As employers move into the second half of 2025, pay transparency continues to expand across the states. And, perhaps, enforcement is starting to keep pace with legislative activity.
Quick Hits
- Multistate employers may want to review their pay transparency compliance requirements as they move into the second half of 2025 since such laws are being actively enforced in states like New Jersey and Illinois.
- Colorado's rigorous enforcement of pay transparency laws has resulted in significant fines for employers, highlighting the importance of including accurate compensation information and meeting all posting requirements.
- New pay transparency laws in Massachusetts, Vermont, and Cleveland, Ohio, will take effect in late 2025, mandating salary disclosures in job postings and imposing penalties for noncompliance.
New Jersey and Illinois Begin Enforcement: Key Coverage Clarifications
Notably, both the New Jersey Department of Labor and Workforce Development and the Illinois Department of Labor have begun active enforcement of their new pay transparency laws. Employers may want to note that New Jersey's Department of Labor and Workforce Development has clarified its position on coverage: regardless of where a position is physically located, the New Jersey pay transparency law applies if the employer meets the minimum employee threshold and does business, employs persons, or takes applications for employment within New Jersey. This expansive interpretation means that multistate employers with any New Jersey presence may want to carefully review their job postings and internal processes for compliance, even for roles outside the state.
Similarly, Illinois continues to enforce its pay transparency requirements for employers with fifteen or more employees, regardless of where those employees are located. Illinois guidance emphasizes that the law applies to remote positions if the employer has reason to know or reasonably foresees that the work could be performed in Illinois or would report to a supervisor, office, or worksite in Illinois. Both states are actively monitoring compliance and have published guidance to help employers navigate these new obligations.
Lessons Learned: Colorado's Enforcement Actions and Citations
Colorado remains at the forefront of pay transparency enforcement, and recent citations and notices of fine issued by the Colorado Division of Labor Standards and Statistics offer important lessons for employers nationwide. The division's analysis in recent cases has focused on several recurring issues:
- Failure to Include Required Compensation Information: Employers were cited for omitting salary ranges, providing overbroad (e.g., $17.29 per hour – $41 per hour or $50,000 – $433,700 per year) or multiple ranges in a single posting, or listing ranges below applicable minimum wage or exempt salary thresholds.
- Missing Benefits and Application Deadlines: Citations were issued for postings that failed to include a general description of benefits or the required application deadline, a requirement effective January 1, 2024.
- Technical Issues Not a Defense: The division has made clear that "technical issues" or inadvertent omissions do not excuse noncompliance. Employers are expected to proactively monitor and correct postings.
- Repeat and Ongoing Violations: The division has imposed escalating fines for repeat and ongoing violations, especially where employers failed to cure deficiencies after being put on notice.
Overall, the division has found hundreds of violations, with fines assessed based on the number and severity of infractions. For example, in one case, the division determined that the employer violated the Equal Pay for Equal Work Act and its implementing rules on over 200 counts, including failures to provide compensation, benefits, and application deadlines. Fines have ranged from $1,000 to $6,000 per violation, with total penalties that have exceeded $500,000. The division has also required employers to implement compliance monitoring and reporting for a set period of time following a citation.
Coming Soon in 2025: Vermont; Cleveland, Ohio; and Massachusetts
Vermont
Vermont's pay transparency law took effect on July 1, 2025. The law applies to employers with five or more employees, at least one of whom works in Vermont. Covered employers must include the expected compensation or a good-faith range of compensation in all written advertisements for Vermont job openings, including remote jobs predominantly performed in Vermont. For commission-based or tipped positions, special disclosure rules apply. The Vermont attorney general has issued guidance. Enforcement for private employers is handled by the attorney general's Civil Rights Unit, and retaliation against individuals who exercise their rights under the law is prohibited.
Massachusetts
Massachusetts's Wage Transparency Act will become effective on October 29, 2025. Employers with twenty-five or more employees in Massachusetts must disclose pay ranges in job postings, to applicants, and to current employees upon request. The law defines "pay range" as the annual salary or hourly wage range the employer reasonably and in good faith expects to pay at the time of posting. Employers with one hundred or more employees must also submit certain EEO Data Reports to the Commonwealth annually. The law provides a warning for a first offense, with escalating fines for subsequent violations, and a two-business-day cure period for defects until October 29, 2027. The Massachusetts Attorney General's Office, which has enforcement authority over the statute, has published detailed guidance and hosted webinars to assist employers with compliance.
Cleveland, Ohio
Cleveland's new pay transparency ordinance will take effect on October 27, 2025. The ordinance applies to employers with fifteen or more employees in the city and requires salary ranges or scales to be included in job postings. It also prohibits inquiries into an applicant's salary history. The city's Fair Employment Wage Board will enforce the ordinance, and employers will have a ninety-day cure period to correct deficiencies before civil penalties up to $5,000 are imposed.
See You in 2026? Delaware: Poised to Join the Pay Transparency Movement
Delaware is set to become the latest state to enact pay transparency legislation, pending the governor's signature. House Bill (HB) 105 would require employers with more than ten employees to include salary or wage ranges and a general description of benefits in all internal and external job postings. Employers would also be required to maintain records of job descriptions and wage rates for current and former employees. The bill assigned enforcement responsibility to the Delaware Department of Labor, with written warnings for first offenses and civil penalties ranging from $2,000 to $10,000 for subsequent violations. The bill would take effect one year after enactment.
Key Takeaways
- Multistate employers may want to closely monitor evolving state and local pay transparency requirements, as coverage and enforcement are expanding rapidly.
- Proactive compliance—including regular audits of job postings, training for HR and recruiting teams, and prompt correction of deficiencies—is essential to avoid significant penalties.
- Employers may want to review state-specific guidance and enforcement trends to ensure their pay transparency practices are up to date and legally compliant.
Ogletree Deakins' Pay Equity Practice Group will continue to monitor developments and provide updates on the Multistate Compliance, Pay Equity, State Developments, and Workforce Analytics and Compliance blogs as additional information becomes available.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
