Updated 2/12/25
Pay Transparency (or salary transparency/wage transparency) is the practice of openly sharing compensation information with employees and job candidates. This often includes disclosing salary ranges for job postings and providing this information to current employees upon request, creating an open and equal environment.
Legislation related to pay transparency continues to expand across the country, with additional state laws taking effect in 2025, including:
Illinois – Beginning January 1, 2025, employers with 15 or more employees are required to include the pay scale and benefits for a specific job in job postings. The law covers remote positions when the work will partially or wholly be performed in Illinois or when it will be performed outside of the state but the role will report into an office or supervisor or work site in Illinois.
Minnesota – Beginning January 1, 2025, employers with 30 or more employees at one or more sites in Minnesota must disclose the starting salary range and a description of benefits available and other compensation offered.
Massachusetts – Starting October 29, 2025, employers with 25 or more employees must disclose pay ranges for positions in postings, to employees transferring into new positions, or upon request. They do not need to disclose bonus or commission information. Starting February 1, 2025, employers with 100 or more employees subject to EEO-1, 3, 4, or 5 reporting requirements need to file a wage data report with the state.
New Jersey – As of June 1, 2025, employers must include a wage or salary range in internal and external job postings. This applies to employers with 10 employees over 20 calendar weeks and who conduct business in New Jersey, employ persons in the state, or accept applications for employment within the state.
What This Means for You
Pay transparency tends to promote greater pay equity by holding companies accountable for fair pay practices. It can also attract more talent and reduce inefficiencies in the hiring process, as candidates who are aware of salary ranges upfront are more likely to be satisfied with the offered compensation.
Additional benefits include increased employee trust, retention, and engagement. However, pay transparency may also require employers to quickly reformulate pay practices and could expose your company to the risk of competitors poaching employees.
What You Can Do
Regardless of whether your state currently mandates pay transparency, it is advisable to review and ensure that salaries are equitable and aligned with your company’s pay strategy. Developing a comprehensive pay strategy and updating pay ranges is recommended. Conducting a salary analysis and creating a structured salary framework, either internally or with the help of a third party, can be highly beneficial. Additionally, having a thorough communication plan to introduce the new salary ranges once the project is completed is essential.
Note: For informational purposes only. This is not legal advice.
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