Pay Transparency Laws: What They Mean for You
- Carlos Stanza
- Mar 28
- 4 min read
Carlos Stanza
There was a time—not that long ago—when talking about salary was completely off the table. It was awkward, invasive, even taboo. But we’re entering a new era. Thanks to pay transparency laws, employers are starting to put salary information where it belongs: front and center. Whether you’re ready to make a move or just want to know your worth, this shift can empower you to take more control of your career journey.
In this post, I’ll break down what pay transparency laws are, why they matter, where they’re currently being enforced, and—most importantly—how they can help you make smarter, more empowered career decisions.
What Is Pay Transparency?
Pay transparency refers to the practice of openly sharing compensation information within an organization or in public-facing job descriptions. It can take many forms, including listing salary ranges in job ads, sharing internal pay bands across roles and departments, or disclosing how compensation decisions are made. The primary aim is to promote fairness and accountability in pay practices.
The concept isn’t new—but now, legislation is catching up. By enforcing transparency through law, governments are hoping to:
Reduce gender and racial wage gaps
Prevent lowballing during salary negotiations
Encourage equitable pay across roles and departments
Several U.S. states and cities have enacted pay transparency laws, and they’re quickly becoming the new standard—not just a trend.
Where Are Pay Transparency Laws in Effect?
As of 2025, several jurisdictions in the U.S. have enacted some form of pay transparency legislation, with more expected to follow. These laws vary in scope, but most require employers to disclose salary ranges in job postings or provide them upon request.
Here’s a snapshot of where pay transparency laws are currently active or on the horizon:
California – Requires employers with 15+ employees to include salary ranges in job listings. Employers must also provide the pay scale to employees upon request.
New York State – As of September 2023, most employers must include compensation ranges in job postings, promotions, and transfers.
Colorado – One of the first states to pass a comprehensive pay transparency law (in 2021), which includes detailed requirements for disclosing salary ranges and job benefits.
Washington – Requires salary ranges and a general description of benefits to be listed in job postings.
Illinois – Starting in 2025, will require employers with 15+ workers to list pay ranges and benefits in job postings.
New York City and Cincinnati – Have local laws requiring similar transparency practices.
These regulations apply to both in-state jobs and remote roles advertised to candidates living in those states, which means companies across the country are adapting their practices—even if they're based elsewhere.
Why Pay Transparency Matters
Pay transparency is a big deal—for everyone. While it clearly benefits job seekers by giving them better information upfront, it also forces companies to examine and correct internal pay disparities. Here’s why it matters:
For Employees & Job Seekers:
Clarity: You can better evaluate whether a role aligns with your expectations before you invest time applying.
Confidence: You walk into interviews or performance reviews with real data, reducing the power imbalance.
Equity: You’re less likely to be lowballed based on previous salary history or negotiation hesitance.
For Employers:
Attract better talent: Being transparent shows integrity and attracts candidates who value fairness.
Improve internal equity: Transparent systems reveal gaps and help create a culture of accountability.
Reduce turnover: Employees who understand how and why they’re paid are more likely to stay.
Having experienced both vague and transparent job postings, I can tell you this: knowing the range changes everything. It sets the tone for an honest, upfront relationship between candidate and company—and makes you feel respected from day one.
What Pay Transparency Means for You
Here’s how pay transparency can directly affect your career planning, salary expectations, and negotiation strategy:
You Can Benchmark Your Current Salary More Accurately
With ranges listed publicly, you can compare your compensation to others in similar roles across industries, regions, and companies. This is crucial when deciding if you’re fairly paid—or if it’s time to negotiate or move on.
You Gain Negotiation Power
No more guessing games. With a known range, you avoid lowballing yourself or anchoring too low. Instead, you can position yourself toward the top of the range by articulating your unique value and experience.
You Can Identify Risky or Vague Employers
Companies that still withhold salary info—or post absurdly wide ranges (e.g., $45K–$130K)—may be signaling a lack of transparency in other parts of the business. Pay attention to how open and consistent they are throughout the hiring process.
You Can Advocate for Change Internally
If your state or company isn’t required to disclose salaries yet, you can be the one to spark the conversation. Encourage leadership to consider internal pay audits, publish salary bands, or educate managers on compensation equity. Your voice matters.
How to Use Pay Transparency to Your Advantage
Here are four steps you can take right now to leverage pay transparency laws and trends in your favor:
Audit Your Current Compensation
Use salary comparison sites (like Glassdoor, Payscale, LinkedIn Salary, and Salary.com) and analyze current job listings in your field.
Look for roles that match your responsibilities—not just your title.
Build Your Case
Document your accomplishments, contributions, leadership wins, and anything else that sets you apart. If you discover you’re underpaid, come prepared with data and a strategy.
Update Your Résumé and Online Presence
Make sure your résumé reflects quantifiable results, up-to-date skills, and aligns with roles in your target compensation range.
Start the Conversation
Whether you’re job searching or asking for a raise, open the dialogue with confidence. Transparency isn’t just legal—it’s increasingly expected.
Need help positioning yourself for the pay you deserve? Get a free, personalized resume review. Email carlos@resumefin.com for expert assistance in presenting your value clearly and confidently.
Works Cited
California Department of Industrial Relations. “Pay Transparency Requirements.” State of California – Department of Industrial Relations. www.dir.ca.gov. Accessed March 2025.
Colorado Department of Labor and Employment. “Equal Pay Transparency Rules.” Colorado Department of Labor and Employment. https://cdle.colorado.gov. Accessed March 2025.
New York State Department of Labor. “Salary Transparency Law.” New York State DOL. https://dol.ny.gov. Accessed March 2025.
Washington State Department of Labor & Industries. “Wage Transparency Laws.” Washington L&I. https://lni.wa.gov. Accessed March 2025.
Society for Human Resource Management (SHRM). “Pay Transparency Laws: What HR Needs to Know.” SHRM.org. www.shrm.org. Accessed March 2025.
Harvard Business Review. “What Pay Transparency Really Means.” Harvard Business Review. https://hbr.org/2022/12/what-pay-transparency-really-means. Accessed March 2025.
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