Salary Transparency: Laws, Benefits, and Finding Open Companies
The practice of openly sharing salary information, either through public pay ranges in job postings, internal salary bands, or full disclosure of all employee compensation, increasingly required by law in many jurisdictions.
Salary transparency is the practice of openly disclosing compensation information to job candidates and employees. This can range from posting salary ranges in job listings to sharing complete pay data across an organization. As of 2026, numerous states and countries have enacted laws requiring employers to include salary ranges in job postings, making pay transparency a standard practice rather than a competitive differentiator. This shift helps job seekers make informed decisions, reduces wage gaps, and promotes pay equity across demographics.
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- Legal mandate expanding rapidly: As of 2026, over 10 U.S. states and the European Union require salary ranges in job postings, with more jurisdictions adding laws annually
- High adoption among remote companies: Nearly 70% of remote-first companies now include salary ranges in job postings, even when not legally required
- Reduces wage gaps: Research shows salary transparency reduces gender pay gaps by 20-40% and helps address racial pay disparities
- Candidate expectations: 85% of job seekers say they’re more likely to apply to positions with posted salary ranges
- Internal transparency varies: While external posting requirements are common, only 30% of companies share internal salary bands with current employees
Salary Transparency Laws
Salary transparency legislation has rapidly expanded across the United States and globally. Understanding where these laws apply helps both job seekers and employers navigate compensation discussions.
United States Laws
Colorado (Effective January 2021) Colorado was the first state to require salary ranges in all job postings. Employers must include minimum and maximum compensation, plus a general description of benefits and other compensation. The law applies to all positions that could be performed in Colorado, including remote roles.
New York City (Effective November 2022) NYC requires employers with 4+ employees to include minimum and maximum salary in job advertisements. The law covers positions that will or can be performed in New York City, whether from an office, in the field, or remotely.
California (Effective January 2023) California’s SB 1162 requires employers with 15+ employees to include pay scales in job postings. Additionally, employers with 100+ employees must submit annual pay data reports to the state, broken down by race, ethnicity, and sex within job categories.
Washington (Effective January 2023) Washington state requires salary ranges and benefits descriptions in job postings. Employers must also disclose salary ranges to current employees when they’re hired, change positions, or request the information.
Additional States Rhode Island, Connecticut, Maryland, Nevada, and several other states have enacted various forms of salary transparency laws, ranging from disclosure upon request to mandatory posting requirements.
European Union
The EU Pay Transparency Directive, adopted in 2023 and being implemented through 2026, requires employers to provide pay information to job applicants before interviews and prohibits asking candidates about their salary history. Member states are implementing these requirements with varying timelines and specific provisions.
International Trends
Countries including the United Kingdom, Australia, and Canada are actively considering or implementing salary transparency legislation at national or regional levels.
Benefits for Job Seekers
Salary transparency fundamentally changes the job search process, providing several key advantages:
Saves time and reduces frustration No more investing hours in applications and interviews only to discover the salary is below your requirements. Transparent ranges let you filter opportunities before applying.
Strengthens negotiation position When you know the full salary range, you can negotiate from an informed position. Understanding where an offer falls within the band helps you advocate for higher compensation.
Reduces discrimination Transparency helps combat pay discrimination based on gender, race, age, or previous salary. When ranges are public, employers face pressure to justify their offers within consistent frameworks.
Enables better career planning Seeing salary ranges across different companies, roles, and experience levels helps you understand market rates and plan career moves strategically.
Reveals company culture How a company approaches salary transparency often reflects broader cultural values around equity, fairness, and employee respect. Wide, vague ranges might signal less mature compensation practices.
How Companies Implement Salary Transparency
Companies approach transparency differently based on their philosophy and legal requirements:
Level 1: Disclose upon request - Minimum compliance where required, sharing ranges only when candidates or employees ask directly.
Level 2: Post ranges in job listings - Standard practice in jurisdictions with posting requirements, providing salary bands in all external job advertisements.
Level 3: Internal salary bands - Sharing compensation frameworks with current employees so they understand their position’s range and adjacent roles.
Level 4: Full transparency - Complete openness where all employee salaries are accessible to the team, pioneered by companies like Buffer and GitLab.
Frequently Asked Questions
Can employers post very wide salary ranges to comply with laws?
While technically legal in most jurisdictions, posting extremely wide ranges (e.g., $50,000-$150,000) defeats the purpose of transparency laws and frustrates candidates. Some jurisdictions like Colorado have issued guidance requiring "good faith" salary ranges based on what employers genuinely expect to pay. New York City's law specifically requires the range to extend from the lowest to highest salary the employer in good faith believes it would pay. Companies posting unrealistic ranges risk reputational damage and lower application rates.
What if I'm applying for a remote job from a state without salary transparency laws?
If the employer is based in a state with salary transparency laws, or if the job can be performed in such a state, they typically must post salary ranges. Many remote-first companies now post ranges for all positions regardless of location. If you don't see a range, you can ask directly - many companies will share even when not legally required. In your outreach, reference the trend toward transparency and frame it as helping both parties determine fit efficiently.
Do salary transparency laws apply to startups and small businesses?
This varies by jurisdiction. New York City's law applies to employers with 4+ employees, while California's posting requirement covers employers with 15+ employees. Colorado's law applies to all employers with at least one employee in Colorado. Some jurisdictions exempt small businesses entirely. Check your specific location's requirements, but many small companies are adopting transparency voluntarily to compete for talent.
How should I use salary range information when negotiating?
Use posted ranges as anchors for negotiation, but recognize they represent the full spectrum for the role across all experience levels. Research where your qualifications place you within that range. If you have relevant experience and skills, aim for the mid-to-upper portion. Be prepared to justify your target with specific examples of your value. Remember that ranges often include room for growth, so starting at the maximum may limit future raises within the same level.