Salary Transparency Laws 2025: Your Complete Guide to Getting the Pay You Deserve

You’ve applied to dozens of jobs with vague descriptions like “competitive salary” and “DOE” only to discover in the final interview that the pay range is $20,000 below your expectations. Sound familiar?

That frustrating guessing game is finally ending.

In 2025, a wave of new salary transparency laws is fundamentally reshaping how companies hire and how job seekers navigate the market. For the first time, millions of workers have legal protection requiring employers to show their cards upfront.

These aren’t just incremental changes—they’re game-changers that put real negotiating power back in your hands. Whether you’re actively job hunting or planning your next career move, understanding these laws could be worth thousands of dollars in additional compensation.

In this guide, you’ll discover exactly which states require salary ranges, how to leverage these laws even if you don’t live in a transparency state, and the negotiation strategies that can help you maximize your earning potential in this new landscape.

The 2025 Salary Transparency Revolution

This year marks a turning point in workplace transparency. Five new states implemented comprehensive salary disclosure laws in 2025, joining the growing movement that began with Colorado in 2021.

What’s New This Year:

• Illinois (January 1): Employers with 15+ employees must include pay scales and benefits in all job postings. They must also announce external job postings to current employees within 14 days, creating new opportunities for internal advancement.

• Minnesota (January 1): Companies with 30+ employees must post starting salary ranges and benefits descriptions. The law explicitly prohibits “open-ended” ranges like “$40,000 and up”.

• New Jersey (June 1): Employers with 10+ employees must include wage ranges and benefits in job postings, with penalties ranging from $300-$600 per violation.

• Vermont (July 1): Companies with 5+ employees must include compensation ranges for positions located in Vermont or performed remotely for Vermont-based offices.

• Massachusetts (October 29): Employers with 25+ employees must disclose pay ranges in job postings and provide ranges to employees offered promotions or transfers.

The Current Landscape:

Currently, 14 states plus Washington D.C. have enacted pay transparency laws, with 10 additional states having introduced related legislation. This covers key employment markets including California, Colorado, New York, and Washington—states that collectively represent over 40% of the U.S. workforce.

Interview Guys Tip: Even if your state doesn’t require salary transparency, you can leverage laws from other states when applying to remote positions. Many companies now post salary ranges nationwide to avoid compliance headaches across multiple jurisdictions.

How These Laws Actually Help You

The shift toward transparency isn’t just about compliance—it’s creating measurable benefits for job seekers and workers.

Real Negotiating Power

SHRM research shows that 42% of HR professionals report seeing an increase in qualified applicants when they include salary ranges in job postings. This isn’t coincidental—transparency attracts candidates who know they’re in the right compensation ballpark, leading to more productive negotiations.

When you know a role pays $75,000-$95,000, you can craft your response strategically if asked about salary expectations. Instead of the anxiety-inducing guessing game, you can confidently reference the posted range and position yourself within it based on your experience level.

For detailed scripts on handling these conversations, our guide on answering salary expectation questions provides word-for-word templates that help you avoid leaving money on the table.

Better Job Matching

Transparency eliminates the frustration of investing time in opportunities that were never realistic. You can now focus your applications on roles where the compensation aligns with your needs and market value.

This efficiency works both ways—companies report spending less time interviewing candidates who ultimately can’t agree on compensation terms.

Market Intelligence

Posted salary ranges become valuable market research, even for roles you’re not actively pursuing. By tracking compensation trends in your field, you can make more informed decisions about when to seek new opportunities or negotiate raises in your current role.

If you’re trying to understand whether a posted range reflects reality, our salary range research guide shows you how to uncover what companies actually pay beyond what they advertise.

Interview Guys Tip: Create a spreadsheet tracking salary ranges you see for roles similar to yours. Even ranges that seem wide ($50K-$90K) provide crucial anchor points for negotiations and help you understand how different companies value specific skills.

What Employers Must Include (And What They Try to Hide)

Understanding the specific requirements helps you evaluate whether companies are complying in good faith or trying to game the system.

Basic Legal Requirements

Most transparency laws require employers to include:

• Good-faith salary ranges: Not vague phrases like “$60,000 and up” or “$45,000 DOE”
• Benefits descriptions: General information about health insurance, retirement contributions, and other compensation
• Internal and external posting compliance: Many laws apply to both external job listings and internal promotion opportunities

State-Specific Variations

Illinois goes beyond basic disclosure by requiring employers to announce external job postings to current employees within 14 days, ensuring internal candidates aren’t overlooked for advancement opportunities.

California’s enforcement includes civil penalties ranging from $100-$10,000 per violation, making it one of the strictest enforcement regimes.

New Jersey requires employers to make “reasonable efforts” to notify current employees about promotional opportunities before filling positions externally.

Red Flags to Watch

Be wary of job postings that:

• Use extremely wide ranges ($40,000-$120,000) that provide little useful information
• Include phrases like “depending on experience” without specifying the range
• Omit benefits information in states that require it
• Post identical ranges for vastly different experience levels

Your Rights and How to Use Them

These laws create specific protections and opportunities that extend beyond just seeing salary ranges in job postings.

Know Your Legal Protections

Federal contractors are already subject to pay transparency protections under Executive Order 11246, which prohibits retaliation against employees who discuss, disclose, or inquire about compensation. State laws are extending these protections to private sector employees.

You have the right to:

• Discuss salary information with colleagues without retaliation
• Request pay range information during the interview process (in applicable states)
• File complaints with state labor departments for violations
• In some states, bring civil lawsuits for transparency violations

Enforcement Reality

Most states are initially taking an educational rather than punitive approach to enforcement, with agencies focusing on coaching employers into compliance. However, penalties exist and are being used:

Massachusetts implements escalating penalties: warnings for first offenses, fines up to $300 for second violations within three years, and up to $600 for additional violations.

Washington gives employers five business days to correct non-compliant postings after receiving written notice, helping companies avoid penalties while ensuring quick compliance.

Practical Strategies

Use transparency laws strategically:

• Research companies before interviews: Check if they’re posting ranges in transparency states, even for remote roles
• Reference posted ranges during negotiations: “I noticed similar roles at your company are posted in the $X-Y range…”
• Leverage internal promotion requirements: In states like Illinois, ask about advancement opportunities during interviews

For specific negotiation language and email templates, our salary negotiation guide provides proven frameworks for these conversations.

Interview Guys Tip: If a company posts a role in multiple states, they often apply the most comprehensive transparency requirements across all locations to simplify their hiring process. This means you might benefit from transparency rules even if your state doesn’t require them.

The Potential Downsides: What Research Shows

While salary transparency offers significant benefits, research reveals some potential complications worth understanding.

Wage Compression Effects

Academic research using data from 13 U.S. states that passed “right of workers to talk” laws found that pay transparency decreased average wages for full-time workers by roughly 2% over three years following enactment.

Harvard Business Review analysis suggests this occurs because transparency may reduce companies’ willingness to pay premium salaries, as they know other employees will learn about high compensation packages.

Gaming the System

Some employers are finding creative ways to work around transparency requirements:

• Posting unrealistically wide ranges that provide little useful information
• Creating different job titles to avoid posting requirements
• Moving certain operations to non-transparency states
• Using contract positions to avoid employee disclosure rules

Market Dynamics

Research indicates that pay transparency may shift the focus from individual negotiation to standardized compensation bands, potentially limiting high performers’ ability to command premium salaries.

However, these effects must be weighed against the documented benefits of reducing gender and racial pay gaps, which transparency laws specifically target.

5 Ways to Leverage These Laws Right Now

Whether you live in a transparency state or not, you can use these trends to your advantage immediately.

1. Target Transparency States for Remote Work

Many companies hiring for remote positions now post salary ranges if they accept candidates from transparency states. Even if you don’t live in Colorado or California, applying for remote roles at companies in these states often means access to salary information.

2. Use Posted Ranges as Market Research

Collect salary range data from job postings in your field, even for positions you’re not pursuing. This information becomes powerful ammunition for performance reviews and salary negotiations at your current job.

3. Apply Transparency Principles in Non-Transparent States

When interviewing with companies that don’t legally have to disclose ranges, you can reference transparency trends: “I understand many companies are moving toward more salary transparency. Could you share the range budgeted for this position?”

4. Leverage Internal Promotion Requirements

Several new laws require companies to announce external job postings to current employees. If you work for a company covered by these laws, you now have legal protection ensuring you’ll learn about advancement opportunities.

5. Build Stronger Negotiation Cases

Understanding the psychology behind effective salary discussions gives you an edge in any negotiation. Our interview psychology guide explains how to control the conversation from the first 90 seconds, including salary discussions.

Interview Guys Tip: Keep a spreadsheet of salary ranges you’ve seen for similar roles across different companies and states. This becomes powerful negotiation ammunition, allowing you to say: “Based on market research across similar companies, the range for this type of role appears to be $X-Y.”

What’s Coming Next

With 10 additional states having introduced pay transparency bills that haven’t yet passed, the trend toward salary disclosure is accelerating rather than slowing down.

Federal Movement

A federal Salary Transparency Act was introduced in the House in 2023, which would require all U.S. employers to disclose wage ranges in job postings. While still pending, growing state-level adoption increases pressure for federal action.

Expanding Requirements

Future laws may include:

• Mandatory pay equity audits for larger employers
• Requirements to disclose promotion criteria and advancement timelines
• Public reporting of pay gap data by demographics
• Integration with artificial intelligence bias prevention laws

Global Influence

The European Union’s Pay Transparency Directive requires implementation by June 2026, creating international pressure for multinational companies to adopt consistent transparency practices.

Your Action Plan

Immediate Steps:

1. Research your target companies: Check if they post salary ranges in transparency states, even for roles similar to yours
2. Document market data: Start tracking salary ranges you see for your skill set
3. Update your negotiation strategy: Prepare to reference transparency trends in salary discussions
4. Monitor your state: Stay informed about pending transparency legislation in your area

Long-term Strategy:

Salary transparency represents a fundamental shift in workplace power dynamics. Companies that embrace transparency often signal broader commitments to fairness and employee satisfaction. Consider this information when evaluating potential employers, not just current opportunities.

The laws taking effect in 2025 mark the beginning of a larger transformation in how we discuss and determine compensation. By understanding these changes and positioning yourself accordingly, you can benefit regardless of whether you live in a transparency state.

The conversation around salary is changing—make sure you’re part of shaping it rather than just reacting to it.

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