This year has seen a surge in pay transparency laws aimed at curbing pay disparities and helping workers negotiate fairer wages. Such legislation requires employers to disclose salary ranges and benefits in their job postings. Colorado was the first to create a pay transparency law in May 2019. Prior to this year, a number of states have followed suit, including California, Connecticut, Maryland, Nevada, New York, Rhode Island, and Washington. Local measures are in effect in Jersey City, New Jersey; New York City, New York; Ithaca, New York; Westchester County, New York; Cincinnati, Ohio; and Toledo, Ohio.
2024 Legislation Almost Doubles the Number of Pay Transparency Laws
Hawaii
On January 1, 2024, Hawaiian legislation came into effect requiring employers with 50 or more employees to disclose hourly rates and/or salary ranges in job postings.
Illinois
Illinois’s pay transparency law requires employers with 15 or more employees to disclose the salary range of a position along with a description of benefits and other forms of compensation. Furthermore, this law requires employers to provide current employees with information on promotion opportunities within 14 calendar days after posting the position externally. The law is not effective until January 1, 2025.
Maryland
Effective October 1, 2024, Maryland’s Equal Pay for Equal Work – Wage Range Transparency legislation expands the law to mandate employers to disclose minimum and maximum hourly or salary ranges for a position. This requirement applies to internal and external job postings. The law applies to any job performed in part in Maryland, meaning the law applies to employers outside of the state if any aspect of the position is performed in the state.
Minnesota
The Minnesotan law requires a starting salary range and a description of benefits, including health and retirement benefits, and other compensation in postings for open positions. This applies to employers with 30 or more employees within Minnesota. The law takes effect on January 1, 2025.
Vermont
Signed into law this June, the Vermont pay transparency law will take effect on January 1, 2025. Employers with five or more employees must include minimum and maximum hourly/salary ranges, including whether tips or commissions will be paid, in job postings
