Posting Jobs? You Might Be Breaking the Law Without Knowing It
By VICKY BROWN
If you’re posting jobs the way you always have – with vague salary language or no pay information at all – it’s time to hit pause. New pay transparency laws across the U.S. are changing how businesses hire. And if you’re not paying attention, that job post could be putting your business at legal risk.
Let’s break down what’s going on, where these laws apply, and what you should be doing now – especially if you’re a small business owner without an HR team.
What Are Pay Transparency Laws?
At their core, pay transparency laws are designed to bring clarity to compensation. They require employers to share salary information either upfront in job postings or upon request. In some cases, they also require businesses to notify employees of promotion opportunities or restrict the use of prior salary history in making offers.
These laws are meant to promote fairness, reduce wage gaps, and encourage consistent pay practices. And while they may sound like something only large companies need to worry about, that’s not the case. The rules often apply based on where the job is located – or where the employee lives.
States With Pay Transparency Requirements
Here are a few key examples:
- California requires employers with 15+ employees to include salary ranges in job ads and submit annual pay data reports if they have 100+ employees.
- Colorado mandates that even businesses with just one employee in the state must post pay ranges, benefits, and promotion opportunities.
- New York enforces pay range disclosure for companies with 4+ employees if the job is located in or reports to someone in the state.
- Illinois and Minnesota will implement their own laws in January 2025, with thresholds starting at 15 and 30 employees respectively.
- New Jersey follows in June 2025, requiring disclosures from employers with 10+ employees.
Other states – including Washington, Maryland, Rhode Island, Nevada, Hawaii, Oregon, and the District of Columbia – have similar laws, each with their own twist. Some require proactive posting, others only mandate sharing ranges when asked. But the trend is clear: pay transparency is becoming the norm.
“… the trend is clear: pay transparency is becoming the norm.”
What Business Owners Need to Do
Even if your state doesn’t currently require pay transparency, you’re not off the hook. Job seekers – and your current team – are expecting it. Here’s what you should do now:
- Research Your State’s Requirements
Start by confirming whether your state (or any state where you have employees) has a transparency law. Don’t forget – if a remote job could be performed by someone in a covered state, you might still be on the hook. - Document Pay Ranges
Create consistent salary ranges for each role, even if you’re a small shop. You don’t need a fancy comp system. Just be intentional. Write down what you’re paying, and why. - Update Your Job Ads
Ditch the vague phrases like “competitive salary.” Post real numbers. Candidates are skipping over ads that don’t tell them what to expect. - Train Your Managers
If your managers are involved in interviews or offer conversations, they need to know what questions are off-limits – like asking about salary history. - Review Internal Pay Practices
If your state requires internal disclosure of promotions or pay changes, you’ll need a process. Even if not, this is a great opportunity to ensure equity in how you handle raises.
Whether you’re an entrepreneur jumping into a leadership role, a seasoned business pro with new HR responsibilities, or just starting your HR career – we’ve got the right path to guide you through your HR hurdles.
Check out the Leaders Journey Experience. This online education platform holds the LJE Masterclass, HR SimpleStart Academy and HR FuturePro Academy.
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Why This Matters for Leadership
Compliance is important – but this is bigger than that. Pay transparency reflects how you lead. When your team sees fairness in how pay is determined, it builds trust. When they don’t, it creates confusion and suspicion. And that can hurt your culture, even if you’re following the letter of the law.
Getting ahead of these changes doesn’t mean you need an HR department. It just means being clear, consistent, and willing to lead with transparency. That’s how you keep great people – and build a business that lasts.