Salary Transparency Laws: Employer Compliance Across States

The Pay Transparency Movement

Pay transparency laws requiring employers to disclose salary ranges in job postings have moved from a niche concept to a mainstream compliance obligation. As of 2023, Colorado, California, Washington, New York City, and several other jurisdictions require some form of salary disclosure. More states and cities are actively considering similar legislation.

These laws aim to reduce pay gaps by giving candidates and employees access to compensation information. For employers, they require a fundamental shift in how compensation is communicated externally and, often, internally.

What the Laws Typically Require

While each jurisdiction's law is different, most pay transparency laws share several common elements:

Salary range in job postings. Employers must include the minimum and maximum salary or hourly rate they are willing to pay for a position. The range must be based on a good-faith determination of what the employer would actually pay, not an artificially broad range designed to comply technically while disclosing nothing useful.

Applicability triggers. Some laws apply to all employers. Others have size thresholds, commonly 15 or more employees. Some apply only to postings for positions that will be performed within the jurisdiction, while others apply to any position that could be performed remotely from that location.

Internal posting requirements. Several jurisdictions also require employers to disclose pay ranges to existing employees, either upon request, when they apply for internal positions, or proactively when they are hired or promoted.

Benefits disclosure. Some laws, such as Washington's, require disclosure of other compensation elements including bonuses, commissions, and benefits.

Key Jurisdictions

Colorado was the first state to require salary ranges in all job postings. The law applies to any job that could be performed in Colorado, which effectively means remote positions must include ranges.

New York City requires salary ranges in job postings for positions performed in whole or in part in the city, for employers with four or more employees.

California requires employers with 15 or more employees to include pay scales in job postings. Employers must also provide the pay scale for a current employee's position upon request.

Washington requires employers with 15 or more employees to include salary ranges and a description of benefits and other compensation in job postings.

New York State enacted a statewide law effective in 2023, extending transparency requirements beyond New York City.

Practical Compliance Steps

1. Establish salary ranges for every position. If you do not already have defined pay ranges, you need to create them. Base ranges on market data, internal equity analysis, and your actual compensation practices. Ranges should be specific enough to be meaningful. A range of $40,000 to $200,000 is not good faith compliance.

2. Determine which laws apply to you. Map your workforce, hiring locations, and remote work policies to determine which jurisdictions' laws cover your postings. Remember that some laws reach positions that can be performed remotely from the jurisdiction.

3. Update all job postings. Include compliant salary ranges in every job posting across all platforms, including your website, job boards, and recruiting materials.

4. Train recruiters and hiring managers. Ensure everyone involved in the hiring process understands what can and cannot be discussed about compensation and that ranges disclosed in postings should align with actual offers.

5. Prepare for internal conversations. When salary ranges become public, existing employees will compare their pay to posted ranges. Be ready to explain how individual compensation was determined and address any concerns. This is also a good time to conduct a pay equity review.

6. Document your methodology. Keep records of how you determined each salary range, including market data sources and internal comparisons. This documentation protects you if a range is challenged.

The Ripple Effect

Even if your employees are in states without transparency laws, the cultural shift is real. Candidates increasingly expect salary information upfront, and job postings without ranges receive fewer applications in competitive markets. Many employers are adopting transparency voluntarily as a recruiting advantage.

Pay transparency is not going away. Employers who embrace it thoughtfully, with well-defined ranges built on solid compensation data, will find it easier to recruit, retain, and maintain internal equity.