The State of Pay Transparency Laws and Salary History Bans

When can an employer ask a job applicant about how much money they’ve made at prior job roles? What information related to pay scales should an employer disclose? Across the country, legislation exists to address these questions related to salary history and pay transparency. Here’s what to know about the state of these laws today.

Salary History Bans, Explained

A salary history ban is any law that restricts an employer from making inquiries into a job applicant's existing or prior compensation. Some employers may have historically collected this information as part of the application process to assist with determinations about the compensation packages in a job offer.

What are Pay Transparency Laws?

Where salary history bans prohibit certain questions, pay transparency laws aim to furnish job applicants with more information about compensation for the open positions for which they apply. Generally, they require an employer to disclose the minimum and maximum amounts of compensation that a job role offers. Some laws also require disclosures about benefits.

A Breakdown of the States with Salary History and Pay Transparency Laws

Currently, several states have some form of salary history ban, pay transparency law, or both for private employers. Some other states, such as North Carolina, have such laws only for state government agencies. Some cities have also enacted such legislation on their own.

Let’s take a look at the landscape of statewide pay-related laws that become effective in 2025.

Illinois

Illinois employers may have discussions with job applicants about the individual's expected compensation but may not ask about their prior wages or benefits.

The state also recently enacted its own pay transparency law. Applying to employers of 15 or more people and in force as of January 1, 2025, the law requires businesses to include wage and salary ranges in its job advertisements. Such postings must also include an overall description of the types of benefits available in the job role. The law also includes new requirements for the announcement of promotional opportunities to existing employees. These announcements must generally be made within 14 days of the job being publicly posted.

Massachusetts

For years, Massachusetts has prohibited employers from seeking salary history from applicants until they have made the applicant an offer that includes compensation. Making a job offer that includes compensation also opens the door to allowing an employer to seek or validate salary history information. Employers also cannot require an applicant’s salary history meet certain criteria.

In 2024, Massachusetts took additional steps towards pay equity by passing a law requiring salary disclosures, which will enter into force on October 29, 2025. Employers of 25 or more people will have to ensure job listings feature compensation ranges. Employers must also provide pay range information on request and disclose the same information when promoting internally.

Minnesota

As of 2024, Pay history inquiries for the purposes of determining the compensation to offer an applicant have been generally off the table for Minnesota employers unless that information is part of the public record. However, even when a matter of public record, employers may not deliberately seek out records that contain such information as part of their efforts to set compensation. Employers may factor in the information an applicant provides voluntarily and without prompting, asking, or encouraging if the historical data would lead to a higher job offer.

Since January 1, 2025, employers of 30 people or more in Minnesota must comply with the state's new pay transparency laws. Job postings must include information about fixed pay rates (if they exist), a description of benefits, and the starting range for salaries. The law prohibits employers from publishing open-ended salary ranges, instead requiring specific amounts.

New Jersey

New Jersey employers can't require applicants to have a minimum or maximum prior wage as part of a job requirement, nor can employers consider pay information broadly. Fully voluntary disclosures allow employers to factor such information into their job offers.

From June 1, 2025, New Jersey will have an expanded pay transparency law in effect which covers any business who employs at least 10 people across 20 calendar weeks. The law applies to any such qualifying company engaged in employing individuals, taking job applications, or otherwise doing business. Under the law, all job postings (including internal postings for new and transfer opportunities) must include a general description of the benefits associated with the job.

All postings must include the job's stated salary or hourly wage, or a range of such figures. Consulting and temporary staffing organizations need not provide such disclosures when advertising openings that may occur in the future. Instead, they must provide salary or wage disclosures for a specifc job during interviews or at hiring. 

Vermont

An employer in Vermont can't ask for pay history or require candidates pay history meet certain criteria. Employers may only confirm pay history information a candidate voluntarily provides after making a job offer that includes compensation.

Vermont also has a pay transparency law effective beginning July 1, 2025 that applies to businesses with 5 or more employees. The law includes remote employees working primarily for an office located in Vermont. Job postings must include the role's compensation or its compensation range. Tipped jobs, such as openings for restaurant servers, must provide hourly wage information without accounting for tips. If a job is commission-based, this must be disclosed in the job posting.

Review the Law and Prepare for Compliance

Though many states have adopted some form of salary history ban, the legislative trend today has moved more towards the adoption of pay transparency laws. With several new laws coming into force in 2025, such as those in New Jersey and Massachusetts, employers face a need to evaluate their procedures and modify their approach to advertising open positions. Legislators in other states may bring forward new and related bills throughout 2025, so monitor for changes and plan accordingly to adjust procedures for compliance.

Information gathered from New 2025 Pay Transparency Laws: What Employers Need To Know | HireRight