Estimated reading time: 18 minutes

Key Takeaways

• Pay transparency laws are reshaping hiring by requiring greater openness about compensation and limiting how employers use past pay in hiring decisions.

• In many states, employers must disclose a salary range in job postings — check state law and stay current as rules expand and change.

• Many places prohibit salary history inquiries; asking or relying on them can be illegal, with fines and other penalties for noncompliance.

• When an employer must disclose salary range, that typically means posting a good-faith pay range (and sometimes benefits) in job ads or providing it at a defined stage of hiring.

• Salary history bans and posting rules work together to reduce wage gaps, increase fairness and trust, and improve recruiting outcomes.

• If you face unequal pay issues, learn how the Equal Pay Act of 1963 applies and how an equal pay lawyer evaluates wage discrimination claims.

Table of Contents

• Introduction

• Overview of Pay Transparency Laws

• Employer Obligations: Must Employers Disclose Salary Range?

• Salary History Inquiry: Can Employer Ask Salary History?

• How Pay Transparency and Salary History Bans Protect Job Seekers

• Practical Advice for Job Seekers

• Practical Advice for Employers

• Resources & Further Reading

• Conclusion

• FAQ

Introduction

Pay transparency laws are reshaping hiring by requiring greater openness about compensation and limiting how employers use past pay in hiring decisions. In many jurisdictions an employer must disclose salary range at specific points, and more places are banning questions about prior pay.

Define pay transparency laws as statutory or regulatory rules that require employers to disclose salary ranges or other compensation details to candidates or employees at specified points in the hiring process, and/or prohibit reliance on applicants’ prior pay (see state-by-state overviews from Rippling and GovDocs).

This guide answers the three questions job seekers and employers ask most:

• Must employers post salary ranges?

• Can employer ask salary history?

• How do salary history bans and pay-transparency laws protect job seekers?

We synthesize practical requirements and trends from compliance-focused summaries and business impact analyses that track how transparency rules evolve and why they matter to both candidates and organizations.

Overview of Pay Transparency Laws

Pay transparency laws typically require employers to disclose pay ranges (either in job listings, when requested, or at offer), require transparency in total compensation (salary + benefits), and in many jurisdictions include a salary history ban to prevent reliance on past wages. For current scope and differences, consult the comprehensive summaries from Rippling’s state-by-state guide and GovDocs’ statutory overview.

Why policymakers adopted these rules:

• Reduce wage gaps by preventing past pay from anchoring offers. When employers cannot ask or rely on salary history, offers better reflect market value instead of outdated or biased pay.

• Promote fairness and trust between employers and candidates. Clear ranges help candidates self-assess fit and reduce suspicion around opaque pay decisions.

• Improve market efficiency and applicant quality by setting clear expectations. Organizations report stronger applicant pools and smoother negotiations when ranges appear in job ads.

A major component is the salary history ban, a growing legal trend that decouples offers from prior pay to reduce the risk that historic underpayment follows workers between jobs. For context on how salary history restrictions fit with posting rules and timing requirements, see Rippling’s analysis.

Transparency also aligns with long-standing equal pay protections. If you believe you are underpaid relative to peers performing substantially similar work, review federal protections under the Equal Pay Act of 1963 and explore options with an equal pay lawyer.

Employer Obligations: Must Employers Disclose Salary Range?

When we say an “employer must disclose salary range,” we mean the employer is legally required—by state or local statute—to include a good-faith salary range or pay scale (sometimes total compensation) in job postings or at a specified point in the hiring process.

In many jurisdictions, state salary range posting laws mandate disclosure in public job ads for roles tied to the location; others require disclosure when a candidate asks, after an interview, or by the time an offer is made. Some laws apply only to employers that meet a minimum size threshold (for example, 5+, 10+, 15+, 25+, or 30+ employees). Because scopes, timing, and thresholds vary, consult regularly updated summaries from Rippling and GovDocs.

Common variations in posting requirements

• Public job postings must include a good-faith salary range (some also require benefits disclosure) for positions performed in or tied to the jurisdiction.

• Disclosure on request: some laws require employers to provide a pay range when an applicant asks, after an initial interview, or upon request from employees seeking promotion or transfer.

• Timing-based rules: disclosure before or at the time of a job offer if not posted earlier.

• Employer size thresholds: smaller thresholds (e.g., 5+ employees) capture more employers; larger thresholds (e.g., 30+) narrow coverage. Always check local law.

States and effective dates: examples

The table below summarizes several 2025 additions and highlights. Requirements change; verify details in the cited sources and local ordinances.

Other states with notable pay transparency laws include California, Colorado, Connecticut, New York, Rhode Island, and Washington. Effective dates, employer-size thresholds, and the scope of disclosure (job ad vs. upon request vs. at offer) differ by jurisdiction. For a broader map of current state salary range posting laws, see HRMorning’s state-by-state overview and Rippling’s guide to evolving requirements.

State spotlight: Illinois and New Jersey

Illinois requires employers to include a good-faith pay scale and benefits in job postings for covered employers starting January 1, 2025, signaling a trend toward fuller compensation disclosure in job ads (JDXpert’s 2025 preview; GovDocs summary). New Jersey’s 2025 law similarly requires salary ranges in postings for many employers, reflecting momentum toward public, front-end disclosure (JDXpert).

Example job ad language

• Transparent posting: “Salary: $70,000–$85,000 per year (plus benefits including health insurance, 401(k) match, and 15 days PTO).”

• Flexible posting: “Salary range for this role is $70k–$90k depending on experience and location.”

Ranges should be in good faith and reflect what the employer reasonably expects to pay for the role. In jurisdictions with reasonableness standards, avoid intentionally broad or misleading ranges (for example, $30k–$200k). When a law specifies timing instead of posting, disclose by the required stage. When in doubt about state salary range posting laws, review statutory summaries or check Rippling’s state-by-state guide.

Benefits and risks of transparency

• Employer benefits: stronger applicant pools, fewer drop-offs, improved trust, and reduced litigation risk when compliant (JDXpert’s business impact analysis).

• Noncompliance risks: fines, penalties, potential litigation, and reputational harm (GovDocs).

Transparency also complements anti-discrimination obligations. If pay disparities persist even after compliance, employees can consider options under federal discrimination laws and the Equal Pay Act of 1963.

Salary History Inquiry: Can Employer Ask Salary History?

Traditionally, employers asked about salary history to benchmark offers. Increasingly, jurisdictions prohibit asking about or using salary history in hiring decisions, reflecting a shift away from past-pay anchoring toward market-based compensation practices (Rippling).

What is a salary history ban?

Define “salary history ban” as a statutory prohibition that prevents employers from requesting, requiring, or considering an applicant’s previous wages, salary, or benefits when making hiring or compensation decisions. See Rippling’s guide for details and jurisdictional nuances.

Legal landscape and variations

• Multiple states and localities either ban asking about salary history or ban both asking and considering prior pay in decisions (Rippling; GovDocs).

• Common differences:

  • Ban on asking: employers cannot ask, but may still need to avoid relying on volunteered info depending on the jurisdiction.

  • Ban on asking and using: prohibits both the question and any reliance on prior pay.

  • Coverage thresholds: some bans apply only above an employer-size threshold. Always check local law.

These rules interact with other pre-employment limits, like restrictions on medical or disability questions. For related guidance on what can be asked and when, see our overview of pre-employment medical exam rights.

Practical examples for employers

• Do: Ask about salary expectations or desired range for the role; present the posted salary range and ask the candidate if it’s acceptable.

• Don’t: Ask “How much did you make at X company?” or “What is your current base salary?” This is illegal where a salary history inquiry is illegal.

• Alternative screening questions (use verbatim):

  • “What are your salary expectations for this role?”

  • “What total compensation range are you targeting, including bonuses and equity?”

Practical examples for candidates

• If asked where banned: “I’m not able to share past salary information. I’m looking for roles in the $X–$Y range based on market value and this role’s responsibilities.”

• If unsure about local law: “I prefer to focus on the salary range for this role; can you share where the hiring team landed on this?”

These shifts exist because salary-history reliance can perpetuate wage gaps. For the policy rationale and adoption trends, see Rippling and compliance coverage from GovDocs.

How Pay Transparency and Salary History Bans Protect Job Seekers

These laws address specific problems and create concrete protections for applicants and employees.

Mechanisms that improve fairness

Salary history bans prevent employers from anchoring offers to a candidate’s past pay, which otherwise can perpetuate historical underpayment.

Posting salary ranges sets expectations so candidates know whether to apply and can negotiate from a level playing field.

Transparency promotes wage equity by making it easier to spot and correct gender- and race-based pay gaps.

Short vignettes

Job seeker: A candidate in a lower-paid previous role is offered a market-rate salary because the employer posted and used a market-based salary range.

Employer: A firm reduces time-to-hire and improves offer acceptance rates after listing pay ranges publicly.

Together, these measures create a fairer and more competitive hiring process while advancing wage equity across the labor market (JDXpert’s market impact analysis; Rippling’s legal overview).

Practical Advice for Job Seekers

Step-by-step checklist

• Check whether your state or city has pay transparency or salary history ban laws before interviews. Start with Rippling’s state-by-state guide and GovDocs’ summaries.

• If asked for salary history where it’s banned, politely decline and reroute. Script: “I’m not comfortable sharing prior salary; my target range for this role is $X–$Y.” For junior roles, consider $45k–$60k; for mid-level $70k–$100k; for senior $120k–$170k+ (adjust for market and industry).

• Use posted salary ranges to research market rates and calibrate negotiation. Data sources include Glassdoor, PayScale, and Levels.fyi (tech and equity comps).

• If no range is posted, ask: “Can you share the salary range for this role so I can determine fit?”

• Prepare evidence-based negotiation points: recent market comps, relevant achievements, metrics of impact, specialized skills, and competing offers (when appropriate to disclose).

• Keep a record of what was posted and discussed. Screenshots of the job ad and notes from conversations can help if offers fall below posted ranges.

• Know adjacent rights during hiring. For example, understand your workplace privacy rights and limits on pre-offer inquiries through pre-employment medical exam rules.

Candidate scripts and language

• “Can you tell me the salary range for this position?”

• “I’m targeting $X–$Y based on market research; is that within the range for this role?”

• If pressed for history where banned: “In my jurisdiction, salary history inquiries are restricted; I’d prefer to discuss expectations for this role.”

If you suspect low pay is tied to bias or a pattern of unequal pay for substantially similar work, review your remedies under federal law, including the Equal Pay Act of 1963 guide, and consider speaking with an equal pay lawyer.

Practical Advice for Employers

Compliance checklist

• Audit where your job postings are published and ensure salary ranges are added where required by state law. Track updates using Rippling’s tracker and GovDocs’ compliance summaries.

• Update job requisition templates and your ATS to capture the posted salary range, the basis for the range, and location-based pay differentials.

• Train recruiters and hiring managers to avoid salary history questions and to ask for salary expectations instead. Use the do/don’t scripts above in interview training.

• Standardize offers to include a clear base-pay figure plus a breakdown of total compensation (bonuses, equity, benefits) consistent with any posting.

• Document the rationale behind ranges and offers (market data, internal leveling) and review for equity regularly.

• Consult counsel to align overlapping state and local rules and to confirm how remote or multi-location roles are covered.

Job posting templates

• Required disclosure style: “Salary range: $XX,XXX–$YY,YYY annually. Benefits: medical/dental/vision, 401(k) matching, PTO, etc.”

• Candidate-friendly style: “Estimated salary or salary range: $XX–$YY (based on experience and location).”

Avoid overly broad ranges in jurisdictions with good-faith requirements and keep job-leveling consistent. If internal policies require a posted range, make sure it matches what HR and hiring managers discuss with candidates.

Internal policy language

Copy-ready clause: “Our company complies with applicable pay transparency laws and does not request or rely on applicants’ salary history unless permitted by law. Recruiters must ask for salary expectations rather than prior compensation.”

For related compliance areas—like screening tools and background checks—ensure you understand anti-bias rules governing algorithmic hiring. For more on these risks, see our guide to AI hiring discrimination and automated decision-making.

Resources & Further Reading

Use these authoritative, regularly updated guides to confirm timing, thresholds, and scope across jurisdictions:

• Rippling state-by-state guide (comprehensive summaries and updates on pay transparency laws)

• GovDocs pay transparency laws (statutory summaries and compliance guidance)

• JDXpert’s 2025 analysis (business impacts, benefits, and compliance planning)

• HRMorning’s state-by-state overview (broad survey of state salary range posting laws)

Conclusion

Pay transparency laws are expanding: in many jurisdictions employers must disclose salary ranges and many have banned salary history inquiries. These rules protect job seekers, promote wage equity, and require employers to update hiring practices. Check local laws and consult counsel to ensure compliance. If you’re a job seeker, check your state’s rules and use the sample scripts above. If you’re an employer, run a compliance audit and train recruiters now.

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FAQ

Must employers post salary ranges?

It depends on state and local law. Some jurisdictions require salary ranges in job ads, while others require disclosure upon request or by the time of an offer. Verify your location’s requirements using Rippling’s state-by-state guide and GovDocs’ compliance summary. In 2025, several new states (e.g., Illinois, Minnesota, New Jersey, Vermont, Massachusetts) add posting duties.

Can an employer ask my salary history?

In many jurisdictions, no. Salary history bans make it illegal to ask about or rely on past pay, though specifics vary. If you’re unsure, ask the employer whether they are subject to a local ban and redirect to expectations. For coverage and differences, see Rippling and GovDocs.

What should I do if asked about my salary history?

Use a polite redirect: “I’m not able to share past salary information. I’m targeting $X–$Y based on market research and this role’s responsibilities.” If the question may be unlawful, note that local rules restrict such inquiries and shift to expectations. For background on why these bans exist, see Rippling’s guide.

Which states require posting salary ranges?

Requirements evolve and differ by scope, timing, and employer size. Notable states include California, Colorado, Connecticut, New York, Rhode Island, and Washington, with more joining in 2025 (Illinois, Minnesota, New Jersey, Vermont, Massachusetts). For current details, consult HRMorning’s overview, Rippling’s tracker, and GovDocs.

Why do transparency laws exist?

Policymakers aim to reduce wage gaps, promote fairness and trust, and improve recruiting efficiency. Public pay ranges help candidates self-select and negotiate, while bans on salary history prevent underpayment from following workers between jobs. For empirical and business impacts, see JDXpert’s analysis and Rippling’s overview.