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What pay-transparency laws changed in their first five years

Salary-range mandates now cover roughly a quarter of US workers, and the early research associates them with small average pay shifts and simpler, flatter pay structures.

By Malik Johnson · 3 min read · Illustration credited

Since Colorado enacted the first broad salary-range posting mandate effective in 2021, at least ten states and several major cities have followed, bringing range-disclosure rules within reach of roughly a quarter of the U.S. labor force, per tracking by the Harvard Law School Forum and state labor-department summaries. The early economic research associates the mandates with modest average pay effects and a documented restructuring of how firms set pay — per economist Zoe Cullen's Harvard Business School research published in 2024, transparency requirements shifted employers toward simpler, more standardized pay structures. This is an evidence review, not career or legal advice.

The laws differ in reach — posting requirements, applicant rights, employee discussion rights — and those differences shape what the data can and cannot say. What follows separates the documented effects from the open questions.

Which jurisdictions require salary ranges, and since when?

The documented sequence, per each state's own labor-department publications:

JurisdictionEffectiveCore requirement
Colorado2021Ranges in all job postings, promotion disclosures
New York CityNovember 2022Ranges in postings for city employers, then statewide in 2023
California2023Ranges in postings; pay-data reporting by large employers
Washington2023Ranges in postings, internal transparency duties
Illinois, and others2025Posting-range mandates extending coverage further

Federal law already protected the right to discuss pay — the National Labor Relations Act has covered pay conversation among co-workers since 1935, as the National Labor Relations Board's published guidance states. The state laws add the posting layer: information delivered before anyone applies.

What did the research actually find?

Two findings with caveats attached. First, on pay levels: Cullen's research on the Colorado mandate associates posting requirements with a small average increase in posted pay alongside compression — individual bargaining leverage falls while standardized pay rises, with the effects netting out differently across the wage distribution. Second, on job architecture: the same research documents employers simplifying pay structures in response, because a range anyone can see is a range that must be defensible.

What the research has not established: whether the laws close gender or racial pay gaps overall. The Bureau of Labor Statistics' full-time weekly earnings series shows the women's-to-men's earnings ratio hovering in the mid-80s percent range for years, with no clear transparency-driven break visible yet in the federal series, as of the BLS's 2024 releases. The gap did not close. It moved.

What can an individual worker do with these laws?

A four-step sequence, information only, with each step's legal basis stated:

  1. In mandate states, treat the posted range as usable market data — it is employer-reported and legally required, per each state's labor department guidance.
  2. Anywhere, exercise the long-standing right to discuss pay with co-workers, protected federally since 1935, per the NLRB.
  3. In pay-data-reporting states like California, look for the employer filings — large companies must report demographic pay data, per the state's Civil Rights Department.
  4. Where no mandate exists, use mandate-state postings for comparable roles as a documented benchmark.

What stays open

Enforcement varies — penalties are small relative to payroll, and posting compliance is uneven, as state enforcement summaries document. Remote work scrambles jurisdiction, with multi-state employers applying different rules to identical roles. And the strongest documented effect so far is structural: pay is easier to see, which was always the point. Whether visibility compounds into narrower gaps is a question the next five years of data — not the next press release — will answer.

Sources

  1. Bureau of Labor Statistics, weekly earnings series