New Salary Transparency Laws Hit 2025—And Your Job Postings Might Already Be Illegal

Real talk: If you're still posting jobs without salary ranges in 2025, you're not being strategic—you're risking legal penalties. And with 14 states plus Washington D.C. now requiring pay transparency, that "competitive salary based on experience" line isn't just outdated. It might be illegal.

Massachusetts just implemented its pay transparency law on October 29, 2025, requiring employers with 25+ employees to disclose pay ranges in job postings. New Jersey's law kicked in June 1st. Vermont's goes live in July. And Delaware's coming in 2027.

The window for playing games with compensation information is officially closed.

What Changed in 2025 (And Why You Should Care)

Here's what you need to know about the new laws taking effect this year:

Massachusetts (October 29, 2025): Employers with 25+ employees must disclose the pay range—defined as the annual salary range or hourly wage range that the employer reasonably and in good faith expects to pay—in job postings.

New Jersey (June 1, 2025): Employers with 10+ employees must disclose hourly wage or salary (or a range) plus a general description of benefits and other compensation programs in all job postings.

Vermont (July 2025): Applies to employers with 5+ employees. Must include compensation or range of compensation in job advertisements.

Illinois (Already effective January 1, 2025): Applies to employers with 15+ employees. Requires salary ranges and benefits descriptions in job postings.

Minnesota (Already effective January 1, 2025): Applies to employers with 30+ employees. Must include starting salary range or fixed pay rate in all job postings.

The plot twist? Most of these laws take effect immediately on their enforcement date—there is no buffer or grace period. If your job posting went live on October 29th in Massachusetts without a salary range, you're already non-compliant.

The States That Beat You to This

Before 2025, nine states plus D.C. already had pay transparency laws on the books: California, Colorado, Connecticut, Hawaii, Maryland, Nevada, New York, Rhode Island, and Washington.

If you're recruiting in any of these states and still hiding compensation information, you've been non-compliant for years. Congrats on the risk exposure.

What Happens If You Don't Comply (Spoiler: It's Expensive)

The penalties for ignoring these laws aren't symbolic fines—they're budget-killers:

New Jersey: Up to $300 for the first violation, $600 for each subsequent violation.

Washington: Fines ranging from $100 to $5,000 per violation.

And here's the kicker: Even if a recruiting agency posts the role or negotiates pay on your behalf, you're still liable for ensuring the job ad and process meet applicable state transparency laws. You can't outsource compliance.

Why "Competitive Salary" Doesn't Cut It Anymore

Let's be honest about what "competitive salary based on experience" always meant: "We're going to lowball you and hope you don't know your market value."

Salary transparency laws exist because wage gaps are real and information asymmetry favors employers. When candidates don't know what a role pays, they can't negotiate effectively. When employers can hide compensation until the final stages, they maintain leverage that disadvantages candidates—particularly women and minorities who already face pay disparities.

Not posting salary ranges in 2025 signals one of two things: either you're paying below market rate, or you're hoping to take advantage of candidates who don't know better. Neither is a good look.

The companies winning the talent war figured this out years ago: transparent compensation attracts better candidates, speeds up hiring, and builds trust with potential employees.

The "Open-Ended Range" Trap

Before you slap "$40,000 and up" in your job posting and call it compliant, pump the brakes. Minnesota's law expressly prohibits open-ended pay ranges, and Illinois guidance says employers should avoid phrases like "$40,000 and up" or "up to $60,000".

A compliant salary range has both a floor and a ceiling: "$80,000 - $110,000 depending on experience" works. "$80,000+" does not.

And no, you can't post a range so wide it's meaningless. "$50,000 - $150,000" might technically comply with the letter of the law, but it tells candidates nothing useful and makes you look like you're gaming the system.

What You Actually Need to Do Right Now

If you're recruiting in states with pay transparency laws, here's your compliance checklist:

Audit all active job postings: Any posting in Massachusetts, New Jersey, Vermont, Minnesota, Illinois, or any of the nine states with existing laws needs salary ranges. Today.

Update job posting templates: Build salary range requirements into your standard templates so compliance is automatic, not optional.

Train your recruiting team: HR and recruiters need to understand how to determine appropriate pay ranges, communicate compensation effectively, and meet state-specific requirements.

Establish clear compensation bands: You can't post salary ranges if you don't know what you're willing to pay. Create documented compensation structures for each role.

Review remote job postings carefully: If you're hiring remote workers, you might need to comply with transparency laws in multiple states. Colorado, for example, requires salary ranges even for remote roles if candidates can be located in Colorado.

Coordinate with recruiting agencies: If you use external recruiters, ensure their postings comply with applicable laws. You're legally responsible even if they post the job.

The Hidden Benefits of Salary Transparency

Here's what nobody tells you about pay transparency: it actually makes recruiting easier.

Fewer unqualified applicants: When candidates know the salary upfront, people outside your budget self-select out. You spend less time screening applicants who were never in your price range.

Faster hiring process: No more wasting three interview rounds before discovering the candidate wants $150K and you're budgeted for $100K. Compensation alignment happens before the first conversation.

Better candidate experience: Transparency builds trust. Candidates appreciate knowing what they're applying for instead of playing compensation guessing games.

Stronger negotiation position: When ranges are public, negotiations happen within expected parameters. You avoid candidates anchoring at unrealistic numbers because they didn't know the budget.

Improved employer brand: Companies that are transparent about compensation signal confidence in their compensation strategy. Hiding salary ranges signals the opposite.

The Bottom Line

As of 2025, 14 states plus D.C. have pay transparency laws, with more coming. If you're recruiting anywhere in the United States, there's a strong chance you're subject to these requirements.

The days of posting jobs without salary information are over. The companies still playing hide-and-seek with compensation aren't being strategic—they're risking legal penalties while creating a terrible candidate experience.

Update your job postings, establish clear compensation bands, and train your team on compliance requirements. Salary transparency isn't optional anymore. It's the law.

And honestly? It should have been standard practice all along.

Sources:

The Daily Hire