Pay Transparency Laws:
What Employers Need to Know
Updated March 2026
Pay Transparency Laws:
Introduction
Pay transparency has remained a major employment law trend in recent years.
Driven by efforts to reduce pay inequities and the #MeToo movement, many jurisdictions have adopted pay transparency laws. While these laws can differ in their requirements, the most well-known require employers to include pay ranges in job postings. However, job posting requirements represent only one aspect of pay transparency that employers must monitor.
This guide, updated in March 2026, covers the following:
- Pay transparency laws
- Salary history bans
- Maintaining compliance
We will also discuss two recent updates to pay transparency laws in:
Notably, the number of states and local jurisdictions with pay transparency laws, or are such laws, continues to grow. To remain compliant, employers must understand and follow current laws while also keeping an eye on new developments in this area.
Table of Contents
What are Pay Transparency Laws?
Pay transparency laws require employers to disclose information about employee compensation, either to the employees themselves or to the public. The specific requirements of these laws can vary depending on the jurisdiction, but they generally aim to promote fairness and reduce pay disparities based on factors like gender, race, and ethnicity.
Depending on the jurisdiction, these laws require employers to:
- Provide applicants the salary range for a posted position at a specified point during the hiring process
- Provide employees salary range upon request, when changing jobs, or upon hire
- Include salary range in job postings
Pay Transparency Laws by State
What are Salary History Bans?
Salary history bans are adjacent to pay transparency laws and generally prohibit employers from asking job applicants about their pay history. Again, these laws were put in place to address race and gender inequalities.
Salary history bans also vary by jurisdiction and may bar employers from requesting salary history altogether, prohibit salary history inquiries before providing an offer, or ban the use of salary history to set pay.
Employers should further note that Michigan and Wisconsin are two states that prohibit jurisdictions from enacting salary history bans.
U.S. states with salary history bans for private employers include:
Alabama, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Missouri (only Kansas City), Nevada, New Jersey, New York, Ohio (only Cleveland, Cincinnati, Columbus, and Toledo), Oregon, Pennsylvania (only Philadelphia and Lehigh County), Rhode Island, Vermont, and Washington.
Ban the Box
Another compliance concern for hiring practices involves what is often referred to as “ban the box” or fair chance laws. Generally, these laws bar employers from asking about an applicant’s criminal history until a later point during the application or hiring process.
Ban the box laws often:
- Limit what employers can ask job applicants before an initial interview
- Set a point in the application process when employers may ask about an applicant’s criminal history
- Prohibit how far in the past an employer may inquire about an applicant’s criminal history
- Prevent ads for jobs from excluding those with a criminal history
Most ban the box laws include exceptions for certain types of professions – those that require inquiries under other state or federal laws, or jobs that care for minors or vulnerable adults, for example.
Pay Transparency Update No. 1
California state legislature amended its pay transparency law (California SB 642), effective Jan. 1, 2026, to include a new definition of “pay scale” and “wages.” It also extended the statute of limitations for violations of the law to three years.
Pay Transparency Update No. 2
Late in 2025, Delaware enacted a new pay transparency law that takes effect Sept. 26, 2027 (Delaware HB 105). The law requires employers with more than 25 employees to include pay ranges, a general description of benefits, and other compensation in job postings for positions located in Delaware or remote roles offered by Delaware-based employers.
Maintaining Compliance with Pay Transparency Laws
Because pay transparency laws vary by jurisdiction and continue to evolve, maintaining compliance can be challenging for employers—particularly those that operate in multiple states or hire remote workers. Employers should take proactive steps to understand how these laws apply to their hiring and compensation practices.
In closing, here are a few tips for maintaining compliance:
- Know and understand the variety of pay transparency laws
- Conduct a pay audit – consider doing so under attorney-client privilege
- Identify and resolve any pay inequities
- Clearly define pay ranges for each position
- Make sure there are clear job descriptions for your positions
- Train hiring managers and others in HR on pay transparency
Conclusion
Notably, the number of states and local jurisdictions with pay transparency laws, or amendments to current pay transparency laws, continues to grow. There are several jurisdictions in the U.S. that have considered pay transparency laws and salary history bans as of late. To remain compliant, employers must understand and follow current laws while also keeping an eye on new developments in this area.
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