It wasn’t that long ago where it was prohibited to talk about salary at work. But things have changed. Pay transparency has moved from being a workplace ‘buzzword’ (and avoided at all costs) to a compliance requirement that’s showing up in more and more state laws.
Across the country, new regulations are requiring businesses to be upfront about pay. This sometimes goes as far as including salary bands in job postings, other times during the hiring process, and in certain cases, with current employees.
The tricky part? Every state sets its own rules. One may require salary ranges in every job ad, while another only expects disclosure once a candidate reaches the offer stage. And if you don’t follow the law, penalties can follow. These can range from minor fines to steep damages if you get it wrong!
If you have a team across different states or even a mix of in-house and remote employees, staying ahead of these changes can help with avoiding fines. But really, it can also help with building trust and credibility with your employees and candidates.
What Are Pay Transparency Laws?
The main goal of these laws is to keep it fair for job candidates and employees. They should know what to expect before accepting a role or moving to a new position within your company.
Most laws cover: salary ranges, compensation, and remote jobs.
- Salary ranges: You may be required to include salary bands in postings or even share them during the hiring process.
- Total compensation: This includes base pay and some states even require you to include bonuses, commissions, stock options & benefits.
- Remote roles: Many laws apply even if the job is located outside of the state, as long as the employee can work there.
New York
New York’s pay transparency law has been in force since September 17, 2023. Here’s what you should know:
- With 4+ employees, you need to include a good-faith pay range when you advertise a job, a promotion, or a transfer.
- This isn’t limited to roles physically performed in New York. If the position reports into a New York office or supervisor, the posting still needs a range.
- It’s illegal to retaliate against applicants or employees who exercise their rights!
- The penalties start at $1,000 for a first violation, then go up $1,000 for each additional violation. There is no cap on violations.
New Jersey
New Jersey’s Pay and Benefits Transparency Law took effect June 1, 2025. Here are the details:
- ALL job postings must include pay and benefits. Whether it’s on a job board, company website, print ad, email, or even social media, you must disclose the pay scale and the benefits for the role.
- You must notify your current team about available promotions within your organization.
The DOL has proposed additional rules, but they have not passed quite yet. But we’d recommend starting to standardize your job posting templates and how you’re going to announce internal openings!
Other States with Pay Transparency Laws
California
- Include salary ranges in all job postings, employers cannot ask about salary history, and ranges must be shared with your current team on request.
- Who’s Covered: Employers with 15+ employees, this includes remote workers.
- Penalties: $100-$10,000 for each violation.
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Colorado
- Job postings must include pay scale, job description, benefits, and posting close date. This is excluded if the role is completely outside Colorado.
- Who’s Covered: If you have at least one Colorado employee!
Penalties: $500-$10,000 per violation.
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Connecticut
- Pay range must be given at applicant’s request, before an offer, or at the time of offer. Employees can request ranges when moving roles. Salary history questions are not allowed.
- Who’s Covered: All employers.
- Penalties: Civil suits can be filed within two years. A person can sue to recover lost wages and employers may have to pay an extra penalty.
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Hawaii
- Salary ranges must be listed in job postings, but internal transfers are exempt.
- Who’s Covered: Employers with 50+ employees.
- Penalties: Civil action that include damages and costs.
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Illinois
- Pay ranges and a general description of benefits must appear in job postings. This applies to remote roles tied to Illinois offices or supervisors.
- Who’s Covered: Employers with 15 or more employees.
- Penalties: $500-$10,000 per violation.
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Maryland
- You must provide a pay range at an applicant’s request. Plus, salary history questions are banned.
- Who’s Covered: All employers.
Penalties: You’ll get a warning for the first violation, fined $300 for the second, $600 for the third. And the penalties go on!
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Nevada
- Must provide salary ranges to applicants who interview and to employees applying for promotions (if they request it).
- Who’s Covered: All employers.
- Penalties: $5,000 fines per violation, with the possibility of civil action.
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Rhode Island
- Must disclose ranges at applicant’s request, before an offer, or for employees when hired or promoted. Salary history bans apply here also!
- Who’s Covered: Employers with at least one Rhode Island employee.
- Penalties: $1,000-$5,000 fines.
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Washington
- Job postings must include salary ranges and benefits. This also applies to remote roles if they live in Washington.
- Who’s Covered: Employers with 15+ employees.
Penalties: Damages plus 1% monthly interest will be applied. You can also expect fines up to $1,000 (or even 10%) of damages.
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What Should You Do Now?
Treat this as an opportunity to clean up your entire hiring workflow!
👉 Take a look at your job posting templates and make sure you include ranges & benefits if your state mandates it.
👉 Look at all of your job descriptions. Make sure they are aligned with responsibilities and the compensation you’re offering.
Do you hire in different states or offer remote?
👉 Understand each state’s compliance and document it to reference.
👉 Get your HR team and managers up to speed on the law. Let them know there are some states where salary history talks are not allowed
How Megapay Can Help Your Team!
If you don’t have an HR team in place, it might seem like a lot to manage keeping up with the changing pay transparency laws.
That’s where Megapay’s Fractional HR service comes in to help! You get access to real HR professionals without the overhead of hiring in-house staff. We’ll help you stay on top of new requirements while freeing up some of your time!