We get this question all the time: 'I know my state requires posting job salaries, or I want to do it as a best practice, but how do I balance that with the pay structure for my current employees?' It's a tricky balance. You don't want to hide anything or undervalue your team, but the reality is that skill, experience, merit, and performance often lead to different pay grades.
So, how do you find a solution that works for both attracting new candidates and keeping your existing employees feeling valued? We’re here to share some insights on how our best-in-class clients successfully manage this balance.
Which States Require Pay Transparency?
As pay transparency laws continue to evolve, understanding which states require disclosure of salary ranges and other compensation details is essential to staying compliant. Here's a breakdown of the states that currently have or will soon implement pay transparency requirements (updated March 2025):
- California: As of January 1, 2023, employers with 15 or more employees (at least one working in California - whether remote or in-person) must include salary ranges in job postings. Employers must also disclose salary ranges to current employees upon request.
- Colorado: Since January 1, 2021 (updated January 1, 2024), employers must disclose salary ranges, benefits, bonuses, and commissions in job postings. This requirement applies to all employers with at least one employee in Colorado. Employers must also provide salary information for all job opportunities, not just promotions, and notify employees of job openings within the company.
- Connecticut: Since October 1, 2021, employers with at least one employee must provide salary ranges when requested by job applicants or current employees, or before making an offer of compensation. Employers must also disclose salary information for positions when employees change roles within the company.
- Hawaii: Starting January 1, 2024, employers with at least 50 employees must include a salary range in job postings, reflecting what the employer expects to pay for the position.
- Illinois: Starting January 1, 2025, Illinois employers with 15 or more employees must disclose the wage range, along with a description of benefits (such as bonuses, stock options, and other compensation) in job postings. This applies to positions that will be performed in Illinois or by employees reporting to an Illinois supervisor or office. Employers must also notify current employees about job postings that present promotion opportunities within 14 days.
- Maryland: As of October 1, 2020, employers must provide a wage scale to job applicants upon request.
- Minnesota: Effective January 1, 2025, employers with 30 or more employees in Minnesota must disclose salary ranges and a general description of benefits and other compensation in job postings.
- Massachusetts: Beginning October 29, 2025, Massachusetts employers with 25 or more employees must disclose pay ranges in job postings. This law also applies when offering promotions, transfers, or new positions with different responsibilities.
- Nevada: As of October 1, 2021, employers must provide salary information to applicants and current employees seeking promotions or internal transfers.
- New Jersey: Effective June 1, 2025, New Jersey employers with 10 or more employees must include salary ranges and benefits details in job postings. Employers must also make efforts to announce promotion opportunities to current employees before making promotion decisions.
- New York: Effective September 17, 2023, all employers with four or more employees must include salary ranges in job postings for positions that can or will be performed in New York. This includes remote jobs that can be performed in the state or reports to a supervisor/office in New York.
- Ohio: Starting March 13, 2020, employers in Cincinnati and Toledo, Ohio must include compensation information in job ads, focusing primarily on positions that have remote or hybrid options. Employers must disclose salary ranges to applicants upon request after extending a job offer.
- Rhode Island: Since January 1, 2023, employers must disclose salary ranges for applicants and current employees when requested, either before discussing compensation or before employees move to a new role.
- Vermont: Effective July 2025, Vermont will require employers with 5 or more employees to include compensation or a range of compensation in job ads. For roles that are commission-based, employers only need to indicate that the position is commission-based and need not disclose specific compensation details.
- Washington: Effective January 1, 2023, employers with 15 or more employees must include salary ranges in job postings, as well as a description of benefits and other compensation (such as bonuses, stock options, and commissions). If employees request it, salary ranges must also be disclosed for internal job transfers and promotions. The law applies to any company that hires Washington-based employees, even if the company is located outside the state.
- States Considering Pay Transparency: Several states have proposed pay transparency laws that are not yet effective, including Alaska (bill proposed in 2021), District of Columbia (bill proposed in 2023), Kentucky (bill proposed in 2023), Maine (bill proposed in 2023), Michigan (bill pending), Missouri (bill proposed in 2023), Montana (bill proposed in 2023), New Jersey (advancement of current legislation pending), Oregon (bill proposed in 2023), South Dakota (bill proposed in 2023), Vermont (bill proposed in 2023), Virginia (bill proposed in 2023), and West Virginia (bill proposed in 2023).
- States Without Pay Transparency Laws: The following states currently do not have pay transparency laws in place with no bills under consideration: Alabama, Arizona, Arkansas, Delaware, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Nebraska, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, and Wyoming.
You can reference SHRM or Rippling for full details on the specific pay transparency laws required in your state. Failing to comply with these laws can result in fines or penalties, which vary by state and can be as high as $10,000 per violation.
Important Note: If you're posting a job that could be available to candidates in any of these states—whether it’s a regional role or a nationwide position—you are required to include the salary range in the job posting to meet these legal requirements.
Understanding these requirements not only helps you avoid potential legal pitfalls but also provides a competitive advantage in attracting top talent, as candidates increasingly expect transparency when evaluating new opportunities.
Why Pay Transparency is a Best Practice
As pay transparency legislation grows and job seekers demand more clarity, 86% of Americans now expect salary ranges to be disclosed in job descriptions (Talker Research). his trend isn’t just about compliance—it’s a practice that builds trust and boosts applicant confidence. By providing clear, transparent pay information, you foster a sense of fairness and openness, which can significantly enhance your employer brand.
Transparency also ensures that your compensation practices align with your values and position you as a company that cares about equity, attracting the best talent in the market. Furthermore, it can help with employee retention by creating an open environment where your team members know how their compensation fits within the broader structure, reducing internal inequities.
5 Ways to Balance Pay Transparency and Internal Equity
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Conduct an Internal Pay Equity Evaluation
One of the most important steps in managing pay transparency is conducting an internal pay equity evaluation. This process ensures that you're paying employees fairly based on their value to the company—not overpaying, and equally, not underpaying them. Balancing internal equity with external competitiveness is key. This isn’t just about keeping your employees happy; it’s also about being strategic for your business.
Hoops’ Market Insights Reports can help with this by providing Salary Benchmarking information, ensuring your compensation structure aligns with the market rate while considering the value each employee brings to the table. This report helps you avoid internal/external biases, ensuring fairness without overextending your budget.
Pro Tip: Starting with accurate data is crucial. Issues with internal equity often arise from inaccurate data or unverified assumptions. For example, overpaying new hires can create tension if it’s perceived as inconsistent with current compensation levels. Market Insights can help you avoid this by providing accurate industry benchmarks to guide your compensation strategy. - Start with Internal Conversations Before Posting Jobs
Before posting any new job openings, it's crucial to ensure your internal team is on the same page. Consider your quarterly or monthly employee/team reviews—do you discuss salary, bonuses, or pay raises during this time? If not, it’s time to make it a part of the conversation.
When you discuss performance, make sure you clearly explain how compensation corresponds to the employee’s efforts—whether it's their experience, certifications, skills, or work output. This proactive communication not only helps employees understand how they’ve earned their salary but also reinforces that pay is tied to merit. It ensures trust and mutual understanding internally, making it easier to manage external transparency later. - Be Transparent When Posting New Jobs at Higher Salaries
If you're posting a new position with a higher salary than others in similar roles, transparency is key. It’s important to have an honest conversation with your internal team about why the new salary is higher. Is it because the position requires more years of experience, specific certifications, or a more senior role? Make sure to clearly communicate these reasons to your team to avoid any misunderstandings or resentment.
Another important point: If you’re hiring at a higher level, is there an opportunity to promote internally and backfill the position? This can create a win-win situation—your employees feel valued, and you can hire at a lower level, saving money on the salary for the new hire.
Ultimately, it’s again about transparency—explaining why the role is posted at a different pay grade and how the salary reflects the level of responsibility. As long as you’re open and clear, most people will understand. But if you leave this information unaddressed, it could lead to resentment and increased turnover. - Train Hiring Teams to Be Ready to Discuss Pay
Ensure your hiring teams are fully prepared to discuss pay and benefits during the interview process. Equip them with knowledge about how compensation is determined at your organization and provide clear guidelines on how to address questions about salaries. Hiring managers and HR professionals should be ready to confidently explain the reasoning behind salary ranges, bonuses, and benefits packages.
Properly training your team on how to handle compensation discussions not only promotes transparency but also fosters trust with candidates and ensures everyone is on the same page during the recruitment process. - Continuously Leverage Market Data
To ensure your compensation strategy aligns with industry standards and remains competitive, always leverage market data. Pay trends can fluctuate, and it’s important to have accurate and up-to-date information on what similar companies are offering. Hoops' Market Insights Reports provide salary benchmarking and comprehensive market analysis, which can guide you in setting competitive salaries while avoiding the risk of overpaying or underpaying.
I cannot emphasize enough the importance of starting with solid data. Issues with internal equity often arise from inaccurate data or assumptions made without verification. It’s very possible that you may be over-paying new hires, which can create internal tension when compared to existing staff. While Hoops’ market analysis reports offer a valuable industry baseline, keep in mind that the best data comes from the top talent actively applying to your jobs. Paying attention to what candidates are asking for can help guide your compensation package decisions and keep your pay structure competitive.
By using both industry data and real-time applicant insights, you can make informed decisions that balance fairness and competitiveness, ensuring your company stays ahead in attracting top talent.
Conclusion: The Impact of a Positive Balance
Balancing pay transparency with internal equity can be tricky, but it’s essential for attracting top talent while maintaining fairness within your team. By implementing a consultative approach, conducting regular pay audits, and maintaining open communication, you can navigate this balance effectively. With the right tools, such as Hoops’ Market Insights Reports and a clear compensation strategy, you’ll be able to align both your internal and external pay practices for better business results.
Pay transparency isn’t just about compliance—it’s a best practice that builds trust, improves retention, and sets your company apart as an employer of choice.
Looking for continued guidance in navigating these discussions? Hoops has an experienced team ready to assist every step of the way. Or if you'd like to learn more about how Hoops’ Market Insights Reports can help you benchmark salaries and make data-driven decisions, reach out to us today!
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