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Pay Transparency Laws By State: An Employer’s Guide for 2026

  • 6 min. Read
  • Last Updated: 09/15/2026
Employers looking at state laws on laptop

A growing number of states have implemented pay transparency laws that require employers to disclose compensation information for specific roles to employees and applicants. These mean that you must stay on top of city and state requirements, employee thresholds that vary, remote-role triggers that pull out-of-state employers into a covered state's rules, and requirements that extend to internal promotions and transfers.

Keeping track of a different rule in every state is a real burden, especially when you're hiring across multiple locations. Because laws differ from state to state and sometimes by city, posting a single job opening may require checking requirements in several jurisdictions before it goes live. Getting it wrong carries high costs, including lawsuits and per-violation fines ranging from a few hundred dollars to $10,000. Noncompliant job posts can also damage your reputation with potential candidates.

In this guide, we’ll help you navigate the specifics of pay transparency laws, the categories they fall into, where each state stands as of August 2026, and what noncompliance will cost you.

What Are Pay Transparency Laws?

Pay transparency laws, also called salary transparency laws, are state and local rules requiring employers to disclose compensation information to job applicants, current employees, or both. Depending on the jurisdiction, disclosure may mean stating a salary range in a job posting or providing a pay scale on request.

What Do Pay Transparency Laws Actually Require of Employers?

Pay transparency laws require clear communication of compensation information with employees and job candidates. Many employers are under the impression that pay transparency laws only affect active employees. In practice, however, coverage extends to job applicants via job postings, current employees seeking promotions or transfers, and in several states, remote workers who work in other locations.

Pay equity requirements typically fall into three categories: pay rate or range disclosure in job postings, disclosure upon request, and pay history bans.

Pay Range Disclosure in Job Postings

Employers in states that require pay disclosures in job postings must include a pay rate or a good-faith minimum and maximum pay range in every job ad. Some states also require a description of benefits, bonus structures, or other compensation alongside the range.

Required disclosures often extend beyond external job ads to include internal postings, promotions, and transfers. This catches many employers off guard, since most compliance efforts focus on recruiting rather than internal mobility. The range also has to be realistic. A posting that lists a placeholder such as "$15 to $1,000 per hour" or "$55,000 and up" is unlikely to satisfy a good-faith standard, since it doesn't reflect what the employer actually expects to pay.

Disclosure Upon Request

Some states don't require a posted range but do require employers to provide the pay scale for a position when a candidate or employee asks, including current employees asking about their own role. This request-based disclosure is nearly universal even among the states that already require posted ranges. During the hiring process, the requirement typically applies before an offer is made or at another defined point.

Pay History Bans

Pay history bans prohibit employers from asking candidates about their current pay or prior compensation or using that history to create an offer. These bans are legally distinct from pay transparency requirements, but some states package them into the same pay equity statute.

How These Laws Apply to Remote Roles

Remote roles are covered under a state's pay transparency law when the position could be performed from that state, or typically when it reports to a supervisor, office, or worksite located there. A law may apply even if the employee never works from that state in person.

For example, a posting for a remote role that reports to a supervisor or office in New York must include a pay range, regardless of where the employee actually works. However, if the supervisor works remotely from New York while the company's leadership and offices sit elsewhere, that alone doesn't trigger the requirement. Illinois’s pay transparency law covers any role performed at least in part in Illinois or reporting to a supervisor, office, or worksite there.

The practical takeaway for multi-state employers is that if a remote posting could reasonably attract an applicant who'd be based in or report to a covered state, treat that state's rules as applicable.

Pay Transparency Laws by State: 2026 Overview

As of August 2026, 17 states plus Washington, D.C. have enacted pay transparency requirements, with Delaware’s law set to take effect in September 2027. Here’s a side-by-side comparison of requirements in those jurisdictions.

StateLawEffective DateEmployee ThresholdDisclosure RequiredRemote CoveragePenalty Range
CaliforniaEqual Pay Act (SB 1162, amended by SB 642)Jan 1, 2023 (SB 1162); Jan 1, 2026 (SB 642)15+Posting, upon requestYes, if position performed in CA$100–$10,000 per violation; pay data reporting violations penalized at $100/employee (1st) and $200/employee (subsequent)
ColoradoEqual Pay for Equal Work ActJan 1, 2021All employersPosting, benefits, promotion notice, salary history banYes, if position could be performed in CO$500–$10,000 per violation
Connecticut

Public Act 21-30; amended byHB 5003

Oct 1, 2021(original); Oct 1,2026 (HB 5003)All employersUpon request, salary history banYes, if position performed in CTNo set penalty; private right of action (compensatory + punitive damages, attorney's fees)
DelawareHB 105Sept 26, 202725+ (more than 25)Posting, benefitsYes, for DE-based remote positionsWarning (1st), then $2,000–$10,000
District of ColumbiaWage Transparency Omnibus Amendment ActJune 30, 2024All employers (1+)Posting, salary history banYes, if position performed in DC$1,000 (1st violation), $5,000 (2nd), $20,000 (subsequent)
HawaiiAct 203January 1, 202450+PostingYes, if position performed in HICivil actions and damages through the Hawaii Civil Rights Commission
IllinoisHB 3129 (amends Equal Pay Act), implementing rules at 56 Ill. Adm. Code Part 320Jan 1, 202515+Posting, benefits, promotion noticeYes, if performed in IL or reports to IL supervisorA cure period, followed by $250 (inactive posts) or $500 (active posts) - 1st; $2,500 - 2nd; $10,000 - subsequent
MaineLD 54July 29, 202610+Posting, upon requestNot stated$100 - $500 per violation
MarylandEqual Pay for Equal Work – Wage Range TransparencyOct 1, 2024All employersPosting, benefits, salary history banYes, if position performed in MDWarning (1st violation); $300 (2nd violation); $600 (subsequent)
MassachusettsAn Act Relative to Salary Range TransparencyOct 29, 202525+Posting, upon requestYes, if primary place of work is MAWarning (1st violation); $500 (2nd violation); $1,000 (3rd violation);up to $25,000 (subsequent violations)
MinnesotaSF 3852Jan 1, 202530+Posting, benefitsYes, if position performed in MNPenalty not specified; enforced by MN Department of Labor and Industry
NevadaSB 293Oct 1, 2021All employersUpon request (after interview), salary history banYes, if position performed in NVUp to $5,000 per violation
New JerseyS2310June 1, 202510+Posting, benefits, promotion noticeYes, if position performed in NJ$300 (1st) / $600 (subsequent)
New YorkLabor Law § 194-BSept 17, 20234+Posting, salary history banYes, if reports to NY supervisor, office, or worksite$1,000 (1st violation); $2,000 (2nd violation); $3,000 (3rd violation)
Rhode IslandPay Equity ActJan 1, 2023All employersUpon request, salary history banYes, if position performed in RIup to $1,000 (1st violation), up to $2,500 (one prior violation in 5 years), up to $5,000 (two prior violations in 7 years); private right of action
VermontH.704July 1, 20255+Posting, salary history banYes, if position performed in VTAttorney General or State Attorney’s Office enforcement
VirginiaHB 636 / SB 215July 1, 2026All employersPosting, salary history banYes, if position performed in VAPrivate right of action + AG enforcement; civil penalties up to $1,000 (1st violation); up to $5,000 (subsequent)
WashingtonEqual Pay and Opportunities ActJan 1, 202315+Posting, benefitsYes, if position could be performed in WA$100–$5,000 per violation (statutory) + actual damages, attorney's fees

See state resources for your business.

Penalties for Noncompliance

Penalties for pay transparency violations range from a first-offense warning or cure period to $10,000 per violation or tiered civil penalties, depending on the state. Noncompliance may also risk litigation in addition to monetary penalties. Penalties vary widely in structure, not just amount. A few states stand out:

Beyond legal exposure, noncompliant postings carry a reputational cost. Missing or unrealistic pay ranges are flagged publicly on job boards and social media, which can impact your recruiting efforts.

States With the Most Stringent Requirements

Some states have more detailed requirements than others, and multi-state employers often look to their guidelines as a starting point for building compliance templates. The following states can serve as benchmarks for establishing comprehensive policies.

California

California's law is one of the most detailed in the country, and SB 642 made it stricter for 2026 by tightening the good-faith range standard and extending the window employees have to file a claim.

  • Good-Faith Pay Scale: SB 1162 requires employers with 15 or more employees to include a good-faith pay scale in every job posting.
  • Reasonable Expectation at Time of Hire: SB 642 tightens the definition of a good-faith pay scale to mean the range an employer reasonably expects to pay at the time of hire.
  • Six-Year Claim Window: SB 642 also extends the recovery period for violations to six years, giving employees a longer window to bring a claim.
  • Pay Data Reports for Larger Businesses: Employers with 100 or more employees have a separate obligation to submit pay data reports to the Civil Rights Department, in addition to the posting requirement.

Colorado

Colorado was among the first states to act, and its Equal Pay for Equal Work Act applies to every employer regardless of size, with obligations that reach beyond job postings into internal promotions.

  • Equal Pay for Equal Work: The Equal Pay for Equal Work Act requires employers to offer equal pay for substantially similar roles, regardless of applicant gender or wage history. The requirement applies to all employers, regardless of size.
  • Pay Range and Benefits Disclosure: Every job posting must include the pay range, a general description of all benefits, and any other compensation offered, including incentive compensation.
  • Internal Notifications: Employers must notify existing employees of promotional opportunities before filling the role.

Illinois

Illinois folded pay transparency into its longstanding Equal Pay Act through HB 3129, and its rules stand out for how far they reach into remote roles.

  • Pay Transparency: Illinois HB 3129 introduced an amendment to the Illinois Equal Pay Act of 2003 requiring employers with 15 or more employees to include pay scales and a general description of benefits in every job post.
  • Remote Coverage: Coverage extends to remote roles that could be performed in Illinois, or that report to a supervisor, office, or worksite located there.
  • Penalty Tiers: Based on employer size and violation history.

New York

New York covers the widest range of employers of any state, applies to promotions and transfers alongside new hires, and layers a separate New York City ordinance on top of the statewide rule.

  • Lower Employer Thresholds: New York's transparency provisions in the law apply to private employers with four or more employees, the lowest threshold of any state.
  • Compensation Ranges: Postings must include a compensation range for jobs, promotions, and transfers, including commission-only roles, which can be labeled as such rather than given a numeric range.
  • Remote Coverage: Pay transparency applies to remote roles that report to a supervisor or office located in New York, even if the employee never works from the state.
  • New York City: New York City runs a separate local ordinance with its own, additional requirements.

Washington

Washington stands out for its private right of action, which lets applicants and employees sue directly over noncompliant postings and has exposed employers to significant litigation.

  • The Equal Pay and Opportunities Act (EPOA): Washington’s EPOA requires disclosure of pay ranges, wage scales, and general benefit descriptions. It applies to employers with 15 or more employees.
  • Private Right of Action: Washington allows a private right of action, exposing employers to lawsuits from applicants and employees for noncompliant job postings.

New and Emerging Laws and Local Ordinances to Watch

Additional pay transparency laws are in development in several states, with requirements taking effect recently or soon. In some cases, laws are already on the books at the local level. Employers should track these laws and ordinances to ensure compliance.

  • Maine: Effective July 29, 2026, applying to employers with 10 or more employees.
  • Virginia: Effective July 1, 2026.
  • Massachusetts: Effective October 29, 2025, for employers with 25 or more employees.
  • Delaware: Signed in 2025, effective September 2027 for employers with more than 25 employees.
  • Local ordinances: New York City, Jersey City, Cincinnati, Columbus, Cleveland, Toledo, and Ithaca all maintain their own pay transparency requirements, separate from any statewide law.
  • Ohio: No statewide law, but four of its largest cities (Cincinnati, Columbus, Cleveland, and Toledo) have enacted local requirements.

Pay Transparency Compliance Checklist for Employers

Pay transparency laws are complex, and keeping up with a different set of rules in every state can be challenging. Use this checklist to help ensure job postings are compliant before they go live, and revisit it any time you expand into a new state.

  1. Map your compliance footprint. List every jurisdiction where you have employees, contractors, or applicants, including remote workers. Include states where a remote role could reasonably be performed, not just where your offices are located.
  2. Identify state triggers. For each jurisdiction, identify the disclosure category and the employee threshold that triggers coverage. Posting disclosure, upon-request disclosure, and pay history bans each have their own triggers, and thresholds range from all employers to those with a stated minimum of employees.
  3. Audit posting templates. Evaluate current job posting templates for a minimum–maximum pay range, benefits summary, bonus and commission language, and a documented good-faith basis for the range.
  4. Adopt strictest baseline. For ease of administration, you may want to set the strictest applicable state's requirements as your baseline template. This reduces the amount of per-jurisdiction customization needed for multi-state postings.
  5. Cover promotions and transfers. Update internal posting language for promotions and transfers where the state requires it. Colorado, New York, Illinois, New Jersey and others extend disclosure obligations beyond external job ads.
  6. Ban pay history questions. Remove pay history questions from applications, and train recruiters and hiring managers on compliant interviewing. This addresses the most common source of inadvertent violations.
  7. Document pay range decisions. Keep records for how you determined each pay range. Retention requirements vary by state and now run up to six years under California's SB 642.
  8. Assign a compliance owner. Designate an HR representative or legal counsel to monitor legislative updates and review this checklist quarterly. New state and city laws have taken effect every year since 2021, and 2026 alone brought updates in California, Maine, Virginia and others.

Elevate Pay Transparency Compliance With Paychex

Staying compliant across a patchwork of state and city pay transparency laws takes more than manual checks. Paychex offers AI-enabled HR compliance software, powered by SixFifty, that monitors federal, state, and local law changes and alerts you when requirements shift. It also helps you generate employee handbooks and HR documents tailored to the states where your employees work, helps you keep that policy language current as laws change, and provides state-specific checklists to help you hire confidently in any jurisdiction.

Whether you're posting your first pay range or expanding into a new state, Paychex can help you build a compliance process that helps manage multi-state complexity and scales with your business.

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Key Takeaways

  • Pay transparency laws vary by state, and sometimes by city, so compliance depends on where your postings and employees are located.
  • Pay equity laws generally fall into three categories: pay rate or range disclosure in job postings, disclosure upon request, and salary history bans. Many states require more than one of these.
  • Many state pay transparency laws apply to internal promotions and transfers. They may also include remote roles, depending on where a supervisor, office, or applicant is located.
  • Noncompliance carries financial and legal risk, including civil penalties and, in some states, the ability for employees or applicants to sue directly.
  • Use a compliance checklist to help ensure each job posting is compliant before it goes live.

* This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up-to-date.