Navigating the Pay Transparency Wave

Summary at a Glance

Employers operating or recruiting across states should monitor requirements that vary by jurisdiction, employer size, employee/applicant location, and remote work arrangements.
Employers should ensure posted ranges are based on reliable market data, internal equity, and legitimate business factors.
Employers should review job posting templates, compensation practices, internal equity, recruiter training, and documentation processes.

Pay transparency requirements continue to expand across the country, with Maine and Virginia among the latest states to enact new requirements for employers. These developments provide a timely reminder that employers should be monitoring state and local pay transparency obligations, particularly if they operate or recruit in multiple jurisdictions.

Rather than viewing these laws as isolated changes, employers should consider how the broader pay transparency trend may affect job postings, compensation practices, internal equity, and compliance processes. As more states adopt or amend pay disclosure requirements, employers should be prepared to track where these obligations apply, understand how requirements vary by jurisdiction, and evaluate whether their compensation practices are supported by consistent, objective, and well-documented processes.

Managing the Multi-State Challenge

For employers operating in multiple states, pay transparency compliance can be complex. Some states require pay ranges to be included in job postings, while others require disclosure only upon request or at certain stages of the hiring process. Requirements may also vary based on employer size, employee location, applicant location, or whether a role may be performed remotely.

Building Defensible Pay Ranges

To manage these differences, employers should consider developing a consistent process for reviewing job postings and pay disclosures before they are published. Some employers may choose to adopt a baseline approach across jurisdictions, while others may tailor postings by state. Either way, the process should be intentional, documented, and aligned with applicable requirements.

Employers should also ensure that posted pay ranges are supported by reliable compensation data and reflect how pay decisions are actually made. As compensation information becomes more visible to applicants and employees, employers may face additional questions about how ranges are determined, why employees are placed within a range, and whether internal pay practices are equitable.

As Mark DeRycke, Director of Compensation Services at HR Works, explains:

“As pay transparency requirements continue to expand, employers need pay ranges that are grounded in reliable market data and informed by legitimate business factors such as experience, geography, internal equity, and organizational structure. Well-supported ranges not only help with compliance, but also strengthen recruiting, employee trust, and compensation consistency across the organization.”

This type of review is especially important before pay information is included in job postings. As Mark further explains:

“Before publishing pay ranges, employers should review how those ranges were developed and confirm they can clearly explain and support them. Conducting a compensation review or market benchmarking assessment in advance can help identify inconsistencies, address potential equity concerns, and ensure pay practices are aligned with evolving transparency requirements.”

Stay Informed with Our Pay Transparency Toolkit

Keeping up with state pay transparency requirements can be difficult, especially as new laws are passed and existing requirements are amended. To help employers monitor these developments, HR Works has updated its interactive pay transparency map tool.

Employers can download our Pay Transparency Toolkit which includes a State Comparison Chart to identify which jurisdictions have pay transparency requirements, understand how requirements differ by state, and evaluate whether current job posting and compensation practices may need to be updated.

Recommended Next Steps for Employers

Employers should consider taking the following steps to prepare for current and upcoming pay transparency requirements:

Review Job Posting Templates. Confirm whether postings include required pay information in jurisdictions where disclosure is required.
Evaluate Compensation Practices. Ensure pay ranges are supported by current market data, internal compensation structures, and legitimate business factors.
Assess Internal Equity. Review whether employees in similar roles are paid consistently based on factors such as experience, education, performance, location, and other job-related criteria.
Train Hiring Managers and Recruiters. Ensure those involved in the hiring process understand when pay information must be disclosed and how to respond to applicant or employee questions.
Monitor State and Local Developments. Pay transparency requirements continue to evolve, and employers should regularly review updates in the jurisdictions where they operate or recruit.
Document Decision-Making. Maintain records showing how pay ranges are developed, reviewed, and updated.

How HR Works Can Help

Managing the complexities of pay transparency requires a thoughtful and consistent approach. HR Works can assist employers with compensation and compliance-related services, including:

Salary Benchmarking: We provide external compensation data to help employers set competitive and supportable pay ranges.
FLSA Testing: Our team reviews positions to help determine whether they are properly classified under applicable wage and hour requirements.
Pay Range Development: We assist with developing structured pay ranges that align with organizational needs and compensation objectives.
Pay Equity Analysis: We conduct reviews to help identify and address potential pay disparities within an organization.
Recruiting Support: We can assist in evaluating hiring workflows and job posting practices to support compliance with evolving transparency standards.