Hunton Retail Law Resource

Pay transparency laws, which require employers to include pay information in job postings, have been on the rise. Colorado and California enacted such laws in 2021 and 2023 respectively.  In 2025, several states have decided to join California and Colorado by enacting or expanding pay transparency laws.

Pay transparency laws require the disclosure of details regarding pay and benefits of a position within a job posting. The precise contours of the requirements vary by state, but generally, a good faith range of what the employer would be willing to pay for the position is required. Several laws also prohibit employers from asking questions regarding a candidate’s previous salary.

Here are pay transparency updates from 2025 that retailers need to be aware of moving into 2026:

• California has amended its pay transparency law to include new definitions. “Pay scale” is now defined as a “good faith estimate of the salary or hourly range that the employer reasonably expects to pay for the position upon hire.” This change was designed to eliminate the option for an employer to provide an overly broad range of what someone in that position may make over time, and it instead requires the employer to publish the range that the new hire will receive when they begin.  This change takes effect January 1, 2026.
• Delaware’s governor signed a pay transparency law in September of 2025 that requires employers to include a “minimum to maximum pay range for the position, set in good faith by reference to any applicable pay scale, previously determined range for the position, the actual range of others currently holding equivalent positions, or the budgeted amount for the position.” The law goes into effect on September 26, 2027.
• Massachusetts’ pay transparency law was expanded effective October 29, 2025 to require employers with 25 or more employees to include a good-faith pay range in all job postings, promotions and transfers.
• New Jersey’s pay transparency law went into effect on June 1, 2025. It requires employers to include a good faith salary range and a general description of benefits in job postings. New Jersey employers must also notify current employees about any promotional opportunities that are advertised internally or externally prior to making a promotion decision.
• Vermont enacted a pay transparency law on July 1, 2025. Vermont’s law explicitly applies to remote workers noting that the pay transparency requirements apply to postings where the employee is physically located in Vermont, or remote positions that will predominately perform work for a Vermont office.
• Washington amended its pay transparency law in 2025 to provide employers a five-business-day grace period to correct a non-compliant job posting after receiving notice.

As the new year approaches, now is a good time for retailers to take stock of recent pay transparency law developments to ensure their postings are in compliance in the jurisdictions in which they operate.  The patchwork of laws across states can make compliance difficult. This is especially true for job postings that solicit remote employees or postings that cover multiple jurisdictions.