The Complete 2026 Pay Transparency Map: Which States Give You a 3.6% Advantage

Introduction: The $3,600 Question Every Job Seeker Should Ask

You’re scrolling through job postings when you spot your dream role. The responsibilities align perfectly with your skills. The company culture sounds amazing. There’s just one problem: no salary listed.

In some states, that’s now illegal. And according to groundbreaking research from the National Bureau of Economic Research, those salary disclosure requirements are doing something remarkable. They’re raising wages for everyone, not just the people applying for new jobs.

Pay transparency laws require employers to disclose salary ranges in job postings or upon request. These regulations vary by state, but they share a common goal: closing wage gaps and promoting fair compensation. The newest data shows these laws are working better than anyone expected.

Research published in November 2025 found that disclosed salaries increased by 3.6% after transparency laws took effect. Even more surprising, actual earned salaries rose by 1.3% across the board, including for incumbent workers who never changed jobs. That means if you’re earning $60,000 in a pay transparency state, you could see an extra $780 annually without lifting a finger.

By the end of this article, you’ll know exactly which states have pay transparency laws, how to use them to your advantage, and what compliance really looks like. Whether you’re negotiating your salary, evaluating job offers, or simply curious about workplace trends, understanding the 2026 pay transparency landscape is your ticket to better compensation.

What Pay Transparency Laws Actually Do (And Why They Matter)

Let’s cut through the complexity. Pay transparency laws are regulations that require employers to share compensation information at specific points during the hiring and employment process. But the specifics vary wildly depending on where you live and work.

Most pay transparency laws require employers to include a good faith salary range in job postings. Some states mandate disclosure in all job advertisements, while others only require sharing pay information when candidates request it. A handful of jurisdictions prohibit employers from asking about your salary history, preventing the practice of anchoring your new pay to what you previously earned.

The Four Core Requirements

Job Posting Disclosures

• Employers must list the minimum and maximum salary or hourly wage they expect to pay
• Ranges should reflect genuine expectations, not meaningless spreads like “$0 to $2 million”
• Some states require disclosure in all job ads, while others only require it for external postings
• Third-party recruiters posting on behalf of employers typically must include the same information

Upon Request Provisions

• Even without posted ranges, employers must disclose pay when applicants or employees ask
• This applies to internal promotions, transfers, and career advancement opportunities
• Timing varies: some states require disclosure before interviews, others after job offers
• Refusal to provide requested information can result in penalties

Salary History Bans

• Many transparency states prohibit asking about previous compensation
• Employers cannot use your salary history to determine new pay rates
• This breaks the cycle where historical pay discrimination follows workers through careers
• You can voluntarily share salary history to support requests for higher offers

Benefits Descriptions

• Beyond base salary, many laws require general descriptions of benefits packages
• Typical inclusions: health insurance, retirement contributions, bonuses, stock options
• Some states require “comprehensive” descriptions while others accept “general” overviews
• Benefits disclosure helps candidates evaluate total compensation, not just salary

The State of Job Search 2025 Research Report shows that job seekers overwhelmingly value salary transparency, with compensation information ranking as the most important factor when evaluating opportunities.

Interview Guys Tip: When you see a salary range posted, the midpoint typically reflects what the employer expects to pay someone with moderate experience. If you’re more qualified, aim for the top 25% of the range during negotiations. If you’re less experienced, targeting the lower 50% shows you understand market positioning while leaving room for growth.

The reality is that most resume templates weren’t built with ATS systems or AI screening in mind, which means they might be getting filtered out before a human ever sees them. That’s why we created these free ATS and AI proof resume templates:

The Complete State-by-State Pay Transparency Map for 2026

As of early 2026, 16 states plus Washington D.C. have enacted pay transparency laws. Here’s your complete guide to understanding where these laws apply, when they took effect, and what they require.

States with Active Pay Transparency Laws (Comparison Table)

State	Effective Date	Employer Size Threshold	Key Requirements	Maximum Penalties
California	January 2023	15+ employees (1+ in CA)	Salary ranges in all postings including remote; provide to employees on request	Up to $10,000 per violation
Colorado	January 2021	1+ employee in state	Salary ranges in all postings; salary history ban	$500-$10,000 per violation
Connecticut	October 2021	All employers	Disclose ranges upon request and with offers	Varies by violation
Hawaii	January 2024	50+ employees	Salary ranges in external postings (not internal)	Enforced via civil complaints
Illinois	January 2025	15+ employees nationwide	Pay scales + benefits in postings for IL positions or IL-reporting roles	$500 (1st), $2,500 (2nd), $10,000 (3rd+)
Maryland	October 2024	Varies	Pay ranges in job postings	Varies by violation
Massachusetts	October 2025 (Phase 2)	25+ employees	Pay ranges in all postings, promotions, transfers	Warning (1st) up to $25,000 (4th+)
Minnesota	January 2025	30+ employees at MN sites	Starting pay ranges + benefits; no open-ended ranges	Not specified (AG enforcement)
Nevada	October 2021	All employers	Disclose after interviews or upon request	Up to $5,000 per violation
New Jersey	June 2025	10+ employees (20 weeks)	Pay ranges + benefits in all postings	Up to $600 per violation
New York	September 2023	4+ employees	Compensation ranges in all job postings	Varies by violation
Rhode Island	January 2023	All employers	Provide upon request and with offers	Varies by violation
Vermont	July 2025	5+ employees (1+ in VT)	Salary details in postings for new hires and internal positions	Varies by violation
Washington	January 2023 (amended 2025)	15+ employees	Wage scales + benefits; 5-day correction period	$100-$5,000 per violation
Washington D.C.	July 2024	Varies	Salary information in job postings	Varies by violation

Quick Reference: What You Need to Know by State

Strictest Requirements (Must Post in All Job Ads)

• California, Colorado, Illinois, Minnesota, New York, Washington
• These states require proactive disclosure without candidate requests
• Typically include both salary ranges and benefits information
• Remote positions often covered if employer is based in these states

Upon Request Only

• Connecticut, Nevada, Rhode Island
• Employers must disclose but don’t have to post publicly
• Information provided during interview process or with offers
• Less transparency for comparison shopping across employers

Recent Additions (2024-2025)

• Illinois (January 2025), Minnesota (January 2025), Maryland (October 2024)
• Massachusetts Phase 2 (October 2025), New Jersey (June 2025), Vermont (July 2025)
• These states are still in early enforcement phases with active compliance monitoring

Highest Penalties

• Massachusetts: up to $25,000 for repeat violations
• California: up to $10,000 per violation
• Illinois: up to $10,000 for third and subsequent violations

Special Considerations by State

California’s Broad Reach

• Applies to remote positions offered by California employers nationwide
• Even one California-based employee triggers the 15-employee threshold
• Annual reporting requirements for employers with 100+ employees
• Strongest enforcement track record among transparency states

Colorado’s Pioneer Status

• First state to implement comprehensive transparency (2021)
• Most studied for compliance rates and wage effects
• Open-ended ranges explicitly discouraged by enforcement guidance
• Strong salary history ban provisions

Illinois’s Dual Trigger

• Covers positions performed even partly in Illinois
• Also covers positions reporting to Illinois-based supervisors
• This “reporting relationship” provision is unique and expansive
• Creates compliance obligations for many out-of-state employers

Minnesota’s Anti-Gaming Provisions

• Explicitly prohibits open-ended ranges like “$40,000 and up”
• Requires “good faith estimate” with documented methodology
• 30-employee threshold counts employees at all Minnesota sites
• Third-party recruiters must include required information

New York’s Cascading Coverage

• State law covers employers with 4+ employees
• New York City has separate requirements (enacted November 2022)
• Westchester County has additional local provisions
• Multi-layered compliance required for NYC-area employers

Coming Soon: Delaware (September 2027)

Delaware Governor Matt Meyer signed pay transparency legislation in September 2025 with a two-year implementation period. Starting September 2027, employers with 25+ employees must include pay ranges and benefits descriptions in all job postings for Delaware-based positions and non-international remote roles offered by Delaware employers. Violations carry civil penalties from $500 to $10,000.

Interview Guys Tip: If you’re job hunting in states without pay transparency laws, use this information strategically. When negotiating with companies headquartered in transparency states, reference their posted ranges for similar positions. They’re legally required to disclose those figures in certain locations, which gives you data-backed negotiating power.

The 3.6% Wage Advantage: What the Research Actually Shows

Here’s where the story gets really interesting. Economists at the National Bureau of Economic Research wanted to understand whether pay transparency laws actually work. Their November 2025 study analyzed thousands of job listings in Colorado before and after the state’s 2021 transparency law took effect.

The results were striking.

The Key Findings (By the Numbers)

Disclosed Salary Increase: 3.6%

• Posted salary ranges jumped significantly after transparency laws took effect
• For a $75,000 position, that’s an extra $2,700 annually
• For a $100,000 role, it’s $3,600 more per year
• This represents what employers are willing to advertise, not just pay

Actual Earned Wages: +1.3%

• Real salaries increased across the board using Glassdoor self-reported data
• U.S. Department of Labor wage data confirmed the same 1.3% increase
• This wage effect appeared in ALL transparency states studied after 2021
• The increase applies to both new hires AND existing employees who never changed jobs

Job Listing Transparency: +30 Percentage Points

• The share of job postings with salary information jumped dramatically
• This represents millions of job seekers gaining access to compensation data
• However, compliance still averages only 75% (more on this later)
• High-paying positions show lower disclosure rates than entry and mid-level roles

Who Benefits? Everyone.

According to economist David Arnold, the lead researcher: “We find that pay transparency in job postings successfully leads to higher average wages. This positive wage effect appears for both incumbent workers and new hires, indicating that the policy impacts workers not directly targeted by the law.”

This means:

• You don’t have to change jobs to see wage benefits
• Current employees gain leverage for raises and promotions
• Entry-level workers start at higher base salaries
• Mid-career professionals can benchmark against posted market rates
• Even workers in non-transparency states benefit as regional wage competition increases

How Transparency Creates a Rising Tide

The mechanism behind this wage growth makes economic sense. When salaries become public, several forces come into play:

1. Wage Competition Increases

• Employers can see what competitors pay for similar roles
• This creates pressure to offer competitive compensation to attract talent
• The research found evidence that transparency gets firms to compete more aggressively
• Companies raising wages to match or exceed competitors bid up overall market rates

2. Information Asymmetry Decreases

• Job seekers gain pricing power when they know market rates
• Negotiating leverage shifts away from employers who benefited from opacity
• Candidates can make informed decisions about which offers to accept
• Workers learn whether they’re underpaid relative to market standards

3. Internal Equity Pressures Build

• Posted ranges become visible to existing employees
• Organizations face questions about pay fairness from current staff
• Many respond by adjusting incumbent worker compensation proactively
• This maintains competitive positioning and improves retention

4. Market Standardization Occurs

• Salary bands begin converging around similar levels for comparable roles
• Outlier low-paying employers face pressure to increase wages
• Industry-wide compensation norms become more transparent
• Geographic wage variations become clearer and more defensible

What Doesn’t Change (The Good News)

The NBER research found virtually no downside to transparency laws:

• No reduction in employment levels – companies didn’t hire fewer people
• No decrease in job postings – the number of available positions didn’t drop
• No changes to educational requirements – employers didn’t suddenly demand more credentials
• No adverse effects on internal pay equity – existing pay structures weren’t disrupted negatively
• No evidence of wage compression – high performers still earned more than average performers

As the State of Remote Work 2025 report shows, compensation transparency has become a critical factor for remote workers evaluating opportunities across state lines.

The Compliance Reality: Why One in Four Jobs Still Hides Pay

Here’s the uncomfortable truth about pay transparency: the laws are working, but compliance isn’t universal.

Research from the Federal Reserve Bank of New York found that compliance with pay transparency requirements typically tops out around 75%. That means approximately one in four job listings don’t disclose pay information even when legally required.

The Compliance Breakdown

Current Compliance Rates:

• 75% average compliance in states with transparency laws
• 24% of job ads don’t comply with disclosure requirements as of January 2025
• 20-27 percentage point jump in posted ranges immediately after laws take effect
• Plateaus below 100% even years after implementation

What Happens When Laws Take Effect:

• Month 1: Immediate 20 percentage point increase in postings with salary info
• Months 2-12: Gradual increase as awareness spreads
• Year 2+: Compliance stabilizes around 75% and plateaus
• High-paying positions show consistently lower compliance than entry-level roles

Why Companies Don’t Comply

Lack of Awareness (Estimated 30% of Non-Compliance)

• Small employers remain unaware of new requirements
• Multi-state companies unclear about which jurisdictions apply
• Remote work policies create confusion about applicable laws
• HR departments overwhelmed by rapid regulatory changes across states

Intentional Withholding (Estimated 40% of Non-Compliance)

• Internal pay inequities they don’t want exposed publicly
• Competitive concerns about revealing compensation strategies
• Fear of existing employees discovering pay disparities
• Strategic preference for negotiating power in salary discussions

Ambiguous Requirements (Estimated 20% of Non-Compliance)

• “Good faith salary range” allows interpretation flexibility
• Some post meaningless ranges like “$50,000 to $200,000”
• Technical compliance without providing useful information
• Gray areas around benefits descriptions and “other compensation”

Technical Challenges (Estimated 10% of Non-Compliance)

• Multi-state employers struggle tracking which positions fall under which laws
• Third-party recruiters don’t always receive complete information
• Job board platforms may not support required formatting
• Internal systems not updated to accommodate disclosure requirements

The Enforcement Landscape

States Taking a Coaching Approach:

• Most jurisdictions prioritize education over immediate penalties
• Cure periods allow fixing violations before fines kick in
• Warning letters precede monetary penalties for first offenses
• Focus on bringing employers into compliance rather than punishment

Grace Periods by State:

• Illinois: 14 days (first offense), 7 days (second offense)
• Massachusetts: 2 business days during first two years
• Washington: 5 business days after written notice
• Colorado: No formal grace period but coaching emphasized

Penalty Structures:

State	First Violation	Second Violation	Third+ Violations
California	Up to $100	Up to $200	Up to $10,000
Illinois	Up to $500 (14-day cure)	Up to $2,500 (7-day cure)	Up to $10,000 (no cure)
Massachusetts	Warning	$500-$1,000	Up to $25,000
New Jersey	Up to $600	Up to $600	Up to $600
Washington	$100-$1,000	$1,000-$3,000	$3,000-$5,000

Active Enforcement Examples:

• Colorado publishes violation notices and enforcement actions publicly
• New York City has conducted systematic compliance sweeps
• California Civil Rights Department accepts complaints via online portal
• Multiple states have issued fines in the $5,000-$10,000 range for persistent violators

Real-World Compliance Challenges

The Remote Work Problem:

• Which state’s law applies to a remote position performable anywhere?
• Do you follow the employer’s HQ state, the candidate’s state, or both?
• Can you exclude specific states from consideration to avoid compliance?
• Does “reports to supervisor in State X” trigger that state’s requirements?

The Third-Party Recruiter Dilemma:

• Who’s responsible when Indeed or LinkedIn posts jobs: employer or platform?
• What happens when recruiters don’t receive complete compensation data?
• Are agencies liable for non-compliant postings they didn’t create?
• How do automated job syndication systems handle state-specific requirements?

The Internal Equity Exposure:

• Existing employees see posted ranges and realize they’re underpaid
• Do you adjust current staff salaries to match new hire ranges?
• How do you explain pay differences for similar roles?
• What’s the cost of bringing everyone up to posted minimums?

The How Many Companies Are Using AI to Review Resumes research shows that many employers are simultaneously grappling with pay transparency requirements and AI hiring system compliance, creating a complex regulatory environment.

Interview Guys Tip: If you encounter a job posting in a transparency state without salary information, report it to the state labor department. You’re helping enforce compliance that benefits all job seekers. Most states have simple online complaint forms, and you can typically submit anonymously.

How to Use Pay Transparency Laws to Your Advantage

Knowledge is power, but only if you use it strategically. Here’s how to leverage pay transparency laws throughout your job search and career.

Before You Apply

Research Posted Ranges

• Compare posted salaries against your current compensation
• Check if the role represents a meaningful step forward
• Reference highest-paying jobs in your field for context
• Note whether ranges include bonuses, equity, or just base salary
• Calculate the midpoint (usually what they expect to pay someone with moderate experience)

Check Competitor Postings

• Search for similar positions at other companies in the same transparency state
• If one employer posts $80K-$100K while competitors offer $70K-$90K, you’ve found negotiation ammunition
• Look for patterns across 5-10 similar postings to understand true market rates
• Pay attention to role level, required experience, and company size when comparing
• Save screenshots or links to reference during salary discussions

Document Everything

• Screenshot posted salary ranges before applying
• Save the original job posting with the full text
• Note the date you captured the information
• Employers sometimes adjust ranges during hiring processes
• Having original postings protects you if discussions shift later

Evaluate Total Compensation

• Don’t focus solely on salary ranges
• Review benefits descriptions for health insurance quality
• Look for retirement matching percentages
• Consider bonuses, stock options, and profit-sharing
• Factor in work-life balance, remote flexibility, and growth potential

During Interviews

Reference Posted Ranges Directly

• If an employer tries lowballing below their posted minimum, politely reference the advertised range
• Example: “I noticed the posting listed $75,000 to $95,000. Can you help me understand where my experience positions me in that range?”
• In transparency states, they’re legally obligated to honor posted compensation
• Prepare specific talking points about why you deserve the high end

Ask About Range Positioning

• “Based on my 7 years of experience, where would you position me within the posted range?”
• This gives insight into how they value your qualifications
• Their answer reveals whether they see you as entry-level, mid-level, or senior within the role
• If they suggest the lower end, ask what additional skills would move you higher

Request Information Proactively

• Even in states without posting requirements, many have disclosure-upon-request provisions
• Don’t be shy about asking for salary information during interviews
• Timing matters: after second interview or when they express strong interest
• Frame it positively: “To help me evaluate this opportunity fully, could you share the compensation range?”

Clarify What’s Included

• “Does the posted range include potential bonuses?”
• “Are stock options or equity part of standard offers at this level?”
• “What does the benefits package typically look like for this role?”
• “How does the salary review process work here?”

When Negotiating

Use Transparency Data as Leverage

• Compile posted ranges from 5+ similar positions at different companies
• Calculate the average and median to demonstrate market rates
• Present this data matter-of-factly: “Based on posted ranges for similar roles in [state], the market rate appears to be $X to $Y”
• This moves negotiations from subjective assessments to objective data discussions

Highlight Your Value Positioning

• “The posted range is $70,000 to $100,000. Given my 8 years of experience with [specific skills], I’d like to discuss targeting the $90,000 to $100,000 portion.”
• Be specific about what justifies your position in the upper range
• Reference accomplishments that exceed typical role requirements
• Quantify your past impact with metrics and results

Address Internal Equity

• If promoted internally in a transparency state, reference posted ranges for external candidates
• Example: “I see the external posting for this role lists $85,000 to $105,000, but my current offer is $82,000. Can we discuss closing that gap?”
• This provides concrete evidence if you’re being underpaid relative to new hires
• Companies often pay external hires more than internal promotions, transparency helps correct this

Negotiate Beyond Salary

• If they can’t meet your salary target, negotiate other benefits
• Additional vacation days, flexible work arrangements, professional development budget
• Signing bonuses to bridge the gap between their offer and your target
• Earlier salary review or accelerated promotion timeline
• Remote work options that reduce commuting costs

The Salary Negotiation Email Templates guide provides specific language for incorporating transparency law data into your negotiation conversations.

For Remote Workers

Remote work creates particularly interesting transparency opportunities. Key insight: If you live in a non-transparency state but apply to positions with companies headquartered in California, Colorado, or New York, you may benefit from their disclosure requirements.

Strategic Approach:

• Search job boards specifically for remote positions posted by companies based in transparency states
• Filter by company location, not job location
• Even if you’ll never set foot in their offices, many post salary ranges that apply nationwide
• Use advanced search on LinkedIn: “remote [job title] location:Colorado” or “remote [job title] location:California”
• Check companies’ career pages directly, especially those in San Francisco, Denver, NYC

Remote Work Considerations:

• Some companies adjust salaries based on your location (geographic pay differentials)
• Ask directly: “Does this range apply regardless of where I live?”
• Understand if cost-of-living adjustments will affect your offer
• Factor in whether remote work is permanent or hybrid with required office time

The State of Remote Work 2025 report examines how remote work policies interact with state-specific employment regulations.

What Pay Transparency Means for Different Career Stages

The impact of pay transparency varies depending on where you are in your career journey. Here’s how to leverage these laws based on your experience level.

Early Career and Entry-Level (0-3 Years Experience)

The Advantages:

• No more guessing what constitutes reasonable entry-level compensation in your field
• Identify employers offering competitive starting salaries before wasting time on applications
• Compare offers objectively using posted market data
• Avoid accepting lowball offers when better-paying options exist
• Build salary negotiation skills early using transparent benchmarks

The Challenges:

• Posted ranges often span wide territories ($45K to $75K is common)
• Entry-level candidates typically land in the lower 25-40% of ranges
• Less negotiating leverage as you build your track record
• May need to accept lower positioning initially with clear growth trajectory
• Ranges don’t always reflect signing bonuses or other new-grad incentives

Best Practices:

• Target the lower-middle portion of ranges (40-50th percentile) as realistic starting points
• Ask about typical salary progression in first 1-2 years
• Reference your internships, projects, and relevant coursework to justify higher positioning
• When making your first resume, knowing target ranges helps evaluate whether to accept offers
• Don’t undersell yourself, but be realistic about competing against candidates with experience

Mid-Career Professionals (4-15 Years Experience)

The Advantages:

• Compare current compensation against market rates for similar roles instantly
• Identify whether you’re underpaid and by how much using concrete data
• Use transparency information during performance reviews and promotion discussions
• Evaluate lateral moves objectively based on compensation data
• Understand geographic pay variations if considering relocation

The Challenges:

• Mid-career compensation depends heavily on specialized skills transparency laws don’t capture
• Industry knowledge, relationship networks, and specific tool expertise affect positioning
• Posted ranges provide floors and ceilings but not your exact market value
• Some roles at this level have wide ranges ($90K to $150K) with positioning unclear
• Transitions between related roles make direct comparisons difficult

Best Practices:

• Target 60-80th percentile of posted ranges based on your specific expertise
• Document accomplishments quantitatively to justify premium positioning
• If currently employed, audit your salary against 10+ similar posted positions
• Use transparency data to prepare for annual reviews: “Market rate for my role appears to be…”
• When considering offers, factor total compensation beyond base salary ranges
• Reference transparency data when negotiating promotions or raises

Senior and Executive Roles (15+ Years, Leadership Positions)

The Transparency Paradox:

• NBER research noted many high-paying role listings still don’t include compensation
• Executive roles show lower compliance than entry and mid-level positions
• When senior postings do include ranges, they provide rare insight into executive comp
• Leadership compensation opacity remains despite transparency laws

The Advantages:

• When disclosed, executive ranges reveal comp structures that traditionally operated with extreme secrecy
• Can benchmark C-suite, VP, and director-level compensation across companies
• Transparency helps negotiate transition from individual contributor to management
• Data supports conversations about equity, bonuses, and long-term incentives
• Can identify companies that truly invest in senior leadership vs. those that don’t

The Challenges:

• Senior compensation includes significant variable components beyond posted ranges
• Equity grants, performance bonuses, and profit-sharing often exceed base salary
• Posted range may represent only 40-50% of total compensation package
• Executive comp committees have more flexibility on individual negotiations
• Personal networks and relationships influence offers more at senior levels
• Limited comparable postings make market rate analysis more difficult

Best Practices:

• Focus on total compensation packages, not just base salary ranges
• Negotiate equity grants, board seats, and profit-sharing separately
• Use posted ranges as starting points but expect customized packages
• Research company financial performance to assess bonus potential
• Consider exit packages, change-of-control provisions, and severance terms
• When available, reference posted ranges but emphasize unique value proposition

The Career Change at 40 guide discusses how transparency affects professionals pivoting to new fields mid-career.

Special Considerations by Career Stage

Career Changers (Any Level):

• Use transparency data to understand typical comp for target industries
• May need to accept positioning in lower 50% of ranges during transitions
• Compare ranges between current and target fields to assess financial impact
• Look for transferable skill premiums that justify higher positioning
• Be prepared to explain why your background justifies specific range placement

Returning to Workforce (After Career Break):

• Posted ranges help understand current market rates after time away
• Use transparency data to combat lowball offers that exploit career gaps
• Reference ranges to demonstrate knowledge of fair market compensation
• Address gap directly while anchoring to posted market rates
• Consider whether to target lower-middle range initially or negotiate aggressively

Industry Switchers:

• Compare ranges across industries to understand relative pay scales
• Tech, finance, and healthcare often show premium ranges vs. education, nonprofit
• Use transparency to set realistic expectations for industry transitions
• Identify which skills command premiums in your target industry
• Research whether geographic location affects ranges differently by industry

The Future of Pay Transparency: What’s Coming Next

Pay transparency isn’t slowing down. If anything, the momentum is accelerating.

More States Are Coming

Multiple states have introduced pay transparency legislation that hasn’t yet passed. As more jurisdictions observe positive wage effects without employment disruptions, expect additional states to follow Colorado’s lead.

The pattern suggests a tipping point. Once roughly half of states adopt transparency requirements, remaining states may face competitive pressure to follow suit or risk employers preferring to hire in jurisdictions with clearer compensation norms.

Federal Legislation Remains Possible

The Salary Transparency Act introduced in Congress in 2023 would require federal-level pay disclosure in job postings. While it hasn’t passed, the growing state-level adoption creates political momentum for potential federal action.

A federal law would eliminate the complex patchwork of state requirements that currently challenges multi-state employers, potentially increasing compliance rates.

International Expansion

The European Union’s Pay Transparency Directive requires EU member countries to implement comprehensive transparency measures by June 2026. This includes mandatory gender pay gap reporting and joint pay assessments for large employers.

Global companies operating in both the U.S. and Europe increasingly adopt unified transparency policies rather than maintaining different standards by jurisdiction.

Technology Is Changing the Game

AI-powered compensation analysis tools are emerging that aggregate posted salary data, providing unprecedented insight into market rates. These tools could accelerate wage normalization by making compensation data more accessible and analyzable.

The State of AI in the Workplace in 2025 explores how artificial intelligence is transforming multiple aspects of employment, including compensation analysis.

Common Questions About Pay Transparency Laws

Q: Do pay transparency laws apply to remote positions?

Short Answer: It depends on the specific state law and the position’s characteristics.

When Transparency Laws Apply to Remote Roles:

• Position can be performed in a transparency state (even if remote from elsewhere)
• Role reports to a supervisor, office, or worksite located in a transparency state
• Employer is headquartered in a transparency state (varies by jurisdiction)
• Position is advertised or could be filled by someone in a transparency state

When They Don’t Apply:

• Position explicitly excludes transparency state residents from consideration
• Role requires physical presence in non-transparency states only
• Employer can demonstrate position involves only “occasional, intermittent, or sporadic” contact with transparency states

Example Scenarios:

• Company in California posts a remote role open to all U.S. residents → Must include CA range
• New York company posts remote role open nationwide → Must follow NY requirements
• Texas company posts remote role but excludes CO, CA, NY applicants → May avoid requirements (risky strategy)

Q: Can employers post extremely wide salary ranges to technically comply?

Short Answer: Some try, but several states explicitly prohibit this practice.

What’s Prohibited:

• Minnesota explicitly bans “open-ended” ranges like “$40,000 and up” or “up to $100,000”
• Illinois guidance discourages meaningless ranges and emphasizes “good faith” estimates
• Colorado enforcement targets ranges that don’t reflect genuine compensation expectations
• Most states require ranges representing what employer “reasonably expects to pay”

What This Means in Practice:

• Ranges like “$50,000 to $200,000” may technically comply but invite enforcement scrutiny
• “Good faith” standards require ranges based on actual budgets and comparable roles
• Employers should document methodology for establishing ranges
• Enforcement agencies can investigate whether ranges are genuine or evasive

Red Flags for Enforcement:

• Ranges spanning 300%+ of the minimum
• Unusually wide ranges inconsistent with similar positions at the company
• Ranges that would encompass entry-level through executive compensation
• No clear methodology for how range was determined

Q: What happens if an employer offers less than the posted minimum?

Short Answer: This likely violates transparency laws and you should report it.

Your Options:

• Politely reference the posted range: “I noticed the posting listed $75,000 to $95,000, but this offer is $68,000. Can you explain the discrepancy?”
• Request they honor the posted minimum as advertised
• File a complaint with your state labor department if they refuse
• Many states have online complaint forms for transparency violations
• You can typically submit complaints anonymously

What Enforcement Agencies Can Do:

• Investigate the violation and require employer to correct the posting
• Impose penalties ranging from warnings to fines ($500-$10,000 depending on state)
• Require employer to honor posted ranges for affected candidates
• Monitor employer for future compliance
• In some states, order compensation adjustments for affected workers

Important Note: If you accept an offer below the posted minimum, you may lose standing to complain later. Address discrepancies before accepting offers.

Q: Do transparency laws apply to contract positions and freelance work?

Short Answer: Generally no, but it depends on how the work is classified.

Standard Interpretation:

• Pay transparency laws focus on employee positions, not independent contractors
• Freelance arrangements typically fall outside these regulations
• Contract-to-hire positions where you’d become an employee may require disclosure
• Temporary positions filled through staffing agencies usually require disclosure

The Classification Question:

• If you’re misclassified as a contractor but are legally an employee, transparency laws apply
• The employer can’t avoid transparency requirements through misclassification
• If you control your own hours, work for multiple clients, and provide your own tools → likely not covered
• If employer controls when/where/how you work and you work for them exclusively → may be covered

State Variations:

• Some states explicitly address temporary and contract workers
• Third-party staffing agencies in some states must include ranges for client positions
• Always check specific state requirements for contractor provisions

Q: Can I negotiate above the posted maximum?

Short Answer: Absolutely yes. Posted ranges aren’t absolute ceilings.

Why You Can Negotiate Higher:

• Posted ranges represent employer’s initial expectations, not firm limits
• Exceptional qualifications justify exceeding the posted maximum
• Specialized experience, rare skills, or unique expertise add premium value
• Market conditions change between posting and hiring
• Employers have budget flexibility beyond posted ranges

How to Negotiate Above the Maximum:

• Present specific evidence of exceptional qualifications
• Reference accomplishments that exceed typical role requirements
• Demonstrate rare skills or experience not common in the candidate pool
• Show competing offers above the posted maximum
• Make business case: “I understand the posted range tops out at $120,000, but given my 15 years of specialized experience with [rare skill], I’d like to discuss $135,000”

Realistic Expectations:

• Negotiating 5-10% above maximum is often achievable with strong justification
• 15-20% above requires truly exceptional circumstances
• Beyond 20% above posted maximum, you may be positioning yourself for a different level role
• Some companies have strict budget constraints that limit flexibility

Q: How do I report a pay transparency violation?

Quick Guide by State:

State	Reporting Method	What to Include
California	CA Civil Rights Dept online complaint	Job posting link, employer name, date
Colorado	CO Dept of Labor complaint form	Job posting screenshot, description of violation
Illinois	IL Dept of Labor online portal	Job posting, dates, employer details
New York	NY State Labor Dept complaint	Posting details, company information
Washington	WA Labor & Industries	Violation specifics, documentation

What Happens After You Report:

• Agency investigates the complaint
• Employer receives notice and opportunity to respond
• Violations confirmed may result in warnings or fines
• Your identity can typically remain confidential
• No retaliation is permitted for good faith complaints

Q: Do I have to disclose my current salary if asked?

Short Answer: In states with salary history bans, you don’t have to and employers can’t require it.

States with Salary History Bans (Partial List):

• California, Colorado, Connecticut, Illinois, Maryland, Massachusetts
• Nevada, New Jersey, New York, Oregon, Vermont, Washington
• Multiple cities in other states also ban salary history inquiries

What This Means:

• Employers cannot ask about your current or past salary
• You don’t have to answer if they ask anyway
• They can’t use salary history to determine your new pay
• You CAN voluntarily share to support requests for higher offers

If Asked in a Ban State:

• “I understand [State] prohibits salary history inquiries. I’d prefer to focus on the value I bring to this role.”
• “Rather than discussing my current salary, I’d like to understand the range for this position.”
• Report violations to your state labor department if they persist in asking

Your Pay Transparency Action Plan: What to Do Right Now

Ready to put this knowledge to work? Here’s your step-by-step action plan based on your current situation.

If You’re Currently Job Searching

Week 1: Research and Document

• [ ] Identify if you live/work in a pay transparency state
• [ ] Search for 10+ job postings in your field that include salary ranges
• [ ] Create a spreadsheet tracking: job title, company, posted range, location, date
• [ ] Calculate average minimum, maximum, and midpoint across postings
• [ ] Note which companies don’t comply in transparency states (potential red flags)

Week 2: Evaluate and Apply

• [ ] Compare your target salary against documented market ranges
• [ ] Screenshot salary ranges for all positions before applying
• [ ] Prepare talking points about where your experience positions you in ranges
• [ ] Draft negotiation scripts referencing specific transparency data
• [ ] Set salary floor: lowest acceptable offer based on market research

During Interviews:

• [ ] Ask range positioning questions after second interview
• [ ] Reference posted ranges if lowballed: “The posting listed $X-$Y…”
• [ ] Request salary information if not volunteered (in request-based states)
• [ ] Document any verbal salary discussions for later reference

When Negotiating:

• [ ] Present compiled market data showing 5+ comparable ranges
• [ ] Explain specifically why you deserve upper portion of range
• [ ] Use transparency data to counter lowball offers with confidence
• [ ] Negotiate other benefits if salary is truly maxed out

If You’re Currently Employed

Monthly Action Items:

• [ ] Search for your job title in transparency states monthly
• [ ] Track posted ranges for roles similar to yours
• [ ] Document if you’re being paid below market based on posted ranges
• [ ] Save evidence: job postings, date captured, company names

Before Your Next Performance Review:

• [ ] Compile 10+ recent job postings showing market rates for your role
• [ ] Calculate percentage gap between your salary and market average
• [ ] Prepare specific talking points: “Market data shows roles like mine typically pay $X-$Y”
• [ ] Document your accomplishments quantitatively to justify premium positioning
• [ ] Practice negotiation conversation using transparency data

If Considering Internal Promotion:

• [ ] Find external postings for the target role in your company’s state
• [ ] Reference those ranges during promotion discussions
• [ ] Address equity: “External postings show $X-$Y, but my offer is $Z”
• [ ] Use transparency to prevent underpaying vs. external hires

Quarterly Career Audit:

• [ ] Check if your state has passed new transparency laws
• [ ] Research whether you’re underpaid using updated market data
• [ ] Update your market rate documentation
• [ ] Assess if staying is financially optimal or if exploring moves makes sense

If You’re an HR Professional or Hiring Manager

Immediate Compliance Checklist:

• [ ] Audit all active job postings for salary range compliance
• [ ] Verify postings in each state match that jurisdiction’s requirements
• [ ] Document methodology for how you establish “good faith” ranges
• [ ] Update job posting templates to include required fields
• [ ] Train hiring managers on disclosure requirements and timing

Ongoing Compliance Management:

• [ ] Subscribe to state labor department updates for transparency law changes
• [ ] Review new postings before publication for compliance
• [ ] Monitor competitor postings to ensure your ranges are competitive
• [ ] Prepare responses to candidate questions about range positioning
• [ ] Establish process for handling requests for salary information

Internal Equity Preparation:

• [ ] Audit current employee compensation vs. posted ranges for new hires
• [ ] Identify employees paid below posted minimums (high risk)
• [ ] Budget for potential equity adjustments when ranges become visible
• [ ] Develop communication strategy for discussing pay differences
• [ ] Create career progression frameworks showing salary advancement

Putting Your Transparency Knowledge to Work

You now understand which states require salary disclosure, how transparency laws increase wages across the board, and what compliance really looks like. The 3.6% wage advantage isn’t automatic, but it’s available to those who know how to leverage transparency laws strategically.

Your action steps moving forward:

First, identify whether you live or work in a pay transparency state. If you do, familiarize yourself with the specific requirements so you know what employers must disclose and when.

Second, start documenting posted salary ranges for positions matching your skills and experience. This creates a database of market rate information you can reference during salary negotiations and performance reviews.

Third, use transparency data proactively. Don’t wait for employers to volunteer information. Ask direct questions about compensation positioning, reference posted ranges from competitors, and advocate for pay that reflects market rates backed by concrete data.

The research is clear: pay transparency laws create measurable wage increases for both new hires and existing employees. That 1.3% bump in actual earnings might not seem massive, but it compounds year after year and represents billions of dollars shifted from employer coffers to worker paychecks.

Pay transparency transforms compensation from a game of information asymmetry where employers hold all the cards into a more equitable negotiation where both parties operate with similar data. That shift fundamentally changes employment dynamics, creating better outcomes for job seekers willing to do their homework.

For more strategies on maximizing your earning potential, explore our guides on how to ask for a raise, navigating salary expectations questions, and understanding what employers really look for when evaluating compensation.

The 2026 pay transparency map is complex, but it’s navigable. Armed with the right information, you’re positioned to capture your share of that 3.6% advantage.

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