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Wednesday, January 22, 2025

Ensure Compliance with New State Pay Transparency Laws in 2025 - SHRM

As 2025 begins, multistate employers should be aware of several states where employers will now be required to include salary ranges in job postings. In 2025, new pay transparency laws have taken effect or will take effect in five states: Illinois, Minnesota, New Jersey, Vermont, and Massachusetts. What do multistate employers need to know about these new laws, and what steps do they need to take to ensure compliance?

Illinois

Effective Jan. 1, Illinois’ pay transparency law requires employers with at least 15 employees to include “pay scale and benefits” in job postings. “Pay scale and benefits” is defined as “the wage or salary, or the wage or salary range, and a general description of the benefits and other compensation, including, but not limited to, bonuses, stock options, or other incentives the employer reasonably expects in good faith to offer for the position.”

Minnesota

Effective Jan. 1, Minnesota’s pay transparency law requires employers with 30 or more employees in Minnesota to provide salary ranges and general descriptions of benefits in job postings. Specifically, qualifying employers must disclose “in each posting for each job opening with the employer the starting salary range, and a general description of all of the benefits and other compensation.” Employers may also list a fixed pay rate.

New Jersey

Effective June 1, New Jersey’s pay transparency law will require employers to provide in each posting for new jobs or transfer opportunities the “hourly...



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