Pay transparency is quickly becoming a major focus in the U.S. While there is no comprehensive federal pay transparency law in the U.S., states and municipalities have been implementing a variety of laws designed to address wage gaps, boost equality, and increase accountability in hiring practices. The trend is expanding, and as we move into summer, more states have regulations that are set to take effect and will have a significant impact on employers and job-seekers alike.

In addition to the new laws going into effect that are addressed below, employers should actively monitor pay transparency developments in their states of operation to ensure compliance, as the trend is likely to continue spreading across the country.

What Are Pay Transparency Laws?

Pay transparency laws generally require employers to disclose salary ranges, compensation details, and benefits in external and internal job postings, at a specified point during the hiring process, and/or when employees request such information. In some cases, they also prevent employers from asking candidates about their salary history or discriminating against applicants who decline to provide such information. These laws are part of broader efforts to reduce discrimination with respect to wages based on gender, race, or other impermissible factors and to ensure fairness in hiring and compensation processes.

The idea is simple: If everyone knows what the pay range is for a role, employers are held accountable for their compensation structure, and pay disparity practices are less likely to be perpetuated. Additionally, workers are better equipped to negotiate a fair wage and make informed decisions about job opportunities. Employers can also benefit from being required to take a closer look at their compensation schemes because they may uncover existing roadblocks with respect to offering competitive compensation packages and can benchmark their pay practices against competitors that will also be required to disclose compensation and benefits information in public postings.

Pay Transparency Landscape to Date

Between 2021 and 2024, several states have led the charge of implementing pay transparency laws, including Colorado, Connecticut, California, New York, D.C., Hawaii, Washington, Nevada, Maryland, Rhode Island, and Vermont. A few other states, such as Illinois and Minnesota, implemented laws that took effect as recently as January 1, 2025. These laws vary in scope, but the central theme remains the same: provide clear accessible pay information to promote equity in the workplace.

Pay Transparency Laws in 2025: Key State Updates

The trend of adopting pay transparency laws is gaining momentum, and several states are ramping up their pay transparency efforts. Of note, some local municipalities are even enacting pay transparency legislation, such as cities in New York and Ohio. Employers must remain diligent in tracking these state and local developments and adapting their pay practices accordingly. The summer and fall of 2025 will see a few new pay transparency laws taking effect. Here’s a look at some of the key developments:

New Jersey: New Jersey Wage Transparency Act

Beginning June 1, 2025, the New Jersey law will require employers with 10 or more employees that do business in or employ people in New Jersey to disclose specific pay information. Covered employers must provide the hourly wage or salary range in any new job postings, including internal transfer opportunities, and must also describe the benefits and compensation programs available to employees. Employers that fail to comply with the new law could face civil penalties ranging from $300 to $600 per violation.

Vermont: An Act Relating to Disclosure of Compensation in Job Advertisements

Effective July 1, 2025, Vermont’s law will require all employers with five or more employees — at least one of whom works in the state — to disclose compensation details in job advertisements. This applies to both positions located in Vermont and remote positions primarily working for Vermont-based offices. Employers must include the good faith minimum and maximum salary or hourly wage range for every job posting, whether for new hires or internal promotions. There are also specific provisions for commissioned or tipped roles as well.

Massachusetts: Massachusetts Act Relative to Salary Range Transparency

On October 29, 2025, Massachusetts will implement a pay transparency law which requires employers with 25 or more employees in the state to disclose pay ranges for all job postings, and the pay range for the position must be included in the job posting itself. Additionally, employers must provide the pay range to employees who are offered a promotion or transfer to a new role. Employees will also be able to request the salary range for their current position or any position they are applying for.

Looking Ahead: A National Movement?

As of November 2025, about 15 states will have pay transparency laws, and the pay transparency law trend is likely to continue expanding. Employers will need to stay proactive in adjusting their hiring and compensation strategies to ensure compliance, which will likely include reviewing pay equity practices and updating internal systems for salary disclosures.

In the coming years, pay transparency laws are expected to reshape the way both employers and workers think about compensation, making workplaces more equitable and ensuring that workers are paid fairly for their work.

With more states taking action, pay transparency is no longer just a buzzword — it’s becoming a cornerstone of the fight for fair pay and workplace equality. Further, given the momentum, states may begin introducing stronger enforcement mechanisms, such as fines, legal action, or loss of business contracts with the state, making compliance even more important as we move forward.