Pay transparency continues to be a hot topic as more states enact laws requiring employers to disclose salary ranges and benefits in job descriptions. These laws aim to promote fair pay practices and reduce wage disparities, ensuring job seekers have clear expectations before applying. Several states have already implemented similar legislation, and more are set to follow in 2025.

Minnesota – Effective January 1, 2025

Minnesota’s new wage transparency law, signed on May 17, 2024, requires employers with 30 or more employees to include salary ranges and a general description of benefits in all job descriptions. Additionally, beginning October 1, 2024, covered employers must display a poster outlining employee rights under the law.

See Law: Omnibus Labor and Industry Policy Bill

Illinois – Effective January 1, 2025

Starting in 2025, Illinois employers with 15 or more employees must disclose salary ranges and benefits in job descriptions. This requirement applies to any job performed at least partially in Illinois or where the employee reports to an Illinois-based supervisor, office, or worksite.

See Law: Illinois Equal Pay Act of 2003 (IEPA), Pay Transparency Amendment | Pay Transparency resources in Illinois

Massachusetts – Effective February 1, 2025

Massachusetts is rolling out its pay transparency law in phases:

• February 1, 2025 – Employers with 100 or more employees must submit annual wage data reports to the state.
• July 31, 2025 – Employers with 25 or more employees must disclose wage ranges in job postings and provide them to employees upon request.

See Law: An Act Relative to Salary Range Transparency (H.4890) | See FAQ from the State of Massachusetts

States with Pay Transparency Laws to Take Effect in 2025

While these states have confirmed pay transparency laws taking effect in 2025, several other states are considering similar legislation. Employers should stay informed and prepare to adjust their hiring practices accordingly.

New Jersey – Effective June 1, 2025

New Jersey’s new wage transparency law applies to employers with 10 or more employees, requiring them to include salary ranges and benefits in job postings. Employers must also make reasonable efforts to notify current employees of promotion opportunities, with penalties of up to $600 per violation.

See the Bill from January 2024

Vermont – Effective July 1, 2025

Under Vermont’s new law, employers with 5 or more employees must include a good faith wage range in all job postings for positions located in Vermont or performed remotely for a Vermont-based office.

See the Bill from June 2024

How Employers Can Prepare

• Review job descriptions to ensure compliance with salary disclosure requirements.
• Update internal policies to align with new transparency laws.
• Train hiring managers and HR teams on the new regulations and requirements if you have hiring locations in those states.
• Monitor additional state legislation to stay ahead of future changes.

Pay transparency laws are reshaping the hiring process, and businesses must adapt to ensure compliance with changing regulations. If you’re a Member of DirectEmployers, see the full breakdown of states who have pay transparency laws in place in DE Connect or reach out to your Membership team for additional insights and guidance.