In recent years, pay transparency has become a hot topic, with many states passing laws to ensure greater salary openness and tackle wage inequities. As of 2025, states like California, Colorado, Connecticut, Maryland, Nevada, New York, Rhode Island, and Washington have established laws requiring employers to disclose salary ranges in job postings or upon request. This year, Illinois, Minnesota, Massachusetts, New Jersey, and Vermont will also roll out similar legislation, further expanding the movement toward transparency.
At its core, pay transparency legislation aims to promote fair pay practices by requiring employers to disclose salary ranges for open positions. This approach seeks to address wage disparities, especially those tied to gender and race, by providing clarity about compensation. Armed with this information, job seekers and employees can make better-informed decisions and negotiate for fair wages based on market standards.
For states with these laws in place, compliance typically means including salary ranges in job postings, sharing pay scales when requested, or providing this information during the hiring process. Although specifics vary from state to state, the overarching goal is the same: to promote fairness, equity, and trust between employers and their workforce.
Even in states without legal requirements, adopting pay transparency can benefit employers. Companies that voluntarily embrace these practices often find themselves with a stronger employer brand, better talent acquisition results, and a culture of trust among their teams. Furthermore, it allows organizations to proactively address potential inequities before they become problems, creating a workplace that values fairness.
One of the most significant benefits of pay transparency is its ability to help close the wage gap. Publicly sharing salary information enables employers to identify and correct unjustified pay disparities, ensuring that all employees are compensated equitably for their work. This transparency not only fosters fairness but also contributes to higher job satisfaction and stronger employee loyalty, as workers feel more valued and respected.
While not every state currently requires pay transparency, the advantages of adopting such practices are clear. By fostering equity, improving organizational reputation, and boosting morale, pay transparency is a win-win for both employers and employees. As this trend gains momentum, more organizations may find it beneficial to lead the way in promoting salary openness and fair pay practices.
Elga Lejarza
Founder & CEO
HRTrainingClasses.com
