A pay transparency law requires employers to share pay information, most often a good faith pay range in job ads, to applicants on request or to current employees. Rules differ by state, city and country, so recruiters check where the job and the candidate are.
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A law requiring pay ranges in job ads or on request. Rules differ by state and city, so check where the job and the candidate are.
In the US, pay transparency is mostly state and local law. Colorado, California, Washington, New York, Illinois and several others require pay ranges in postings, and some cities such as New York City have their own rules. Coverage often depends on employer size, where the work is done and whether a remote role could be filled by someone in that state. Some laws also require a description of benefits or say employers must not retaliate against workers who discuss pay.
Outside the US, the EU Pay Transparency Directive requires member states to give applicants the right to pay information before an interview or offer and bans asking about pay history. Its transposition deadline was June 2026, so national laws are rolling out now.
These laws apply to third party recruiters too. Agencies posting jobs for clients are often responsible for including the range. This page explains the general idea and is not legal advice.
Why it matters to recruiters
Fines and complaints are real, but the bigger practical effect is on your funnel. Candidates now expect pay in the ad and skip roles that hide it. Recruiters who build ranges into every intake avoid compliance trouble, reduce late stage offer failures and show clients they understand current hiring rules across states.
An example from a recruiting desk
A Texas client asks an agency recruiter to post a remote sales role. Because the job could be done from Colorado or New York, she asks the client for a good faith range before posting. The client agrees 70,000 to 85,000 plus commission, and the ad states that range, the commission plan and a summary of benefits.
Tips that help
Add a pay range field to your intake form so no req opens without one.
Treat remote roles as covered by every state where a hire could live.
Keep a record of how each range was set in case it is ever questioned.
Use the AI hiring law checker and official state labor department pages to confirm current rules.
Mistakes to avoid
Assuming the law only applies to the client, when agencies posting the job may also be covered.
Posting a range in one place and a different number on another board.
Frequently asked questions
Which states have pay transparency laws?
The list keeps growing. Colorado, California, Washington, New York, Illinois, Maryland, Hawaii, Minnesota, Vermont, Massachusetts and New Jersey are among those with posting or disclosure rules, plus some cities. Always check each state labor department for the current law before posting.
Do pay transparency laws apply to remote jobs?
Often yes. Many laws cover roles that could be performed in the state, even if the employer is based elsewhere. If a remote role is open to people in a covered state, the safest approach is to include a compliant range.
What counts as a good faith pay range?
It is the range the employer honestly expects to pay for the role at the time of posting. A range stretched far wider than real offers to look attractive may break the law. Check each law's own wording and guidance.
