Labor & Employment Law Update

Compliance with pay transparency laws is no longer as simple as adding a salary range to a job posting and moving on. As state pay transparency requirements and compliance obligations continue to expand nationwide, regulators are increasingly focused on whether employers’ disclosures are meaningful, accurate, and supported by actual compensation practices.

The shift from disclosure to accountability was a central theme in our recent webcast, Pay Transparency 2.0: Navigating Pay Equity, AI Disclosure, & the Next Wave of Compliance. Below are key takeaways from the discussion with an emphasis on how employers can comply with new and changing pay transparency laws.

Pay Transparency Compliance Is No Longer About Checking a Box

One of the biggest trends in labor and employment law is the rapid expansion of pay transparency laws across the country. Eighteen states and Washington, D.C. have enacted statewide requirements and additional jurisdictions continue to adopt similar measures.

The more important trend for employers to take note of, however, is how the laws are evolving. Recent legislative changes and enforcement activity show that regulators are looking beyond basic disclosure requirements. Increasingly, pay transparency laws incorporate concepts such as good-faith pay ranges, benefits disclosures, promotion-notice obligations, record retention requirements, and enhanced enforcement authority.

In other words, compliance is becoming less about what appears in a posting and more about whether an employer's compensation practices can withstand scrutiny.

Why Good-Faith Pay Ranges Matter for Transparency Compliance

Perhaps the clearest example of this shift is the growing emphasis on good-faith pay ranges.

Regulators are increasingly focusing on whether a listed salary range actually reflects what the employer expects to pay. Consider a posting that lists a salary range of $45,000 to $150,000 for a position. While the posting technically includes a range, it may provide little useful information to applicants about the compensation they can realistically expect.

Similarly, a posting with an advertised range of $80,000 to $120,000 may raise questions if the employer has no intention of offering more than $100,000 under any circumstances.

Employers should expect increasing scrutiny of compensation ranges that appear disconnected from actual hiring practices.

Pay Transparency Compliance Checklist for Employers

As pay transparency laws continue to evolve, employers should take the opportunity to evaluate whether their current processes align with the new compliance landscape. Employers can:

• Review job posting templates. Many employers still rely on legacy templates that contain phrases such as "salary commensurate with experience" or "competitive salary." Regular template reviews can help identify language that may no longer satisfy emerging pay transparency requirements.
• Verify recruiter and job-board compliance. Pay transparency obligations do not disappear when a third party posts a job. Employers should ensure recruiters, staffing agencies, and job boards consistently receive and publish required compensation and benefits information.
• Audit salary ranges for good-faith accuracy. Employers should confirm that posted compensation ranges reflect what the organization is actually willing to pay. The goal is not simply to publish a range, but to publish one that accurately represents hiring expectations.
• Confirm promotion-notice process. Some pay transparency laws require employers to notify current employees of internal promotional opportunities within a defined timeframe. Employers should confirm they have a reliable, consistent process for issuing any required internal promotion notices.

The future of pay transparency compliance is not about posting more information. It is about posting information that is accurate, defensible, and consistent with actual business practices.

As lawmakers and regulators continue to refine pay transparency requirements, employers should view compliance as part of a broader compensation strategy rather than a standalone posting obligation.

For a deeper discussion of emerging trends, common employer pitfalls, and practical compliance strategies, watch the full recording of our Pay Transparency 2.0 webcast.