Many employees want to know their company provides equal pay for equal work. The once-taboo act of sharing salary information has become normalized thanks to a growing movement of employees and employers ensuring a fairer workplace.
Although there currently aren’t federal laws governing salary transparency, certain states in the U.S. have passed pay transparency laws that require companies to share salary ranges under specific circumstances openly.
Find out more about states with pay transparency laws.
What are pay transparency laws?
Pay transparency laws require companies to disclose salary ranges and benefits to job candidates and employees. Transparency rules on job postings could mandate disclosure on the job posting, after the first interview, or whenever the candidate asks.
The primary purpose of pay transparency laws is to promote workplace fairness and reduce pay inequities based on gender, race, and ethnicity. When everyone knows how much others are making, they’re in a better position to advocate for equality.
States with pay transparency
Nine states currently have state-wide transparency laws, and more are coming. States like Ohio have local laws that aren’t yet state-wide.
Here’s a breakdown of the 10 states that require a salary range and other job posting requirements by state. We’ll examine how the laws differ and address the consequences of non-compliance.
1. California (January 1, 2023)
Companies with 15 or more employees—with at least one working in California—must disclose salary ranges in job postings and can’t ask about job applicants’ wage history. Any California-based business with at least one employee must tell current employees a new position’s gross pay scale upon request.
If businesses don’t comply, they could face fines between $100 and $10,000 per violation.
2. Colorado (January 1, 2021)
All employers with at least one employee in the state must inform current workers of new job openings and their application windows. Salary information, benefits, and other compensation must be listed, except for positions outside Colorado.
Fines can range from $500 to $10,000 per violation.
3. Connecticut (October 1, 2021)
Employers with at least one team member in Connecticut must disclose a position’s salary range at the applicant’s request or at the time of a compensation offer, whichever comes first. Employers also can’t ask about salary history. Additionally, they must disclose salary information to current employees at their request.
Applicants can bring civil action against a company within two years of any violation.
4. Hawaii (January 1, 2024)
Job postings for businesses with at least 50 employees must include an accurate salary range or hourly wage. However, this doesn’t apply to public employee positions where the compensation is determined by a collective bargaining agreement or to internal transfers and promotions.
Violating employers may face civil action.
5. Illinois (January 1, 2025)
Employers with 15 or more employees must include a reasonable wage scale and a general description of total compensation and benefits on job postings. This applies to positions within Illinois and remote workers who report to offices in the state.
Each violation may cost an employer between $500 and $10,000.
6. Maryland (October 1, 2020)
All employers in Maryland must provide a wage scale when prospective employees request it, and they can’t ask for a salary history.
Employers face a warning for their first violation, a $300 fine for the second, and a $600 fine for each subsequent breach.
7. Nevada (October 1, 2021)
Applicants are entitled to salary information for a role once they’re interviewed. Additionally, employees seeking an internal transfer or promotion who applied, interviewed, or received an offer are eligible for salary information.
All employers in Nevada must follow the pay transparency laws or face civil action, a $5,000 fine per violation, and investigative and attorney costs.
8. New York (September 17, 2023)
All positions posted by New York employers with four or more team members must include salary information. The law applies to positions performed in the state and those that report to a supervisor, office, or work site in New York.
Companies that violate this legislation face a $1,000 fine the first time, $2,000 the second time, and $3,000 for each subsequent breach.
9. Rhode Island (January 1, 2023)
Businesses in Rhode Island with at least one employee must provide applicants with a pay scale. Current employees must receive the same information if they request it or when they move to a new position. Employers can’t ask for an applicant’s salary history.
If the employer breaks the law, they’ll face fines between $1,000 and $5,000.
10. Washington (January 1, 2023)
Job postings in Washington must include information on compensation and additional benefits like stock options or bonuses. Employees are also entitled to know pay ranges upon request. These laws apply to any business with at least 15 employees that operates in or may hire employees from the state.
Employers who breach the law may have to pay damages to employees, including 1% interest per month. They can also be fined $500 for the first violation and up to $1,000 or 10% of damages (whichever is greater) for repeat contraventions. Additional costs, fees, and interest apply.
States considering pay transparency
Several states are considering pay transparency laws to improve pay equity. Here are some examples of salary transparency proposals awaiting legislative approval:
- Alaska: Pay ranges are to be included in job postings, and the law would prohibit asking for a salary history. This would apply to all employers with at least one employee, and fines would range from $100 to $2,000 per violation.
- Massachusetts: Salary ranges would be required for all positions at businesses with 15 or more employees in Massachusetts, including new roles, transfers, and promotions. Companies would face a warning for the first offense, up to $500 for the second, and up to $15,000 for every subsequent violation.
- Oregon: Job postings must list pay scale, benefits, and additional compensation. The law would affect all employers in Oregon and include a $1,000 fine for the first offense, increasing by $1,000 for each subsequent breach up to $10,000.
States without salary transparency
Not everyone has caught up with the growing demand for pay equity. These states have yet to consider any pay transparency laws:
- Alabama
- Arizona
- Arkansas
- Delaware
- Florida
- Georgia
- Idaho
- Indiana
- Iowa
- Kansas
- Louisiana
- Minnesota
- Mississippi
- Nebraska
- New Hampshire
- New Mexico
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Utah
- Wisconsin
- Wyoming
Take the lead in pay transparency
As pay transparency laws continue to evolve nationwide, organizations must stay informed to ensure compliance and fairness. Oyster’s global employment platform helps you easily navigate the complexities of these regulations, ensuring your pay practices align with the latest requirements.
Empower your team with clear and transparent compensation structures, fostering a culture of trust and equity. Start leveraging Oyster today to maintain compliance with U.S. and international labor laws, enhance payroll processes, and build a more transparent workplace.
About Oyster
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