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In 2023, pay transparency entered the mainstream United States political conversation. In 2025, it became a compliance standard for many American businesses and is required by law in several states and cities.
The legislative momentum on compensation equity and transparency has shifted dramatically this year, moving beyond simple bans on salary history inquiries to aggressive, affirmative mandates requiring the public disclosure of compensation ranges. With major economic hubs implementing strict new statutes and a fresh wave of legislation passing in states like Delaware and Maine, the patchwork of local laws is rapidly becoming a national blanket of regulation.
Below is a summary of the latest state-level laws shaping compensation transparency requirements across the U.S.
In September 2025, Delaware joined the growing list of jurisdictions mandating salary disclosure with the passage of House Substitute No. 2 to House Bill 105.
While the state has provided a generous ramp-up period (enforcement does not begin until September 2027), the law represents a significant shift for the region. Once effective, the statute will require employers with 25 or more employees to disclose the pay range and a general description of benefits in every job posting, as well as protect every employee's right to discuss wages without fear of retaliation.
The Frances Perkins Workplace Equity Act in The Bay State officially took effect on October 29, 2025, mandating that employers with 25 or more employees must include pay ranges in all job postings and, crucially, provide these ranges to current employees who are offered a promotion or transfer.
The law effectively forces organizations to have a clear, defensible compensation philosophy ready for both external candidates and internal staff.
New Jersey’s pay transparency statute (S2310) became effective on June 1, 2025, applying to employers with at least 10 employees. Beyond the standard requirement to post minimum and maximum salary ranges, the New Jersey law introduces a unique retention component: employers must make "reasonable efforts" to announce promotional opportunities to their existing workforce prior to making a promotion decision.
Illinois enacted substantial amendments to the Equal Pay Act effective January 1, 2025, requiring employers with 15 or more employees to include pay scales and benefits descriptions in job postings.
Critically, the requirements extend to any position that is physically performed in Illinois or any remote role that reports to a supervisor based in Illinois. This extraterritorial reach means that many multistate employers must comply with Illinois standards even for a distributed workforce.
Vermont solidified its commitment to wage equity with legislation that took effect on July 1, 2025. The law applies to nearly all employers with five or more employees, requiring "good faith" wage ranges in advertisements for any specific job opening.
As of January 1, 2025, Minnesota law requires employers with 30 or more employees to list a starting salary range or a fixed pay rate in all job postings, as well as listing out a general description of benefits.
While Ohio has not yet passed a statewide mandate, the city of Cleveland took decisive local action by passing Ordinance No. 104-2025 in October 2025. This local ordinance applies to employers with 15 or more employees operating within city limits, requires the inclusion of pay ranges in job postings, and strictly prohibits employers from asking candidates about their compensation history.
Maine took a slightly different approach to pay equity in September 2025 by passing the "Show-Up Pay" law. While not a job posting transparency law in the traditional sense, it addresses wage unpredictability, a key driver of income inequality for hourly workers. Effective September 24, 2025, the law mandates that employers with more than 10 employees must compensate workers for at least two hours of work if their shift is cancelled or reduced without sufficient notice.
House Bill 560 in Pennsylvania, introduced in February 2025, mirrors the standards set by its neighbors: the bill aims to require employers with 15 or more employees to disclose pay ranges during job offers.
A unique feature of the proposal is an annual notification requirement, where employers would need to proactively inform current employees of the pay range for their specific position.
Michigan’s legislature has been debating a suite of equity bills throughout the 2025 session, including Senate Bills 6 and 7. These proposals range from mandating the disclosure of salary ranges in job postings to requiring employers to provide up to three years of wage history upon request.
The legislative activity of 2025 confirms that pay transparency is a permanent fixture of the American labor market. The variance in these laws—from Vermont’s five-employee threshold to Delaware’s 25-employee requirement—complicates the compliance landscape for multistate organizations.
Employers can no longer rely on a reactive strategy; to stay compliant, companies should look into conducting a comprehensive internal pay equity audit to identify and remediate disparities before mandatory disclosures force them to reveal those discrepancies.
As candidates increasingly expect salary data upfront, organizations that embrace transparency not just as a legal obligation, but as a cultural value, will likely find themselves with a distinct advantage in the war for talent.
Legislative expansion is expected to continue, with potential federal-level activity and more states aligning with pay equity initiatives.
The regulatory landscape is shifting fast for HR professionals. Join us at DISA Global Solutions' S3 Conference (Screening, Safety, & Strategy) for exclusive sessions dedicated to navigating the critical employment law changes coming in 2026.
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DISA Global Solutions aims to provide accurate and informative content for educational purposes only and does not constitute legal advice. The reader retains full responsibility for the use of the information contained herein. Always consult with a professional or legal expert.
December 01, 2025
5
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