Pay transparency is no longer a trend—it’s quickly becoming the law in many states and cities. For employers, this means that job postings, compensation conversations, and pay practices are under increasing scrutiny. While compliance is critical, there’s also a big opportunity: done well, pay transparency builds trust with employees and strengthens your employer brand.
Where We Are Now
Over a dozen states and municipalities now require some level of pay disclosure, most commonly in job postings. These laws vary in scope, but many require:
- Posting salary ranges in all external job ads (and in some cases, internal postings too).
- Disclosing benefits and perks along with base pay.
- Providing pay ranges to applicants or employees upon request, even if not listed publicly.
The patchwork of requirements means multi-state employers need to carefully track where their employees are located and adjust postings accordingly.
Common Compliance Pitfalls
- Using vague ranges (“$40,000–$100,000”) that aren’t realistic. Some states flag these as noncompliant.
- Forgetting about internal postings. Many laws apply to promotions and transfers as well.
- Overlooking benefits. States like Colorado require more than just base pay to be included.
- Failing to keep documentation. Employers must be prepared to show how ranges were determined.
Best Practices for Employers
- Audit your pay structures. Make sure your ranges are accurate, up-to-date, and equitable across similar roles.
- Create a standard posting process. Develop templates that include all required pay and benefits information.
- Train recruiters and managers. Ensure anyone involved in hiring knows what can—and must—be disclosed.
- Stay ahead of the curve. Even if your state doesn’t require it yet, transparency is becoming the norm.
The Bigger Picture
Pay transparency laws aim to close wage gaps and reduce inequities in the workplace. Beyond compliance, being open about compensation can improve employee trust, engagement, and retention. Job seekers are already favoring employers who share salary information up front, so embracing transparency now can make your organization more competitive.
Don’t wait until you’re forced to comply—pay transparency is here to stay. By building clear, fair pay practices now, employers can meet legal requirements, strengthen culture, and position themselves as employers of choice.