Pay transparency laws require employers to share pay ranges with applicants or employees. 17 jurisdictions have one in effect: California, Colorado, Connecticut, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Rhode Island, Vermont, Virginia, Washington. Laws are enacted but not yet in effect in Delaware.
What the laws usually require
- A good-faith pay range in job postings, either always or on request.
- In some states, a description of benefits and other compensation.
- Notice of promotion opportunities to current employees in a few states, such as Colorado.
- Records of pay ranges and job histories for a set number of years.
Remote jobs
Many laws apply to remote jobs that could be filled by someone in the state, even if your company is elsewhere. Employers recruiting nationally often post ranges in every listing to keep one process.
Salary history bans
Many of the same states also bar employers from asking about an applicant's past pay or using it to set an offer.
Setting a good-faith range
- Base it on what you actually expect to pay for the role at hiring.
- Avoid ranges so wide they say nothing.
- Use market data, such as BLS wage statistics, to check that the range is realistic.
Rules change often and many cities have their own laws. Confirm requirements with each state's labor department before posting.