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A few months into 2025, pay transparency in the workplace has remained a hot button issue. Just within the last year, 14 states, including California, New York and Washington, have adopted pay transparency laws that require employers to either provide salary ranges in job postings or share salary information during the hiring process.

Along with requiring employers to share a position’s salary at the hiring stage, the new laws also require employers to disclose compensation in the context of promotions. Some of these laws give employees a private right of action against an employer who doesn’t provide pay transparency.

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Because many companies operate across several states, offer remote work roles, or are trying to attract top talent in a tight labor market, many large employers will choose to adopt uniform policies providing for pay transparency even in states where disclosures are not required.

However, industry data shows 75% of companies don’t feel ready to comply with these pay transparency laws. This leaves the door open to consequences like lawsuits, fines and loss of talented applicants. HR leaders must be aware of how these expanding laws impacting hiring practices and have a process in place to ensure compliance.

Meeting the most stringent standard vs. abiding by individual state laws

Remote roles pose a particular challenge in the context of pay transparency. If an organization is hiring for a remote position and posting open roles that may be seen by potential employees across the country, the posting must be in line with the requirements of any state in which an applicant could hold the position.

HR leaders have two options when creating a compliance policy: 

  • Track and meet the law on a state-by-state basis – create a policy that specifically addresses each state’s law to ensure compliance. Meet the most stringent pay transparency requirements regardless of where a role is located – create a uniform policy that complies with the law of the state that requires the most disclosure
The second option will be the best choice for most organizations. Tracking and meeting different requirements for each state will burdensome and costly in terms of time and resources.

Developing a policy

The best way to ensure compliance with these ever-changing pay transparency laws is to remain vigilant and educated. There’s no one-size-fits-all approach and it’s up to HR departments and compliance leaders to decide how they want to draft and enforce their policies.

Some steps to consider when developing a policy are:

  • Identify the requirements in the states where you have employees (don’t forget about remote positions) and in states where the organization may be open to hiring
  • Draft policies and ensure the language meets compliance standards 
  • Continuously monitor the law in all states for any legal changes 
  • Make the required changes to your policies as laws change 
  • Provide policies upon hire and require annual employee certification 
This area of law is constantly evolving and it’s increasingly challenging for HR leaders to keep up. A good compliance program takes both reactive and proactive approach to ensure that the organization is up to date and meets disclosure requirements in the states where the organization operates and currently has employees and in states where its next employees may be. 

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Elissa Rossi

Elissa Rossi is Traliant’s Vice President of Compliance Advisory Services. Before joining Traliant, she was an Assistant Attorney General at the New York State Attorney General’s Office and, in private practice, represented employers and employees before regulatory agencies and in state and federal court.