Which States and Cities Have Wage Transparency Laws in 2024?

The call for equitable pay has been echoing for some time. While some states and cities had previously enacted pay equity statutes, they’re now embracing a new tactic to ensure fair pay: wage transparency.

Wage transparency is the practice of openly sharing information about wages and salaries within a company or organization. This can include the disclosure of pay ranges for specific job positions, the methods of determining salaries, and sometimes the actual salaries of individual employees.

Here’s a summary of why legislatures are enacting pay transparency laws and a list of states and localities that have enacted these laws.

Why Does Wage Transparency Matter?

Pay transparency supports the principle that employees should be paid equally for performing the same or similar work, regardless of gender, race, or other factors that historically have led to wage discrimination. These laws are designed to ensure that all employees have equal access to advancement opportunities and to prevent past pay disparities from affecting future earnings. Proponents of these laws believe that increasing wage transparency in the hiring process can close the gender pay gap, reduce discrimination, and promote fairer compensation practices.

Further, by requiring employers to disclose pay scales, job applicants can have a better sense of what to expect in terms of pay before they apply, negotiate salaries more effectively, and make more informed career decisions.

States With Wage Transparency Laws

Here is a summary of wage transparency laws recently enacted around the country.

California Wage Transparency Law

In January 2023, California amended its Equal Pay Act to require employers with at least 15 employees and at least one employee located in California to share pay scales in job postings. The posting need not be for a job that is performed in California; the law applies to remote work positions too.

The law also requires employers to share salary and wage information with current employees upon request. Employers are not permitted to ask for a job applicant’s salary history.

Penalties for failing to disclose pay scales can be up to $10,000 per violation.

Additionally, each year, California employers with at least 100 employees must submit a report to the California Civil Rights Department that details the median and mean hourly rate for each race, ethnicity, and sex for each job category for employees and contractors. Penalties for failing to comply with these reporting requirements can be up to $200 per employee.

Colorado Wage Transparency Law

The Colorado Equal Pay for Equal Work Act requires employers to include compensation in job postings, to notify employees about opportunities for promotion, and to maintain job description and wage rate records as of January 1, 2021.

Employers must include in each job posting the compensation for the job or a range of compensation; a description of any bonuses, commissions, or other compensation; and a general description of benefits offered, including healthcare, retirement benefits, paid days off, and any tax-reportable benefits.

The law applies to any employer that employs at least one person in Colorado. It does not cover an employer with no employees in the state, even if they consider applicants from Colorado or ultimately hire someone in Colorado.

Employers may be fined between $500 and $10,000 per violation.

Connecticut Wage Transparency Law

Connecticut’s wage transparency law went into effect on October 1, 2021. The law requires employers located in Connecticut with at least one employee in the state to disclose to applicants and employees the salary ranges for positions upon request or before an applicant receives an offer. The law covers applicants and employees who live outside of Connecticut who work remotely or who apply for remote work.

Violation of the law can result in compensatory damages, punitive damages, and attorneys’ fees and costs.

Hawaii Wage Transparency Law

As of January 1, 2024, employers with 50 or more employees in Hawaii must disclose salary ranges or hourly rates in job postings. The law carves out exceptions for internal transfers and promotions plus public jobs where the compensation is set through collective bargaining.

The law permits job applicants and current employees to file a complaint with the Hawaii Civil Rights Commission.

Illinois Wage Transparency Law

Illinois recently enacted a law amending its Equal Pay Act of 2003. Beginning January 1, 2025, employers with 15 or more employees must include wage scales or the salary range for roles in job postings. They must also provide a general description of benefits and any other compensation, including bonuses, stock options, or other incentives the employer reasonably expects in good faith to offer for the position. If employers post jobs electronically, they may include a link in the posting to a public page with the pay and benefits information. If a job is not posted, employers must share information about pay and benefits before discussing any compensation and at the applicant’s request.

Employers must also notify current employees of an external job posting within 14 calendar days for any job physically performed, at least in part, in Illinois or any job that reports to a supervisor, office, or work site in Illinois.

Note that this law applies to third-party vendors who repost job openings. Third parties may be found liable unless they can show that the employer did not provide the information.

The law gives employers 14 days to cure a first violation. Thereafter, employers are subject to fines of up to $500 for the first offense, $2,500 for the second offense, and $10,000 for subsequent offenses.

Maryland Wage Transparency Law

Starting October 1, 2024, an update to the Maryland pay transparency law goes into effect. The updated Equal Pay for Equal Work Law will require employers to disclose salary ranges on job postings. Previously, the law required employers to provide a wage range for a position upon a job applicant’s request and prohibited employers from retaliating against applicants based on this request.

This pay transparency law also bans employers from asking applicants about their salary history and from using their history to screen applicants for employment or determine an applicant’s wages. Once an applicant is hired, the employer may ask for the information to support a request for higher wages.

Initial violations of the law can lead to a fine of $300 per applicant per violation. Additional violations increase to $600 per applicant.

Minnesota Wage Transparency Law

Starting January 1, 2025, Minnesota employers with 30 or more employees at one or more sites in Minnesota must disclose salary ranges or pay rates, benefits, and other compensation on electronic and hard-copy job postings. Employers must make a good-faith estimate in disclosing the salary range. Third-party recruiters posting on behalf of Minnesota employers are also subject to this law.

The Department of Labor and Industry and the Minnesota Attorney General may enforce violations of this law.

Nevada Wage Transparency Law

Nevada enacted its wage transparency statute on October 1, 2021. It requires employers to disclose salary or wage ranges to job applicants after an interview. They must also provide this information to current employees who apply for or are offered a promotion or transfer. Employers also cannot ask for an applicant’s wage or salary history in determining their pay rate.

Businesses can be fined up to $5,000 per violation.

New York Wage Transparency Law

As of September 17. 2023, New York employers with at least four employees plus employment agencies must include the minimum and maximum annual salary or range of hourly wages for each advertised job, promotion, or transfer opportunity. If the position is paid on commission, the employer must only disclose that the compensation is commission-based.

The law also prohibits employers from asking applicants about their salary history and includes an anti-retaliation provision.

Employers can be fined up to $1,000 for the first violation of this law, $2,000 for the second violation, and $3,000 for any subsequent violations.

Rhode Island Wage Transparency Law

A wage transparency law went into effect in Rhode Island on January 1, 2023. The law, which also addresses pay equity, requires employers to share wage ranges for current or prospective roles upon the request of an applicant or current employee.

Employers may be fined $1,000 for a first violation, $2,500 for a second violation within five years, and $5,000 for two or more violations within a seven-year period.

Washington Wage Transparency Law

Washington State’s Equal Pay and Opportunities Act took effect on January 1, 2023. It requires employers to disclose the compensation for each job opening in every job posting. Specifically, employers must share the wage scale or salary range, including the starting range and general range, and describe all benefits and other compensation offered, including bonuses, commissions, and stock options. The benefits description must address healthcare, retirement options such as 401(k), vacation and paid time off, paid holidays, and any other benefits that are reportable under tax laws. The disclosure should also include paid sick time if the employer’s policy is more generous than what’s required by state or local laws.

This pay transparency law applies broadly to employers both inside and outside Washington if they recruit Washington-based employees, even if they are working remotely. An employer cannot avoid becoming subject to the law by refusing to hire applicants from Washington state.

Employers can be fined $500 for each violation of the act or up to $1,000 or 10% of the damages, whichever is greater, for repeated violations.

Washington, D.C., Wage Transparency Law

As of June 30, 2024, employers in Washington, D.C., must disclose the minimum and maximum salary or hourly pay in every job posting. Employers must also share details about healthcare benefits with applicants before the first interview.

The Attorney General may investigate alleged violations and may bring an action for statutory penalties and attorneys’ fees and costs.

Cities and Localities With Wage Transparency Laws

Several cities have also adopted wage transparency laws.

• Cincinnati, Ohio: Employers must provide the pay range for a job upon an applicant’s request and cannot ask an applicant for their salary history. Job applicants may sue for compensatory damages and legal fees for violations of this law.
• Ithaca, New York: All employers with four or more employees must publish the salary range for each new job.
• Jersey City, New Jersey: All employers with four or more employees and with their principal place of business in Jersey City must post the salary range for every job posting. Violations are punishable by a fine of up to $2,000 or imprisonment or 90 days of community service.
• New York City, New York: Certain New York City employers with at least four employees must disclose salary ranges in job advertisements for jobs performed in the city. An initial violation will not incur a fine if it is remedied within 30 days. Any violations not remedied and subsequent violations may lead to a penalty of up to $250,000.
• Toledo, Ohio: Toledo employers with 15 or more employees must disclose the pay range for a job upon an applicant’s request and cannot ask job applicants about their salary history. A job applicant may file a lawsuit for compensatory damages and legal fees for any violations.

What Employers Should Do to Comply With Wage Transparency Laws

Employers must stay on top of the growing list of states and localities with pay transparency laws and take steps to comply with them, including modifying job postings and job applications. A number of states are considering pay transparency legislation, including Alaska, Kentucky, Maine, Massachusetts, Michigan, Missouri, Montana, New Jersey, Oregon, South Dakota, Vermont, Virginia, and West Virginia. We will monitor these state legislatures and keep you apprised of any developments.

To discuss what you must post to stay compliant with your state or city’s wage-related labor law posting requirements, get in touch.