A growing number of states and local jurisdictions have enacted laws to expressly:
- Prohibit employers from banning employee discussions about their pay;
- Require employers to provide pay range information to applicants and employees; and/or
- Restrict employers from inquiring about an applicant’s pay history.
The first two items are commonly known as pay transparency laws. The third is commonly referred to as a salary- or pay-history ban. The aim of each of these three types of laws is to reduce pay discrimination and promote greater pay equity, according to proponents. To help you stay up-to-date on this growing area of employment law, here's an overview of these laws and where they have been enacted.
Laws prohibiting pay secrecy policies
Federal law
Under Section 7 of the National Labor Relations Act (NLRA), employees have, among other things, the right to act together to improve wages and working conditions and to discuss wages, benefits, and other terms and conditions of employment, with or without a union. The National Labor Relations Board (NLRB), which enforces the NLRA, and many courts have found that pay secrecy or pay confidentiality rules violate Section 7 rights. The NLRB maintains that employees have the right to communicate with not only co-workers about their wages and working conditions, but also with labor organizations, worker centers, the media, and the public.
As such, employers should avoid employment actions or implementing policies that could be construed to restrict employees' rights under the NLRA. Instead, take steps to better communicate information about your company's compensation program and how employees' salaries and wages are determined.
State and local laws
Twenty-one states and the District of Columbia have enacted laws that expressly prohibit employers from banning employees from discussing their own wages. Currently, they include the following states and district. Some local jurisdictions have also enacted similar laws. Check your state and local laws for details.
Laws requiring disclosure of pay ranges
Several states and local jurisdictions require private sector employers to disclose the pay range for a position to an applicant or employee. These laws generally have one or more of the following requirements:
- Employers must provide the salary range upon request of external/internal applicant.
- Employers must provide salary range to applicants automatically at a certain point in the hiring process (e.g., at the time a job offer is made).
- Employers must include salary range information in any job posting.
Here are some examples of laws that require such disclosures.
State and/or local jurisdiction & covered employers
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Pay disclosure requirements
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California
All sized employers
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Upon request, an employer must:
- Provide an applicant with the pay scale for the position for which they applied (even prior to initial interview); and
- Provide an employee with the pay scale for their current position.
An employer with 15 or more employees must include the pay scale for a position in any job posting. If the employer engages a third party to announce, post, or publish a job posting, the employer must provide the pay scale to the third party. The third party is required to include the pay scale in the job posting.
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Colorado
All sized employers
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In each posting for each job opening, an employer must disclose:
- The rate of compensation (or a range thereof); including salary and hourly, piece, or day rate compensation; that the employer is offering for the position.
- A general description of any bonuses, commissions or other forms of compensation offered for the position.
- A general description of all employment benefits offered for the position.
- The date the application window is expected to close.
- Employers must make reasonable efforts to provide, within 30 days of selection, information to certain employees about the candidate selected.
*Through July 1, 2029, employers physically located outside of Colorado with fewer than 15 employees working remotely in Colorado are only required to provide notice of remote job opportunities.
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Connecticut
All sized employers
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Employers must:
- Provide a job applicant with the wage range for a position for which the applicant is applying, upon the earliest of: (1) the applicant's request, or (2) prior to or at the time the applicant is made an offer of compensation; and
- Provide an employee with the wage range for their position upon: (1) their hiring, (2) a change in the employee's position with the employer, or (3) the employee's first request for a wage range.
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District of Columbia
All sized employers
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Employers must provide the minimum and maximum projected salary or hourly pay in all job listings and position descriptions advertised.
In stating the minimum and maximum salary or hourly pay for the position, employers must extend the range from the lowest to the highest salary or hourly pay that they in good faith believe at the time of the posting they would pay for the advertised job, promotion or transfer opportunity.
Before the first interview, employers must also disclose to prospective employees the existence of health care benefits available to the employee.
Note: These requirements were added in 2024.
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Hawaii
Employers with 50 or more employees
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Employers must disclose in job listings an hourly rate or salary range that reasonably reflects the actual expected compensation for the position.
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Illinois
Employers with 15 or more employees
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Effective January 1, 2025, employers must include in any job posting the pay scale and benefits for the position. The requirement for job postings only applies to positions that:
- Will be physically performed, at least in part, in Illinois; or
- Will be physically performed outside of Illinois, but the employee reports to a supervisor, office, or other worksite in Illinois.
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Maryland
All sized employers
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In each public or internal posting for each position, employers must disclose the wage range and general description of benefits and any other compensation for the position. If a posting wasn’t made available to the applicant, the employer must disclose the required information to the applicant: (1) before a discussion of compensation is held and (2) at any other time when requested by the applicant.
Note: These requirements were amended in 2024.
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Massachusetts
Employers with 25 or more employees
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Beginning October 29, 2025, employers with 25 or more employees in Massachusetts must:
- Disclose the pay range for a position in any job posting or advertisement.
- Provide the pay range for the position to an employee who is offered a promotion or a transfer to a new position with different job responsibilities.
- Provide the pay range for a position to an employee holding such position or to an applicant for such position upon request.
Pay range is defined as the annual salary range or hourly wage range that the employer reasonably and in good faith expects to pay for such position at that time.
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Minnesota
Employers with 30 or more employees
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Effective January 1, 2025, Minnesota employers with 30 or more employees must provide a minimum and maximum annual salary range or hourly range of compensation, or a fixed pay rate, on job postings. The range must be based on an employer’s good faith estimate and cannot be open-ended. Covered employers must also provide a general description of benefits and other compensation offered, including health and retirement benefits.
The law covers any posting made electronically or in print with desired qualifications for an available position intended to recruit applicants, including postings on the employer’s behalf by recruiters and other third parties.
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Nevada
All sized employers
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Employers must:
- Provide the wage or salary range or rate for a position to a person who has completed an interview for the position.
- Provide the wage or salary range or rate for a promotion or transfer to a new position to an employee who has:
- Applied for the promotion or transfer;
- Completed an interview for the position or been offered it; and
- Requested the wage or salary range or rate.
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New Jersey
Employers with 10 or more employees
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Effective June 1, 2025, an employer with 10 or more employees over 20 calendar weeks and who conducts business, employs individuals or takes applications for employment within New Jersey (also includes job placement, referral and other employment agencies, but excludes certain temporary help firms) must disclose in each internal or external posting for a new job or transfer opportunity:
- The hourly wage or salary, or a range of the hourly wage or salary; and
- A general description of benefits and other compensation programs for which the employee would be eligible
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Jersey City, NJ
Employers with five or more employees
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Employers that use any print or digital media circulating within the city to provide notice of employment opportunities must disclose a minimum and maximum salary and/or hourly wage, including benefits, in the posting or advertisement.
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New York*
New York City, NY*
Ithaca, NY*
Albany County, NY*
Westchester County, NY*
*Employers with four or more employees
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When advertising a job, promotion, or transfer opportunity, employers must state the minimum and maximum annual salary or hourly wage for the position.
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Cincinnati, OH*
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Upon request, employers must provide the pay scale for a position to an applicant who has received a conditional offer of employment.
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Toledo, OH*
*Employers with 15 or more employees
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Rhode Island
All sized employers
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Employers must:
- Upon request, provide the wage range for the position for which the applicant is applying.
- Provide an employee the wage range for the employee's position at the time of hire, when the employee moves into a new position, and upon request.
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Vermont
Employers with five or more employees
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Effective July 1, 2025, employers must disclose in job listings an hourly rate or salary range that reasonably reflects the actual expected compensation for the position. The requirement applies to job listings and advertisements for positions that are external, or internal transfers or promotions within a current employer.
Employers must take the following actions for these job openings:
- A role paid on a commission basis (in whole or in part) must disclose that the role is commission-based. It is not required to contain the role’s compensation or range of compensation.
- A role paid on a tipped basis must disclose that the role is paid on a tip basis and include the base wage or range of base wages for the job opening.
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Washington
Employers with 15 or more employees
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In each posting for each job opening, employers must disclose the wage scale or salary range and a general description of all benefits and other compensation.
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Remote workers
Pay transparency laws may require that a pay scale be included in the job posting if the position may be filled in the jurisdiction, either in person or by someone working remotely from that jurisdiction. However, you will need to check your state/local law, regulations and guidance for details, since not all states/local jurisdictions handle remote workers the same. Here are two examples.
- In California, an employer with 15 or more employees must include the pay scale for a position in any job posting. The California Labor Commissioner interprets this to mean that the pay scale must be included within the job posting if the position may ever be filled in California, either in-person or remotely.
- In New York, all jobs, promotions, or transfer opportunities that will physically be performed, at least in part, in the state of New York must include a range of pay when posted. Additionally, any job, promotion, or transfer opportunity that will physically be performed outside of the state of New York but reports to a supervisor, office, or other work site in the state of New York must also include pay or salary information. This includes remote positions.
Pay range
Many of these laws require employers to post/disclose the minimum and maximum pay range they reasonably/genuinely/in good faith expect to pay a successful applicant for the role. Typically, “good faith” means the salary range the employer at the time of the listing genuinely believes they are willing to pay successful applicants.
Therefore, statements like “$55,000 per year and up” or “up to $31 per hour” are unlikely to comply with such laws. Further, an unrealistic range, such as “$15 per hour to $1,000 per hour,” is unlikely to comply with such laws. Check your state and local laws for details.
Salary negotiations
These laws don’t prohibit an employer from negotiating pay. Additionally, none of the laws or guidance released thus far has indicated that the laws prohibit employers from ultimately paying more than the posted/disclosed range, as long as the range, at the time of posting/disclosure, was what the employer reasonably/genuinely/in good faith believed it would be willing to pay for the job. It’s a best practice to document the reasons behind compensation decisions.
Laws restricting inquiries about salary/pay history
Several state and local jurisdictions have enacted laws with restrictions on pay history inquiries. While these laws vary, they typically prohibit employers from:
- Seeking salary history information about an applicant, with limited exceptions
- Asking about current or former salary on application forms and in interviews
- Relying on an applicant's salary history to determine job or salary offers
- Asking for or providing salary history information during reference checks, with limited exceptions
The idea behind these laws is that applicants’ pay history may reflect discriminatory pay practices of a previous employer and result in lower wages in the new job if the information is used to set pay. Check your state and local laws for details.
The following states and district have enacted restrictions on salary history inquiries in the private sector:
States and district
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- Alabama
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Hawaii
- Illinois
- Maine
- Maryland
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- Massachusetts
- Minnesota
- Nevada
- New Jersey
- New York
- Oregon
- Rhode Island
- Vermont
- Washington
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The local jurisdictions that have such laws include:
Local jurisdictions
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- San Francisco, CA
- Kansas City, MO
- Albany County, NY
- Suffolk County, NY
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- Westchester County, NY
- New York City, NY
- Columbus, Toledo and Cincinnati, OH
- Philadelphia and Lehigh County, PA
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Permitted questions
These laws don’t typically prohibit employers from asking an applicant what they expect to make in the new position. Employers may also provide the applicant with the salary range for the role and ask if the range is acceptable. When asking such questions, employers in jurisdictions that restrict pay history inquiries may want to make clear the applicant shouldn’t reveal what they earned in their current or previous position.
Conclusion
Employers should understand the pay transparency laws and pay history bans that apply to them and ensure compliance. Even if your state or city hasn't enacted such a law yet, many jurisdictions are contemplating such laws, so watch for developments closely.
