers with four or more employees to disclose salary ranges for positions that can or will be performed at least partially in the state, including jobs that will be performed outside of the state but report to a supervisor, office, or other work site in New York. The law will go into effect on September 17th, 2023.

Note: New York law doesn’t specify whether the four-employee threshold refers to total employees or employees in the state.

Hawaii

Hawaii legislators have proposed a measure, SB 1057, that would require employers to disclose expected salary ranges in job listings and to update listings if a range changes before a hire is made. The legislation would also require employers to send employees an annual update on the salary range for their position and for similar roles.

Illinois

Illinois legislators have proposed a bill, HB 3129, that would require all companies with 15 or more employees to disclose salary ranges in job listings.

Note: Illinois law does not specify whether the 15-employee threshold applies to all employees or only to employees within the state.

Many jurisdictions have also passed salary history bans, either as a part of their pay transparency legislation or in a separate bill or ordinance. These bans prohibit employers from asking candidates about their salary history, and, in some cases, from using information about salary history to make an initial offer of compensation.

The following states have active salary history bans as of May 1, 2023: Alabama, California, Colorado, Connecticut, Delaware, DC, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan (state agencies), New Jersey, New York, Nevada, North Carolina (state agencies), Oregon, Pennsylvania (state agencies only), Rhode Island, Vermont, Virginia and Washington (state agencies).

Salary transparency best practices

If you have an employee in a state with an active pay transparency law, you may be required to disclose certain information to maintain business compliance. If you don’t, don’t assume you’re off the hook—laws change, and in some cases, even listing a job that could theoretically be performed by a remote worker in a jurisdiction with a salary transparency law can trigger compliance obligations. If you’re hiring remote employees, it may be safer to assume that pay transparency laws apply to you.

There may be cascading benefits to this approach, too. Pay transparency policies can build trust with employees, promote internal career growth pathways, and allow applicants to self-select based on pay requirements.

If you plan to adopt a salary transparency policy, these best practices can help.

  • Create a job listing template. Create a standard templated section for job postings that your HR team can fill in with the necessary information for the role, such as salary range and benefits information. Using a template can ensure consistency and make sure that you don’t forget to post all required information.
  • Adopt a consistent policy. If you have employees in multiple states, consider basing your company-wide policies on the most stringent salary transparency laws that apply to you. Applying the same policies to all employees can encourage equitable pay practices and allow you to hire the best people for your team (regardless of their state of residence).
  • Create a guide for HR teams. Create a framework for your HR team and managers regarding salary discussions with employees who request information. Identify your minimum disclosure requirements as well as other information you’d like to include. Although you may only be required to disclose the salary range for an employee’s current position, sharing broader pay structure information can demonstrate trust and encourage open communication between employees and management teams.
  • Evaluate your current compensation plan. Ask yourself what would happen if you immediately disclosed all salary information. Would your employees be happy? Do you have a pay structure that justifies compensation decisions? If so, you’re in a good position to adopt a salary transparency policy. If not, you may want to rethink your compensation plan through a pay equity and salary transparency lens. Although you shouldn’t necessarily cut a high-performer’s salary to level the playing field or immediately increase your total payroll obligations by 20%, making a plan to move towards a compensation structure you’re comfortable disclosing can set you up for a smooth transition.
  • Be proactive. Don’t wait until salary transparency is an immediate concern for you. Even if you aren’t currently subject to salary transparency requirements, you may have (or soon have!) an employee in a state with upcoming legislation, hire a remote employee in a state with laws in effect, or publish a job listing that requires disclosure. Develop a communication plan and outline a pay transparency policy for your company so that when laws apply to you, you’ll be prepared.

Need help managing the details of which pay transparency laws apply to your business? Mosey tracks pay transparency laws by state, upcoming legislation, and local requirements to provide end to end coverage for business compliance. Get notified when new laws are announced and when they become effective. A single tool to work across teams to ensure full compliance for HR, payroll, tax, and insurance requirements are met.

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