Massachusetts, Minnesota, New Jersey and Vermont have each enacted pay transparency laws which are effective in 2025 and Illinois amended its Equal Pay Act to include pay transparency requirements effective as of January 1, 2025. Enactment of pay transparency laws and equal pay laws is trending across the nation, as a means for states to address the ongoing concern of gender and minority-based pay disparities.

For example, Massachusetts’ Pay Transparency law requires employers to disclose pay ranges in job postings. The Massachusetts Equal Pay law permits employees to establish a prima facie case of pay discrimination by comparing their pay to the pay of an employee of a different gender who is performing “comparable work.”  Once a pay disparity is uncovered, an employer cannot use an employee’s salary history as a defense to the disparity. The Massachusetts Equal Pay law requires that the employer must then be able to explain the disparity on the basis of seniority, production, sales or revenue-based earnings, experience or training, merit, travel obligations, or job location.

Generally, pay transparency laws require covered employers to disclose salary or wage ranges in new job postings. In addition to disclosing salary or wage ranges, some states also require employers to include information on employee benefits and other forms of compensation beyond base pay—such as stock options or bonuses.

There are other variations between each state law that employers must be aware of. For example, under Illinois law, an employer is required to alert current employees of a new job posting when the new position would create a promotional opportunity for current employees. The employer must announce this new position opportunity within 14 days of posting an external advertisement for the position. Similarly, under New Jersey’s law, employers must make “reasonable efforts” to announce, post, or otherwise make known to current employees promotional opportunities, which must meet disclosure requirements.

Notably, Vermont’s law distinguishes between commission and non-commission-based work. The law does not require disclosure of a compensation range for commission-based work. The law only requires that the job posting disclose the role’s commission structure. For non-commission-based work, however, a job posting must include general pay disclosures regarding the compensation or compensation range for the new position.

Employers, especially those operating across several states, must ensure compliance with each state’s varying requirements under these new laws. Employers that fail to meet disclosure requirements may be subject to financial penalties.

If you have questions about pay transparency laws, please contact the authors.

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Photo of Robert Horton Robert Horton

As chair of the firm’s Labor & Employment Practice Group, Bob Horton represents management in all areas of labor and employment law. Bob’s practice consists primarily of counseling clients regarding employment issues and defending companies against all manner of employment claims throughout the…

As chair of the firm’s Labor & Employment Practice Group, Bob Horton represents management in all areas of labor and employment law. Bob’s practice consists primarily of counseling clients regarding employment issues and defending companies against all manner of employment claims throughout the U.S.

Alex Redmond

Alex Redmond represents clients in all facets of employment and labor matters, including litigation involving discrimination, harassment, wage and hour issues, and proceedings before state and federal courts and administrative agencies. In addition to her litigation practice, she advises employers on all aspects…

Alex Redmond represents clients in all facets of employment and labor matters, including litigation involving discrimination, harassment, wage and hour issues, and proceedings before state and federal courts and administrative agencies. In addition to her litigation practice, she advises employers on all aspects of employment law, including complex issues related to contract disputes, discharge, discipline, and discrimination, as well as best practices with regard to employee leave and accommodation matters under the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA), and other statutes. Alex also works closely with companies to design and draft employee handbooks and implement new policies related to the workforce.