With the current emphasis on merit-based hiring and equal employment opportunity efforts, many states are enacting pay transparency laws to help even the playing field. Established to help encourage pay equity, these laws give job seekers an idea of the wage range for a given position prior to applying. Many states have begun implementing this legislation, in hopes that it will help reduce discrepancies in compensation through added transparency. Because these laws vary in their requirements, we have been keeping tabs on which states are soon to come into play. These are the pay transparency laws set to take effect in June and July:
New Jersey – Effective June 1, 2025
Enacted on November 10, 2024, New Jersey’s new wage transparency law will go into effect on June 1, 2025, affecting employers with 10 or more employees. They will now be required to include wage ranges and a general description of benefits in job postings. In addition, employers must also make reasonable efforts to inform existing employees of opportunities for promotion. Those who violate this new law could face fines of up to $600 per violation.
See Law: Senate, No. S2310 State of New Jersey; 221st Legislature
Vermont – Effective July 1, 2025
Signed on June 4, 2024, H. 704 implements new wage transparency requirements for employers with five or more employees. These employers will be required to include a good faith wage range in all job postings for positions that will be (1) located in Vermont or (2) that will be performed remotely for an office or work location that is physically located in Vermont. This law will take effect on July 1, 2025.
Also In Effect in 2025: Massachusetts, Minnesota & Illinois
Earlier this year, Massachusetts, Minnesota, and Illinois enacted their own pay transparency laws. We encourage you to read this blog post for more details on these specific laws – and Members, feel free to download our complete state pay transparency resource in DE Connect. For additional guidance, your membership team is only an email away!
