Introduction

Pay transparency is becoming a standard requirement for businesses across the United States. In 2025, new laws in several states will require employers to disclose salary ranges and benefits in job postings. While these regulations aim to promote fair compensation and reduce wage gaps, they also present compliance challenges for businesses—especially those operating in multiple states.

At BNX Business Advisors, we specialize in helping companies navigate complex regulatory landscapes. This guide provides a detailed breakdown of state-specific pay transparency laws, a compliance checklist for employers, and strategies for multi-state businesses to stay ahead of these changes.

State-by-State Breakdown of Pay Transparency Requirements (2025)

Several states have passed new laws that take effect in 2025. Below is a summary of the key requirements in each state:

1. Illinois

• Effective Date: January 1, 2025
• Who’s Affected: Employers with 15+ employees
• Key Requirements:
  • Job postings must include a salary or wage range.
  • Employers must provide a general description of benefits, including bonuses and stock options.

2. Minnesota

• Effective Date: January 1, 2025
• Who’s Affected: Employers with 30+ employees in Minnesota
• Key Requirements:
  • Job postings must disclose a salary range or fixed pay rate.
  • A general description of benefits must be included in job postings.

3. New Jersey

• Effective Date: June 1, 2025
• Who’s Affected: Employers with at least 10 employees working for 20+ weeks
• Key Requirements:
  • Employers must include salary details and a general benefits description in job postings.
  • Companies must inform employees of promotional opportunities before making a hiring decision.

4. Vermont

• Effective Date: July 1, 2025
• Who’s Affected: Employers with 5+ employees
• Key Requirements:
  • Job postings must include salary ranges.
  • Employers hiring for commission-based roles must disclose the commission structure.
  • Tipped positions must include the base wage in job ads.

5. Massachusetts

• Effective Date: October 29, 2025
• Who’s Affected: Employers with 25+ employees
• Key Requirements:
  • Employers must disclose salary ranges in all job postings.
  • If using a third-party recruiter, the recruiter must comply with the transparency requirements.
  • Current employees can request salary range disclosures for their roles.

These laws follow similar regulations already in effect in states like California, Colorado, and Washington. As more states adopt pay transparency policies, businesses must be proactive in their compliance efforts.

Compliance Checklist for Business Owners

To prepare for these changes, employers should take the following steps:

 Review Existing Compensation Structures

• Conduct a salary audit to ensure internal pay equity.
• Align pay structures with market rates.

 Update Job Postings

• Clearly define salary ranges for each role.
• Include a general description of benefits and incentives.

 Develop Internal Pay Policies

• Establish guidelines for salary disclosure to employees.
• Create communication plans for discussing pay decisions with candidates and staff.

 Train HR and Hiring Teams

• Educate recruiters and managers on pay transparency laws.
• Ensure hiring managers are prepared to answer salary-related questions.

 Monitor State-Specific Compliance Requirements

• Stay updated on evolving pay transparency laws.
• Adapt policies to comply with different state regulations.

 Prepare for Pay Equity Audits

• Regularly review pay data to identify disparities.
• Implement corrective actions as needed.

By following this checklist, businesses can reduce compliance risks and create a fairer, more transparent compensation system.

Navigating Compliance for Multi-State Businesses

For companies operating in multiple states, complying with different pay transparency laws can be complex. Here’s how businesses can streamline their approach:

1. Adopt the Strictest Standard Across All Locations

Rather than managing different policies for each state, businesses can implement the most comprehensive pay transparency requirements company-wide. For example, if one state requires full salary disclosure in job postings, applying that standard to all locations ensures uniformity.

2. Implement a Centralized Compensation Policy

A centralized compensation framework ensures consistency while allowing for location-specific adjustments. Companies should:

• Define company-wide salary bands for each role.
• Set clear guidelines on when and how salary ranges are disclosed.

3. Use Technology to Manage Compliance

Investing in HR technology can help businesses track pay ranges, monitor job postings, and ensure compliance across multiple states. Tools like applicant tracking systems (ATS) and payroll software can automate compliance reporting.

4. Consult Compliance Experts

Partnering with HR and legal consultants ensures businesses stay compliant with evolving regulations.

How BNX Business Advisors Can Help

BNX Business Advisors provides customized compliance solutions to help businesses navigate pay transparency laws while maintaining competitive and sustainable compensation practices.

Our services include:

• Compliance Audits: Assessing pay structures and job postings for regulatory compliance.
• Salary Benchmarking: Ensuring salary ranges are competitive within industry standards.
• Multi-State Compliance Strategy: Developing scalable solutions for businesses operating in multiple jurisdictions.
• HR Training & Policy Development: Equipping HR teams with the knowledge and tools to implement pay transparency effectively.

By working with BNX Business Advisors, companies can turn compliance into a strategic advantage—enhancing employer branding, attracting top talent, and fostering a culture of trust.

Conclusion

As pay transparency laws continue to expand, businesses must be proactive in their compliance efforts. By understanding state-specific requirements, following best practices, and implementing strategic pay policies, companies can stay ahead of regulatory changes while strengthening their workforce.

BNX Business Advisors is here to help businesses navigate these changes with confidence. Contact us today for expert guidance on pay transparency compliance and compensation strategy.