2025 Pay Transparency Laws by State Guide

As an HR leader or CFO in a fast-growing company, you face the challenge of managing compensation, recruitment, and legal compliance. Scaling headcount 2–3x annually can be tough while staying aligned with legal requirements. This is especially true with new pay transparency laws by state becoming a priority for many organizations.

According to recent studies, 75% of employers are not ready for the changes brought on by pay transparency laws. This creates extra pressure for People Ops teams with limited resources. Organizations with lean HR and finance teams, especially in SaaS, fintech, e-commerce, and professional services, may find these changes particularly challenging.

In this blog, we’ll explore the key details of 2025’s pay transparency laws by state, what they mean for mid-sized to growth-stage companies, and how to ensure compliance. We’ll discuss how these laws impact HR teams, CFOs, and recruiting managers and share practical solutions for adapting to these changes effectively.

Key Takeaways

• 2025 pay transparency laws will require salary disclosures in job ads across multiple states, impacting HR teams and recruiters.
• Remote teams must comply with the regulations of the employee's location, not just the employer's.
• Laws vary by state, with differences in employer size requirements and penalties for non-compliance.
• Companies will need to adjust compensation strategies to meet new disclosure requirements and avoid pay gaps.
• Technology tools can help HR teams track changes in laws and maintain accurate, up-to-date compensation data.

Federal Context and Legislative Trends

The federal government currently does not mandate salary transparency across all private employers. However, the issue is gaining momentum at the state level. States are stepping up to fill the void left by the lack of federal regulation, pushing for more pay transparency across the board.

Here are some key federal regulations that provide a foundation for the current pay transparency environment.

Existing Federal Regulations

• Equal Pay Act of 1963: This law prohibits pay discrimination based on gender. It ensures that men and women are paid equally for equal work.
• Title VII of the Civil Rights Act: This law prohibits job discrimination based on race, color, religion, sex, or national origin. It also applies to cases of pay discrimination.
• EEOC and DOL Guidance: The Department of Labor and the Equal Employment Opportunity Commission continue to issue guidance on compensation practices, especially for federal contractors.

Pending Federal Legislation

• Salary Transparency Act: A proposed bill that would have required pay range disclosures in job postings across the country. It failed to pass in recent sessions.
• Federal Contractor Pay Transparency: While a rule for federal contractors was withdrawn, existing anti-discrimination rules continue to apply to these employers.

While there are no comprehensive federal pay transparency laws in place, federal agencies continue to provide guidance. For now, state laws are the primary source of pay transparency regulation.

Overview: The 2025 State Pay Transparency Landscape

By mid-2025, over 15 states and the District of Columbia will require salary or wage range disclosure in job ads or upon request from candidates or employees. These regulations vary significantly in terms of which employers must comply, what needs to be disclosed, and enforcement penalties. 

Key Factors Driving Compliance Complexity

As more pay transparency laws are introduced, organizations face several significant challenges when it comes to staying compliant. Here are the main factors contributing to this complexity:

1. Expanding Coverage
   
   • New or expanded laws are taking effect in Illinois, Minnesota, Vermont, Massachusetts, New Jersey, Washington, and Cleveland, Ohio in 2025.
   • Delaware is expected to follow suit with its own legislation, likely to be effective in 2026.
2. Multi-State and Remote Work
   
   • Compliance with pay transparency laws often depends on the state where the work is performed or where the employee will report.
   • This means companies with remote or distributed teams must pay attention to the regulations in each employee's home state, not just the employer’s location.
3. Pending Expansion
   
   • At least 10–12 more states are considering bills that would introduce varying degrees of pay transparency requirements.
   • These pending laws could further increase the compliance burden, especially for companies operating across multiple states.

Now that we've reviewed the broader picture, let's break down the specific state regulations in more detail.

State-by-State Pay Transparency Laws

The following states have enacted or are enacting pay transparency laws that impact employers. These regulations vary significantly, and each state has different requirements regarding compliance, penalties, and scope.

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Note: Some states have additional unique requirements, expanded notification obligations, and local ordinances that may supersede or supplement state law (for example, New York City, Jersey City, etc.). Please refer to state/local guidance and legal counsel for details.

After reviewing the current regulations, it’s essential to look ahead at the states where pay transparency laws are likely to be enacted.

Pending Legislation and States Likely to Enact Transparency

As states continue to adopt pay transparency laws, several other states are considering similar legislation. Pending bills may bring new requirements for salary disclosures, applying to a broader range of employers and industries.

The movement towards pay transparency is not slowing down, and many states are taking steps toward enacting such laws. Here are the states where pay transparency laws are currently pending or likely to be introduced soon:

• Delaware: A bill under consideration in Delaware will require salary range disclosure for job postings and benefits for employers with 10 or more employees.
• Alaska: A proposed bill in Alaska seeks to mandate the disclosure of salary ranges in job advertisements. It may also cover both remote and in-state positions.
• Indiana: Indiana is considering a law that would require companies to include salary ranges in their job postings. This bill could impact all employers with more than 15 employees.
• Iowa: Iowa is considering legislation that would require employers to disclose salary ranges and benefits in job postings, particularly for jobs reporting to Iowa offices.
• Kentucky: A bill being discussed in Kentucky would require salary transparency in job postings for employers with more than 20 employees.
• Michigan: Michigan is likely to introduce legislation requiring salary disclosure in job ads. The bill may apply to both remote and in-state roles.
• Missouri: A proposed law in Missouri would require employers to include salary ranges in job postings for positions within the state.
• Montana: Montana is likely to adopt pay transparency laws that would require employers to disclose salary ranges in job ads and provide pay scale information to employees upon request.
• Oregon: Oregon is considering a bill that would require salary and benefit information in job postings for employers with 10 or more employees.
• Virginia: A bill in Virginia would require salary disclosure in job ads and apply to both remote and in-state roles.
• West Virginia: West Virginia is moving forward with a bill that would require salary transparency for employers with 25 or more employees.

Now that we know which states are moving forward with new legislation, let’s discuss how these laws will affect compensation and budgeting.

Impact on Compensation Strategy and Budgeting

The new pay transparency laws are reshaping how organizations approach compensation strategy and budgeting. Employers must adapt to a more transparent system that includes salary ranges in job ads, which can affect recruitment, retention, and overall compensation management.

As these laws continue to spread across states, businesses must rethink how they manage pay and plan their budgets. Here are the main impacts on compensation strategy and budgeting:

• Salary Range Adjustments: Employers must ensure that salary ranges are competitive and in line with the market, which may lead to adjustments in pay scales.
• Pay Equity Considerations: Pay transparency laws highlight any disparities in employee compensation. Companies may need to address pay gaps and ensure fairness across the board.
• Budgeting for Salary Increases: Employers will need to plan for potential increases in compensation as they align pay ranges with transparency standards. This requires more detailed budgeting.
• Impact on Recruitment: Salary transparency can influence the hiring process, as candidates will have a clearer understanding of compensation ranges. Employers may need to rethink their hiring approach to attract the best talent.
• Employee Expectations: Transparency may raise employee expectations for pay raises and promotions. Companies will need to manage these expectations and ensure internal equity.
• Administrative Costs: Managing salary transparency laws may increase administrative tasks, such as updating job ads, tracking salary data, and handling employee queries. This can add costs to the HR function.
• Legal and Compliance Risks: Employers will need to invest in compliance systems to track and report salary information accurately, reducing the risk of legal challenges or penalties.

Adapting to these new requirements is essential for shaping effective compliance strategies across departments.

Compliance Strategies for Multi-State Employers

Multi-state employers face the challenge of complying with varying pay transparency laws across different jurisdictions. These companies must be proactive in ensuring compliance to avoid legal risks and maintain consistency in their compensation practices. Adapting to multiple state laws can be complex, especially when handling remote and distributed teams.

Here are some strategies that can help multi-state employers stay compliant:

• Centralized Compliance Management: Establish a central system to track all applicable state and local pay transparency laws. This ensures that job ads, salaries, and benefits are in line with the most recent regulations.
• Regular Audits: Conduct regular audits of compensation practices to ensure they comply with the pay transparency laws in all states where the company operates. This includes reviewing job postings and employee pay data.
• Employee Communication: Clearly communicate pay transparency policies to employees across different locations. Ensure employees are aware of their rights and how salary ranges are determined.
• Hiring and Promotion Transparency: Apply salary transparency principles to both job postings and internal promotions. Ensure that compensation ranges for promotions or new hires are available to all employees.
• Use of Technology: Invest in tools and HR software that help track salary data, manage compensation adjustments, and ensure compliance across multiple jurisdictions. 
• State-Specific Compliance Experts: Consult legal experts or hire compliance officers with expertise in specific state regulations. This will help your company stay updated on any changes in state laws.
• Flexible Compensation Structures: In states with unique or more stringent pay transparency requirements, create flexible compensation structures that can be adjusted to meet those requirements while maintaining internal equity.

To further support compliance, let’s now turn to best practices for HR and compliance teams.

Best Practices for HR and Compliance Teams

As HR and compliance teams adapt to the new pay transparency laws, it's crucial to implement best practices that ensure consistent compliance. These best practices help reduce the risk of non-compliance and foster a transparent and equitable pay structure within the organization.

Here are some best practices for HR and compliance teams to follow:

• Develop Clear Compensation Policies: Create and communicate clear pay transparency policies that outline how salaries are determined and the process for adjusting compensation.
• Consistent Job Descriptions: Ensure job descriptions across departments and teams are consistent and clearly reflect the responsibilities and compensation ranges for each role.
• Regular Training for HR and Recruiting Teams: Provide training for HR, recruiting managers, and hiring teams to ensure they understand the importance of pay transparency and how to implement it.
• Monitor Compliance with Regular Audits: Conduct periodic audits of compensation practices to ensure alignment with state laws and internal pay equity policies.
• Update Compensation Structures Regularly: Regularly review and adjust your pay structures to ensure they remain competitive and aligned with new laws and market shifts.
• Document and Retain Compensation Data: Keep detailed records of job ads, salary ranges, pay decisions, and internal promotions for at least the duration required by law.
• Engage Employees with Transparent Communication: Be transparent with employees about the company’s compensation practices and how salary decisions are made. This will build trust and reduce confusion.
• Work with Legal and Compliance Experts: Collaborate with legal experts to stay informed about changes in pay transparency laws and ensure your company remains compliant across all regions.

With these best practices in place, let’s look at a tool that can help you maintain compliance and simplify your compensation processes.

CandorIQ: A Unified Platform for Compensation and Headcount Planning

Managing compensation and headcount planning in a multi-state environment can be complex and time-consuming. CandorIQ offers a solution by providing a unified platform to simplify these processes. 

The platform consolidates compensation management, headcount forecasting, and retention planning into one system, helping HR and Finance teams stay compliant while ensuring fairness and transparency.

Here are the key features of CandorIQ:

• Compensation & Payband Builder: Define pay bands by level, location, and department. Apply location-based adjustments and visualize pay distribution across the organization in real-time.
• Compensation Cycle Management: Automate merit and bonus reviews, track budget and raises in real-time, and send reminders for approvals through email or Slack integration.
• Candidate Offers: Provide candidates with precise total compensation details, including salary, equity, bonuses, and benefits. Include growth projections to enhance clarity and transparency.
• Headcount Scenario Planning: Model future organizational charts and view their financial implications. Compare multiple hiring scenarios and ensure they align with budget thresholds.
• Headcount Requests & Approvals: Create and approve new hire requests with job details, rationale, and budgets, integrating with ATS and finance systems for efficient workflows.
• Workforce Management: Track open roles, promotions, and attrition rates. Align actual headcount versus plan, and build custom dashboards for HR, Finance, and executive teams.
• AI Agent: Get compensation recommendations based on benchmarks and peer data. Use natural language to analyze gaps and forecast needs, helping decision-making at scale.

By integrating CandorIQ into your HR and compensation workflows, your team can ensure compliance with pay transparency laws and improve workforce planning. The platform’s real-time collaboration capabilities and data-driven insights help keep your compensation strategy aligned with business goals.

Conclusion

The rise of pay transparency laws across various states in the USA presents challenges and opportunities for HR teams and employers. Adopting the requirements can be complex, but with the right strategies and tools, companies of team size between 50–5,000 employees can stay compliant while building a fairer, more transparent compensation structure.

To ensure your compensation strategy is aligned with pay transparency laws and to improve your workforce planning, consider using CandorIQ. With its unified platform, CandorIQ simplifies compensation management and headcount forecasting, helping your team stay ahead of legal changes.

Book a demo today to see how CandorIQ can help your organization stay compliant, improve pay equity, and simplify compensation management.

FAQs

Q: What are the main compliance challenges for companies with remote teams under these pay transparency laws?

A: Remote teams complicate compliance because pay transparency laws vary by state. Companies need to track where each employee is located, even if they work remotely, to ensure they meet the specific requirements of each jurisdiction. This can be difficult for businesses with employees across multiple states.

Q: What penalties do companies face if they fail to comply with pay transparency regulations?

A: Penalties for non-compliance vary by state but can include fines ranging from a few hundred to several thousand dollars per violation. In some cases, companies may face lawsuits or be required to pay civil claims. The specific penalties depend on the state and the nature of the violation.

Q: How do pay transparency laws impact internal promotions?

A: Many states require salary range disclosures for internal promotions as well as for new hires. This ensures transparency within the organization and helps employees understand the compensation trajectory for different roles. Companies must update internal processes to include salary transparency for promotions.

Q: Do pay transparency laws apply to all businesses?

A: No, the applicability of pay transparency laws depends on the size of the company and the state where the employees work. Some rules apply to businesses with as few as one employee, while others may only affect companies with a certain number of workers, often 10 or more.

Q: Will these laws impact the hiring process?

A: Yes, with pay ranges required in job ads, candidates will have more clarity about potential salaries upfront. This could lead to changes in how companies approach salary negotiations, potentially attracting a different pool of applicants who value transparency.

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