Compliance Conundrum: Keeping Up With Pay Transparency Laws

Over the last couple of years, we have seen the growth of pay transparency laws across the country. There are approximately fifteen states now with pay transparency laws in some form requiring employers to disclose salary ranges or hourly pay in job postings or to current employees in certain circumstances.

Five states have pay transparency laws going into effect in 2025 with another state’s pay transparency law currently on the Governor’s desk for signature.

Illinois and Minnesota Pay Transparency Laws: Effective Jan. 1, 2025

Illinois and Minnesota’s pay transparency laws both went into effect on January 1, 2025. In Illinois, employers with more than 15 employees must include the pay scale and benefit information in job postings. In addition, within 14 days after an external job posting, the employer must announce, post, or in some manner make known to all current employees all opportunities for promotion.

In Minnesota, their pay transparency law applies to employers with 30 or more employees in the state which is a bit different than other state’s pay transparency laws. Employers in Minnesota must include the starting salary range and a description of benefits (including health and retirement benefits) and other compensation in job postings.

Three Pay Transparency Laws: Effective Summer and Fall 2025

Three states have pay transparency laws going into effect this summer and fall. New Jersey’s pay transparency law goes into effect on June 1, 2025 and applies to employers with 10 or more employees. Employers must disclose in job postings the hourly wage or salary range and a listing of benefits and other compensation available for the position within the first 12 months of employment. This applies to postings for promotions, new jobs, and transfer opportunities advertised either externally or internally.

Vermont’s pay transparency law becomes effective on July 1, 2025. Employers with 5 or more employees (one of whom works in Vermont) must disclose the compensation or range of compensation in each job advertisement. Employers do not need to disclose benefit information or discretionary compensation in their job postings.

Later this fall on October 29, 2025, Massachusetts pay transparency law will be effective and employers with 25 or mor employees will need to include in job postings the wage range for the position. Employers must also provide the same information to an internal employee who is offered a promotion or transfer to a new position with different job responsibilities.

Potential Pay Transparency Law in Virginia

Finally, the latest state with a potential pay transparency law is Virginia. The legislature passed SB 1132 which would require employers to provide a wage or salary range in each public and internal posting for each job, promotion, transfer, or other employment opportunity.

Governor Youngkin has until March 24^th to sign, amend, or veto the bill. As a side note, the last time a pay transparency law was on the Governor’s desk, he vetoed it. Employers in Virginia should keep an eye out for the final action related to this bill.

Conclusion

To simplify your management of the pay transparency laws, consider GovDocs Minimum Wage, which provides pay transparency requirements at the state and city level where required. Plus, you’ll stay up to date with this continuing trend in employment law.