Across the United States, a growing number of states and cities have enacted pay transparency laws requiring employers to include salary ranges and benefits in job postings. These new laws aim to close wage gaps, reduce inequities, and give job seekers and current employees a clearer understanding of compensation.
With new mandates taking effect in Illinois, Minnesota, New Jersey, Vermont, and Massachusetts in 2025, employers are under increasing pressure to standardize and clearly communicate pay and benefits information across their organization.
This article explores recent legislation, how HR teams can stay compliant, and why a Total Rewards Communication strategy is key to navigating this shifting regulatory environment.
While there is no federal pay transparency law, many state and local governments have implemented or are planning to implement their own requirements. Here is a snapshot of some of the most recent and notable laws coming into effect in 2025:
The Pay Transparency Amendment to the Illinois Equal Pay Act of 2003, effective January 1, 2025, places a dual focus on external job postings and internal mobility. Employers with 15 or more employees must include:
● A wage or salary range
● A general description of benefits
● Other forms of compensation such as bonuses, stock options, or incentives
Importantly, this law applies to any job physically performed (at least partially) in Illinois or any remote job where the employee reports to a supervisor or office based in the state.
What sets Illinois apart is its internal promotion requirement, when a job is posted externally, employers must notify internal employees within 14 days if it represents a promotion opportunity. Employers are also required to preserve all job postings for at least five years, emphasizing the importance of strong record-keeping and consistent internal communication practices.
Minnesota’s new pay transparency requirement, part of the Omnibus Labor and Industry Policy Bill, also took effect January 1, 2025. It applies to employers with 30 or more employees and mandates that job postings include:
● The starting salary range
● A general description of all benefits, including health and retirement offerings
● A summary of any additional compensation programs
This law distinguishes itself by explicitly prohibiting vague or open-ended ranges such as “$65,000 and up.” The goal is to ensure job seekers receive meaningful, accurate information about compensation expectations, a practice that supports fair pay and equitable hiring. Although the law doesn’t clarify whether it applies to out-of-state postings, Minnesota-based employers should assume it covers any position connected to their operations in the state.
Set to take effect on June 1, 2025, New Jersey’s law applies to employers with 10 or more employees working at least 20 calendar weeks per year. It requires inclusion of:
● The hourly wage or salary range
● A general description of benefits and compensation programs
The law also introduces an expectation of internal promotion visibility, obligating employers to make “reasonable efforts” to notify existing employees about job opportunities before final decisions are made.
While the legislation does not specify if all 10 employees must reside in New Jersey, the safer approach is to apply these standards broadly across your New Jersey-based operations. The law is also silent on whether it applies to remote jobs, but employers are encouraged to err on the side of disclosure.
Effective July 1, 2025, Vermont’s H.704 applies to employers with five or more employees. It covers job ads for roles:
● Physically located in Vermont
● Performed remotely but connected to a Vermont-based office
Employers are required to list either a specific salary or compensation range, or for commission-only positions, to clearly state that the job is commission-based, without needing to disclose a range.
This flexibility for commission roles is unique among state transparency laws, yet it still ensures candidates know what type of compensation model they can expect. With a relatively low employee threshold and wide applicability, Vermont’s law is a call for smaller businesses to begin implementing structured and consistent pay communication practices.
Massachusetts’ Frances Perkins Workplace Equity Act will go into effect October 29, 2025 and applies to employers with 25 or more employees. This law mandates disclosure of pay ranges in:
● All job postings, including external and internal listings
● Offers for promotions, transfers, and role changes
Additionally, employers with 100 or more employees who are subject to federal EEO-1 reporting must now submit their EEO-1 wage data to the state. This adds an additional layer of transparency and accountability to large organizations operating in Massachusetts.
The law does not explicitly state whether it applies to jobs located outside the state, but similar laws elsewhere have set a precedent for remote roles being included when they’re connected to a Massachusetts office or supervisor.
Meeting legal requirements is critical, but it is not enough to simply list a pay range in a job description. Without proper context, employees may:
● Misinterpret the value of their total compensation
● Question pay equity or fairness
● Overlook employer-paid benefits
● Develop mistrust if compensation details are unclear or inconsistent
This is where Total Rewards Communication plays a powerful role in bridging the gap between compliance and employee trust.
A strong Total Rewards Communication strategy enhances understanding, reduces confusion, and supports compliance efforts. Here is how it helps:
Total Rewards Statements give employees a complete picture of their compensation package, including base pay, bonuses, health benefits, retirement contributions, and non-monetary perks. This context helps employees better understand the offer and their long-term value.
Ensure consistency across internal job boards, external listings, recruiter scripts, and offer letters. Centralized messaging supported by your TRS and HR tools reduces the risk of conflicting information.
Since many laws require disclosure of benefits and compensation programs, include employer-paid offerings such as mental health services, wellness stipends, learning and development programs, and paid leave. These are often undervalued by employees unless clearly communicated.
Equip managers with tools like talking points and FAQs to help them answer employee questions confidently and consistently. They are often the first point of contact for employee concerns related to pay.
Laws in several states, including Illinois, require employers to retain records of job postings for multiple years. Maintain documentation of Total Rewards Statements, job ads, and internal communication for future reference and audits.
Here are a few practical steps HR teams can take to support both legal compliance and employee understanding:
● Review and revise job postings regularly to include up-to-date salary ranges, benefits, and compensation details
● Notify current employees about promotion opportunities, especially when required by law
● Use personalized Total Rewards Statements to reinforce the full value of employment
● Provide on-demand access to compensation-related resources through employee portals or HR microsites
● Monitor legislation closely and adapt your communication plans as state laws evolve
As pay transparency laws continue to evolve across the country, HR teams are expected to lead with clarity, accuracy, and consistency. Total Rewards Communication provides a valuable framework to meet compliance standards while improving employee understanding and trust.
By investing in proactive communication strategies and leveraging tools like Total Rewards Statements, organizations can turn regulatory pressure into an opportunity to build a stronger, more transparent culture.