It’s the law in some cases, but compliance is only the beginning. Adopting pay transparency may also help you improve pay equity, build trust with your employees and establish yourself as an employer of choice.
In the latest effort to address unequal pay, several states and local jurisdictions have enacted pay transparency laws that require employers to disclose a wage or wage range to prospective candidates and/or current employees. Depending on the law, disclosure occurs upon request, at a certain point in the hiring process or publicly in a job posting.
As states and local jurisdictions continue to pass new legislation, pay transparency will become more critical. Select a location to see the pay transparency laws in your area.
Upon request, all employers must:
An employer with 15 or more employees must include the pay scale for a position in any job posting. If the employer engages a third party to announce, post or publish a job posting, the employer must provide the pay scale to the third party. The third party is required to include the pay scale in the job posting.
In each posting for each job opportunity, all employers* must disclose:
Employers must make reasonable efforts to provide, within 30 days of selection, information to certain employees about the candidate selected.
*Through July 1, 2029, employers physically located outside of Colorado with fewer than 15 employees working remotely in Colorado are only required to provide notice of remote job opportunities.
All employers must:
Beginning June 30, 2024, employers must provide the minimum and maximum projected salary or hourly pay in all job listings and position descriptions advertised.
In stating the minimum and maximum salary or hourly pay for the position, employers must extend the range from the lowest to the highest salary or hourly pay that they in good faith believe at the time of the posting they would pay for the advertised job, promotion or transfer opportunity.
Before the first interview, employers must also disclose to prospective employees the existence of health care benefits available to the employee.
Employers with 50 or more employees must disclose in job listings an hourly rate or salary range that reasonably reflects the actual expected compensation for the position.
The requirement doesn’t apply to job listings for positions that are internal transfers or promotions within a current employer.
Effective January 1, 2025, employers with 15 or more employees must include in any job posting the pay scale and benefits for the position. The requirement for job postings only applies to positions that:
Prior to October 1, 2024
Upon request, all employers must provide an applicant with the wage range for the job for which the applicant applied.
On or after October 1, 2024
In each public or internal posting for each position, employers must disclose the wage range and general description of benefits and any other compensation for the position. If a posting wasn’t made available to the applicant, the employer must disclose the required information to the applicant: 1) before a discussion of compensation is held and 2) at any other time when requested by the applicant.
Beginning July 31, 2025, employers with 25 or more employees in Massachusetts must:
Pay range is defined as the annual salary range or hourly wage range that the employer reasonably and in good faith expects to pay for such position at that time.
Effective January 1, 2025, Minnesota employers with 30 or more employees must provide a minimum and maximum annual salary range or hourly range of compensation, or a fixed pay rate, on job postings. The range must be based on an employer’s good faith estimate and cannot be open-ended. Covered employers must also provide a general description of benefits and other compensation offered, including health and retirement benefits.
The law covers any posting made electronically or in print with desired qualifications for an available position intended to recruit applicants, including postings on the employer’s behalf by recruiters and other third parties.
All employers must:
Jersey City, New Jersey
Employers with five or more employees that advertise by any means to provide notice of employment opportunities, transfers or promotions must disclose a minimum and maximum annual salary or hourly wage in the posting or advertisement.
Statewide
Employers with four or more employees must, when advertising a job, promotion or transfer opportunity, state the minimum and maximum annual salary or hourly wage for the position. For positions compensated solely on a commission basis, employers can comply with the law by including a general statement that compensation will be based on commissions. Employers must also disclose the job description for the position, if one exists.
The law applies to advertisements for positions that will physically be performed, at least in part in New York, as well as jobs that will physically be performed outside of New York but report to a supervisor, office, or other work site in New York.
Albany County, New York
Employers with four or more employees are required to state the minimum and maximum salary or hourly wage for a position when advertising a job, promotion or transfer opportunity. This requirement does not apply to temporary jobs at a temporary help firm.
Ithaca, NY
Employers with four or more employees whose standard work locations are in the city of Ithaca must include the minimum and maximum hourly or salary compensation in each posting for a job, promotion or transfer opportunity. The ordinance does not apply to job advertisement for temporary employment at a temporary help firm.
New York City, New York
Employers with four or more employees (including independent contractors but excluding temporary employees hired through temporary help firms) are required to disclose the expected salary range for a position on internal and external job listings. Positions that cannot or will not be performed, at least in part, in the city of New York are excluded.
Cincinnati, Ohio
Employers with 15 or more employees within Cincinnati must, upon request, provide the pay scale for a position to an applicant who has received a conditional offer of employment.
Toledo, Ohio
Employers with 15 or more employees within Toledo must, upon request, provide the pay scale for a position to an applicant who has received a conditional offer of employment.
All employers must:
Effective July 1, 2025, employers with five or more employees must disclose in job listings an hourly rate or salary range that reasonably reflects the actual expected compensation for the position. The requirement applies to job listings and advertisements for positions that are external, or internal transfers or promotions within a current employer.
Specific role requirements
Employers must take the following actions for these job openings:
Employers with 15 or more employees must, in each job posting for each job opening, disclose the wage scale or salary range and a general description of all benefits and other compensation.
Upon request of an employee offered an internal transfer to a new position or promotion, the employer must provide the wage scale or salary range for the employee's new position.
Understand the concepts, laws and expectations.
Article
Webinar
Article
Video
Article
Article
PEOPLE ANALYTICS
We get it – not everyone’s compensation structure is ready for prime time. Before you publicly reveal pay or pay ranges, you may need to consult counsel and conduct a pay audit with pre-defined goals. That way you can determine if you’re paying people at market value and address potential pay inequality.
ADP’s people analytics can help you quantify pay gaps by gender, race and ethnicity, and estimate the costs to close them. Included benchmark data allows you to compare compensation by industry or geographic region and establish competitive pay ranges.
COMPENSATION MANAGEMENT
Make more informed, equitable decisions about compensation while minimizing the need for HR assistance. With ADP’s compensation management, you’ll have instant access to modeling tools, interactive worksheets and data, including pre-defined guidelines, salary ranges and more. You can even make ad hoc changes to compensation and effective dates via a self-service tool.
MEET OUR CLIENTS
We really like the salary benchmarking data tool for our annual review of employee compensations and our CEO is also a big fan. If there’s a new role that we are hiring for we can benchmark what that salary might cost us and see what different regions we can hire in to keep within our budget.
Watch Testimonial See case study
Suzanne Harris Vice President of Human Resources, NexusTek
MEET OUR CLIENTS
The ADP Compensation Management module is, by far, the biggest time saver that we have implemented. Our previous process literally took weeks to roll out and complete. Now, we can accomplish it in about day. That is so much time saved. The compensation module has been a life changer.
Watch Testimonial See case study
Theresa Allen Payroll Specialist/HR administrator, Home Federal Savings Bank
MEET OUR CLIENTS
The best decisions that we can make as an organization are ones that are based on solid data or information that our employees are giving back to us. So, in addition to the feedback that we continue to collect from our employees, having data from ADP DataCloud with reporting helps us to make sure that we’re focused on the right things.
Laura Sorensen Chief People Officer, First Watch Restaurants Inc.
MEET OUR CLIENTS
Now whenever I need to, I can easily show our executives the retention rate, the turnover rate, the average comp ratio of our key positions and more. That has translated into a lot of proactive decision making with respect to what we want to do with our overall compensation strategy.
Christine Ellinger Chief Human Resources Office & Senior Vice President, Central Trust Bank