Washington

With the turn of the new year, employers must focus on refining their recruiting and retention efforts to ensure compliance with a handful of new pay transparency laws, specifically in Illinois, Minnesota, Vermont, Massachusetts, and New Jersey. The Illinois and Minnesota requirements became effective on January 1, 2025. The Vermont, Massachusetts, and New Jersey laws take effect at different points later in 2025.

These laws generate a host of questions, including with regard to application to staffing agencies, the use of pay bands to meet range requirements, items included in “other compensation,” the risks of going above the stated range, the size of permitted ranges, and potential applicability to remote and hybrid positions. In this article, in order of effective date, we review the primary requirements of the new laws and offer takeaways.