Pay transparency — the requirement to disclose salary ranges in job postings and, in some cases, to share compensation information with current employees — has moved from a progressive policy idea to binding law across a significant portion of the United States.
If you are hiring in any of the states or cities below, you need to understand what is required, when it applies, and what the penalties are for non-compliance. This guide covers the current landscape as of 2026.
States with active pay transparency requirements
### California
California requires employers with 15 or more employees to include pay scale information in all job postings. Employers must also provide current employees with the pay scale for their position upon request. Civil penalties range from $100 to $10,000 per violation. California also requires employers with 100 or more employees to submit annual pay data reports to the Civil Rights Department.
### Colorado
Colorado's Equal Pay for Equal Work Act applies to all employers with at least one employee in the state — including remote workers. Every job posting must include the hourly rate or salary range and a general description of benefits. The law also requires employers to notify current employees of promotion opportunities before filling them. Penalties start at $500 per violation.
### New York State
New York State requires employers with four or more employees to list a good-faith salary range in all job postings. This applies to jobs that will be performed in New York or that can be performed remotely from New York. Employers must also keep records of job descriptions and pay ranges for the duration of employment plus three years.
### New York City
New York City has its own pay transparency law with stricter enforcement. The NYC Commission on Human Rights actively investigates complaints and has issued significant fines for non-compliance, including to businesses that listed unreasonably wide salary ranges as an attempt to satisfy the letter of the law without actually disclosing meaningful information.
### Washington State
Washington requires salary ranges in job postings for employers with 15 or more employees. Postings must also include a general description of benefits and other compensation. Washington's Department of Labor and Industries can investigate complaints and issue civil penalties.
### Massachusetts
Massachusetts implemented its pay transparency law effective October 2025. Employers with 25 or more employees must include pay range information in job postings and provide the range to current employees upon request. The Attorney General's office enforces the law with penalties up to $25,000 for repeat violations.
### Illinois
Illinois requires employers with 15 or more employees to include pay scales and benefit descriptions in job postings. The law, which took full effect in 2025, also requires employers to announce promotion opportunities to current employees and maintain posting records for five years.
### Other active jurisdictions
Additional pay transparency requirements are in effect in **Connecticut**, **Nevada**, **Rhode Island**, **Maryland**, **Hawaii**, and several municipalities including **Jersey City, NJ**, **Cincinnati, OH**, and **Toledo, OH**. Requirements vary significantly — some cover only employers above a certain size, some apply only to jobs physically performed in the jurisdiction, and some also cover remote roles.
What pay transparency laws typically require
While the specifics vary, most active laws share a common set of requirements:
**Salary range disclosure in job postings.** The range must be set in good faith — posting $0 to $1,000,000 to technically comply will not pass scrutiny. Regulators and courts look for ranges that reflect what the employer actually intends to pay.
**Response to employee requests.** Most laws require employers to provide the pay range for a current employee's position upon request. Some also require this disclosure before or during the interview process for job candidates.
**Internal promotion notifications.** Colorado and Illinois require employers to notify current employees of open positions before or at the same time they are posted externally, giving internal candidates an opportunity to apply.
**Record retention.** Several states require employers to retain job postings and compensation records for defined periods, typically three to five years.
Common compliance mistakes
**Posting ranges that are too wide.** Regulators have targeted employers who list ranges spanning $50,000 or more as bad-faith compliance. Ranges should reflect a real pay band for the role.
**Forgetting remote roles.** If a job can be performed remotely from a covered state, the posting typically needs to comply with that state's law — even if your company is headquartered elsewhere.
**Missing city-level requirements.** State law may not cover your business by headcount, but a city ordinance might. New York City, Cincinnati, and other municipalities have their own rules.
**Failing to update existing postings.** Pay transparency laws generally apply to all active postings, not just new ones. If you have evergreen job listings, they need to be reviewed.
The pay equity dimension
Pay transparency laws are closely connected to pay equity enforcement. When employees can see salary ranges, pay gaps become visible — and regulators expect employers to be able to explain them. Several states now require regular pay equity audits and have begun using salary data reports to identify disparities for investigation.
This is not a future problem. Businesses that implement pay transparency without addressing underlying compensation inconsistencies are creating disclosure requirements they may not be ready to defend.
How a PEO helps with pay transparency compliance
A PEO with multistate experience monitors pay transparency requirements across jurisdictions and can help you build compliant job posting templates, conduct compensation benchmarking, and maintain the records regulators expect to see.
For businesses posting jobs across multiple states, the complexity of tracking different thresholds, exceptions, and record-keeping requirements by jurisdiction is significant. A PEO absorbs that complexity as part of its core function.
Find PEO companies in your state
If your current PEO has not proactively addressed pay transparency, PEO Alternatives can help you compare providers and find one that stays ahead of compliance changes.