Hiring remote workers in 2025 opens the door to a bigger talent pool, but it also exposes your business to new compliance risks. One of the biggest shifts this year is the expansion of pay transparency laws across the country. Hiring someone remotely from a state with pay transparency laws could mean you have to follow those rules, even if your business is located elsewhere.
Here is a detailed guide to understanding the pay transparency requirements that could impact your remote hiring practices.
What Is Pay Transparency?
Pay transparency refers to openly sharing information about employee compensation. It often means disclosing salary ranges in job postings, sharing pay structures internally, and making sure employees understand how their pay is determined.
The goal behind these laws is to promote fairness, close gender and racial wage gaps, and give job seekers more information up front. For employers, it means adjusting how you advertise jobs and communicate about pay, especially when hiring across state lines.
States and Cities Expanding Pay Transparency in 2025
Pay transparency requirements started with a few states, but in 2025, many more have adopted new laws or expanded existing ones. If you are hiring remote employees who live or work in these jurisdictions, you need to comply with their local laws.
States with active pay transparency laws include:
- California – Employers with 15+ employees must post salary ranges on job listings.
- New York – Applies to all employers advertising jobs physically performed in New York.
- Colorado – Requires not just pay ranges but also benefits information.
- Washington State – Requires wage scale or salary range disclosure in all job postings.
New or updated in 2025:
- Illinois – Now requires salary ranges for all public job postings.
- New Jersey – Expanded transparency requirements to smaller employers.
- Massachusetts – New regulations implemented in early 2025 for salary range disclosures.
- Minnesota – New laws rolling out by mid-2025.
Some cities and counties (like New York City, Jersey City, and others) also have stricter rules on salary transparency.
Real-Life Examples of Pay Transparency Enforcement
- New York City Fines: In 2024, companies including a tech startup with 30 employees and a mid-sized marketing agency with around 80 employees were fined between $5,000 and $15,000 each for failing to include salary ranges in remote job ads accessible to NYC residents.
- Colorado Settlements: Businesses that posted remote jobs “except in Colorado” faced public backlash and legal action. A national software company with about 150 employees settled for $20,000 after job ads were found to exclude Colorado applicants, violating state transparency laws.
Small businesses are not exempt. State labor departments and city agencies are actively enforcing these rules, even against companies with only a few remote employees.
Common Compliance Mistakes and How to Fix Them
| Mistake | How to Stay Compliant |
|---|---|
| Omitting salary ranges for remote roles | Post a good-faith salary range in every remote job ad, regardless of your business location. |
| Posting “wide” salary ranges (for example, $40,000 to $120,000) | Set realistic, narrow salary ranges that reflect genuine pay expectations. |
| Failing to update hiring templates | Refresh all job descriptions and postings to include updated pay disclosures. |
| Not training hiring managers | Educate everyone involved in hiring about proper pay discussions and compliance. |
| Overlooking local laws for remote employees | Research and comply with pay transparency laws based on where remote employees live and work. |
Quick Self-Check: Are You at Risk?
- Are you hiring fully remote employees across different states?
- Do you post job ads without listing salary ranges?
- Are you unsure which state laws apply to your remote workers?
If you answered yes to any of these, your business could be at risk of violating new pay transparency laws.
How Cirrus Payroll + HR Can Help
Navigating pay transparency laws can feel overwhelming, especially when remote hiring brings multi-state compliance into the picture. That is where Cirrus comes in.
Every Cirrus client receives access to a full library of HR resources at no additional charge. These resources include up-to-date guides and templates that can help you create compliant job descriptions, set clear salary ranges, and manage pay discussions confidently.
Our platform also offers tools to:
- Review and update your remote job postings to meet new pay transparency standards
- Build structured compensation frameworks
- Train your hiring managers on fair and compliant pay practices
- Maintain documentation that protects your business during audits or claims
Want to work with a payroll company that has your back when it comes to HR and pay issues? Book a call with our team today.
Disclaimer: This article is for informational purposes only and is not legal advice. Please consult your legal counsel for advice specific to your situation.