Pay Transparency Remains Priority for States

A legacy of the #MeToo Movement has been an increased focus nationwide on pay transparency.

Pay transparency laws are perhaps most often thought of as requirements that employers disclose compensation figures to promote fairness and reduce pay disparities due to gender, race or ethnicity, a theme of #MeToo.

Fourteen states — California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Rhode Island, Vermont and Washington – have enacted pay transparency laws of this kind. [For details about each state law on compensation disclosure requirements in job postings, see Pay Disclosure and Transparency Requirements for Job Postings State and Local Law Survey (Private Employers)].

But that’s not the only type of pay transparency law in the country. States have also passed salary history bans that bar employers from asking job applicants about their past or current pay, information that could also contribute to pay disparities between the genders.

Nineteen states – Alabama, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nevada, New Jersey, New York, Oregon, Rhode Island, Vermont and  Washington – have such laws. (For information about each state law on pay history inquiry bans, see Salary History Inquiry Ban State and Local Law Survey.)

Pay Transparency Bills Introduced in Half Dozen States

This year lawmakers in at least six states have introduced bills dealing with pay transparency, according to the LexisNexis State Net legislative tracking system. Delaware enacted such a measure.

Recent State Pay Transparency Legislation

The most recent state pay transparency bill requiring employers to share clear pay information was signed into law by Delaware Gov. Matt Meyer (D) in late September. It takes effect September 26, 2027.

“Inequities in pay in Delaware are real,” Meyer said in a press release announcing the signing.

According to the LexisNexis® State Net® data, two pay transparency bills are still pending heading into 2026: Maine HB 18 by Rep. Amy Roeder (D), which would require employers to disclose pay ranges, and Iowa SB 187 by Sen. Janet Petersen (D), which would ban employers from implementing rules that prevent their employees from disclosing information about their pay. (For information on all state laws banning employers from prohibiting employees from discussing pay, see Wage Transparency State Law Survey: Bans on Employers Preventing Employees from Discussing Their Pay).

“As the U.S. approaches 2026, salary transparency has shifted from a progressive workplace trend to a national hiring expectation,” wrote Operations Assistant April Taylor for the executive search and outplacement firm Davron in late November. “With more states adopting pay-range disclosure laws — and several preparing new legislation — companies must rethink how they advertise jobs, structure compensation, and communicate pay equity.”

Local Jurisdictions Also Tackling Issue

Pay transparency laws are not limited just to the state level. Several local jurisdictions have pay transparency laws on the books as well.

The District of Columbia has enacted both a pay transparency law and a salary history inquiry ban. The cities of Philadelphia, Toledo and Cincinnati also have salary history bans, while New York City has a particularly wide-ranging pay transparency law. (For information on all local pay transparency laws, see Pay Disclosure and Transparency Requirements for Job Postings State and Local Law Survey (Private Employers) and Salary History Inquiry Ban State and Local Law Survey).

According to State Net® data, Prince George’s County in Maryland and Jersey City in New Jersey have pay transparency ordinances as well, and a pay transparency ordinance just took effect in the city of Cleveland in late October.

“The Cleveland pay transparency law follows a growing trend across Ohio aimed at promoting fair and equitable hiring practices,” the law firm Brennan Manna Diamond wrote in an October “Client Alert.” “While Cleveland has not yet gone as far as other jurisdictions, it may eventually take a similar approach to Colorado, which has become a national leader in pay transparency. In 2024, the Colorado Department of Labor and Employment adopted the Interpretive Notice & Formal Opinion (“INFO”) #9A, which requires any employer with at least one employee within the state to include, in good faith, a reasonable pay range in every job posting. Cleveland’s new law could represent an early step towards adopting a similar comprehensive transparency standard in the future.”

More Pay Transparency Laws Could Come in 2026

Elias Kahn, senior product manager for labor and employment, tax, federal government and employee benefits and executive compensation for Practical Guidance at LexisNexis®, who spoke with SNCJ about pay transparency and gender-related pay disparities in 2023, said all forms of pay transparency laws will remain relevant into the coming year.

“I could definitely see other states or cities passing laws like this in 2026,” he said. “It has been a big deal for several years now,” he added, noting pay transparency is not a brand new trend.

As is often the case with issues like this that are being tackled on a state-by-state or jurisdiction-by-jurisdiction basis, it can be challenging for employers to navigate the patchwork of laws, regulations and ordinances. Kahn recommended that in-house counsel for employers focus most on employee eligibility and exemptions, required information disclosures and triggering events to make compliance more manageable.

Practical Guidance has also put together a comprehensive Pay Transparency and Disclosure Requirements Compliance Checklist for addressing pay transparency issues, which suggests practical steps for employers, including, among other things, conducting regular compensation reviews and audits, establishing salary ranges and educating managers on pay transparency issues.

“Pay disclosure requirements will continue to proliferate and there may soon be similar legislation across many more states and localities,” the checklist concludes.

Kahn said this is a good time for employers to engage in salary benchmarking so they can set pay ranges that are in line with competitors in their industry.

The bottom line, he said, is that with policymakers’ continued interest in pay transparency, employers will need to consistently stay on top of compensation disclosure developments.

“The issue is not going away,” Kahn said.

—By SNCJ Correspondent BRIAN JOSEPH

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