2025 pay transparency legislation update

2025 is shaping up to be another big year for pay transparency.

Over a dozen states are currently considering legislative proposals that would require employers to include salary information in job postings. In addition, a few states that already have pay transparency laws on the books are considering bills that would make those laws stricter. Finally, new laws take effect in five states this year.

Proposed pay transparency laws

Alaska

Proposed S.B. 78 would require all employers in Alaska to include a description of compensation, including a pay range, in any job advertisement or other solicitation for employment. The bill would also restrict salary history inquiries and strengthen employee rights to discuss and disclose their wages.

California

California was among the first states to adopt a pay transparency law, but a proposed law would enhance the existing requirements. S.B. 642 would narrow the acceptable pay ranges required in job postings to “no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.” This bill is likely an attempt to prevent employers from listing pay ranges that are too broad to be useful to a job seeker – a common criticism of posted salary information.

Connecticut

Connecticut law already requires employers to share a pay range with job applicants upon request or before making an offer of compensation, whichever is earlier. But H.B. 6517, currently under consideration in the Connecticut General Assembly, would require employers to include a pay range and general description of benefits in any public or internal job posting. Employees would also have the right to learn the pay range for their current role annually.

Iowa

S.B. 502 would require employers with 15 or more employees to include a pay scale in any job posting. Violations would be punishable by civil penalties ranging from $100 to $10,000 per violation.

Oregon

Proposed H.B. 2746 would require all Oregon employers to include a pay range in any internal or external posting for a job, promotion or transfer opportunity. The bill would also give employees the right to learn the pay range for their own roles upon hire, transfer, promotion and once per year upon request. Public hearings about the bill were held on March 3 and 5.

Virginia

S.B 1132 would require all employers in Virginia to include a good faith pay range in any public or internal posting advertising a job, promotion or transfer opportunity. The bill has passed the state legislature and is awaiting action by Gov. Glenn Youngkin, who has until March 24 to sign or veto it. Gov. Youngkin vetoed a similar bill that passed the legislature in 2024.

Pay transparency laws have also been proposed in Indiana, Kentucky, Maine, Michigan, Missouri, Montana and West Virginia.

Recent and Upcoming Effective Dates

Pay transparency laws took effect January 1 in Illinois and Minnesota. Employers in New Jersey, Massachusetts and Vermont have until June 1, October 29 and July 1, respectively, to prepare for compliance with laws taking effect later this year.