Why Pay Transparency Matters — and Why It Shouldn’t Be Optional

Jill Hartmann
Aug 4
2 min read

Almost the single reason we all work is to make money, and yet pay is often the one thing left off a job posting. Wild, right? Job descriptions will go on about responsibilities and office culture, but not mention salary. In today’s workforce, that’s more than outdated. It’s tone-deaf.

Pay transparency isn’t just a trend. It’s becoming a legal requirement in many states, and it’s also one of the simplest, most powerful ways a company can earn trust, attract great people, and show a commitment to equity.

Where Is Pay Transparency Required?

As of mid-2025, 14 states and Washington, D.C. require some form of pay transparency in job postings or during the hiring process:

California: Employers with 15 or more employees must include salary ranges in postings. Applies to remote roles too.
Colorado: Salary range, bonus or commission structure, and benefits must all be listed in job ads.
Illinois: Starting Jan 1, 2025, employers with 15 or more employees must include pay ranges and benefits info.
Washington: All job postings must include salary info and cannot ask for prior salary history.
Connecticut, Hawaii, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Rhode Island, Vermont, and Washington D.C. also have transparency laws in place or taking effect soon.

Some cities in Ohio, including Cleveland, have enacted local ordinances too.

Want to hire remote employees across the U.S.? If even one of them lives in a transparency state, the law may apply to you.

Why Pay Transparency Works Even If It’s Not Required

1. People won’t apply without it

In a 2023 LinkedIn survey, 91% of job seekers said including a salary range impacts their decision to apply. Gen Z especially won’t waste time. In fact, 58% won’t even click “submit” without seeing pay listed.

2. It builds trust

Employees who feel fairly paid are more engaged, more productive, and more likely to stick around. Posting a clear pay range shows you respect people’s time and effort.

3. It helps close wage gaps

Transparency reduces pay inequity. Studies show it can narrow gender and racial wage gaps by 20% to 40%. When people know what fair pay looks like, they can advocate for themselves.

4. It makes your brand more attractive

Companies that post salary info show they care about fairness and openness. That’s what modern job seekers want, especially younger generations.

5. It gets you ready for future laws

Pay transparency laws are spreading fast. The earlier you get ahead of them, the easier compliance becomes and the better your hiring reputation will be.

Quick Tips for Employers

Post honest, good-faith salary ranges. No wild $40,000 to $150,000 spreads.
Include benefits when required. Think healthcare, PTO, retirement.
Stop asking for salary history. In many places, it’s now illegal.
Train your hiring teams to talk confidently about comp.
Apply your practices to remote roles too.

Bottom Line: Pay Transparency = Respect

It’s simple. If you’re hiring someone, they deserve to know what the job pays. It saves time, builds trust, and promotes fairness. At a time when every other part of work is evolving, why should pay still be a mystery?

Transparent pay isn’t just good policy. It’s good people practice.