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Webinar - Pay Transparency Legislation Best Practices in 2025
Join Payscale’s Chief Product Evangelist, Ruth Thomas and Senior Corporate Attorney-Employment, Lulu Seikaly as they discuss the current landscape of pay transparency legislation and dig into exciting new data around how organizations are approaching it in 2025.
Webinar - Pay Transparency Legislation Best Practices in 2025
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- 2. Today's Presenters: Ruth Thomas ChiefProduct Evangelist Payscale Lulu Seikaly Senior Corporate Attorney- Employment Payscale
- 3. Today's Agenda • Q12025 legislative recap • Trends and insights from the recently released compensation best practices report • How organizations are approaching emerging pay transparency legislation • Q&A
- 4. Q1 2025 LegislativeRecap
- 5. What happened inQ1 2025? US states proposed new Pay Transparency laws 14 Pay Transparency laws came into effect in the US 2 Countries proposed draft legislation for the EU pay transparency directive 4
- 6. The pace ofpay legislation is building and is a force for change Effective January 1, 2021 Colorado Effective June 1, 2022 Prince Edward Island Effective January 1, 2023 California Effective January 1, 2023 Washington Passed March 31, 2023 EU Pay Transparency Directive Effective September 17, 2023 New York State Effective November 1, 2023 British Columbia Effective January 1, 2024 Hawaii Effective June 30, 2024 Washington D.C. Effective October 1, 2024 Maryland Effective January 1, 2025 Illinois Effective January 1, 2025 Minnesota Effective June 1, 2025 New Jersey Effective July 1, 2025 Vermont Effective October 29, 2025 Mass. Effective January 1, 2026 Ontario Keep up to date with legislation here!
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- 8. Pay Transparency USLegislative Landscape
- 9. • Who: employerswith 10 or more employees (anywhere). • What: wage or salary or wage or salary range + general description of benefits and other compensation • E.g. bonuses, stock options, or other incentives • Applies to internal promotions/transfers (except promotions based on performance/tenure or emergency situations) • Proposed Penalties: $300 first offense and up to $600 for each subsequent offense. New Jersey Effective: June 1, 2025
- 10. • Who: employerswith 5 or more employees, with at least 1 working in Vermont, for job postings required to be physically performed in Vermont or a remote job that is predominantly performed in a Vermont office or other Vermont location. • What: minimum and maximum annual salary or hourly wage that the employer in “good faith” expects to pay for the role. • Commissioned Jobs: if role is paid entirely or partly on commission, only needs to state that and no need to disclose compensation range. • Tipped Jobs: must disclose this + range of base wages. • Proposed Penalties: Vermont AG will enforce this law. Vermont Effective: July 1, 2025
- 11. • Who: employerswith 25 or more employees in the Commonwealth • Applies to remote work. • What: must post the annual salary range or hourly range that the employer “reasonably and in good faith” expects to pay for a position at the time of posting. • Applies to internal promotions/transfers. • Employers must provide this information upon request to incumbent employees for their current role. • Proposed Penalties: warning for first offense; $500 for second offense; $1,000 for third offense; etc.. Massachusetts Effective: October 29, 2025
- 12. 2025 update Alaska Connecticut Delaware Florida Indiana Iowa Kentucky Maine Missouri Montana failed Oregon Pennsylvania Virginia vetoed West Virginia U.S. Congress
- 13. 13 Canada Prince Edward Island •All employers (not clarified) • Expected pay or range of expected pay for the role British Columbia • All employers in BC • Expected pay or the expected pay range for a job posting Ontario • Employers with 25 or more employees • Post pay ranges in all job postings for work performed in Ontario, must disclose AI usage, and specify job type (FT/PT) /work location (remote, hybrid) • Must retain job posting records for three years after posting taken down • January 1, 2026 Newfoundland and Labrador TBD
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- 15. EU Pay TransparencyDirective March 2021 Proposal on pay transparency introduced December 15, 2022 EU Commission and EU Parliament reach an agreement on directive with two key parts 1) Pay Transparency Measures 2) Better Access to Justice for Victims of Pay Discrimination March 31, 2023 EU Parliament Passes Directive on Pay Transparency aims to strengthen equal pay for equal work (or work of equal value) through pay transparency, gender pay reporting, and other enforcement measures. June 2026 The EU member states deadline to implement the requirements into local law with reporting commencing in 2027
- 16. Main EU directiverequirements Transparency for job seekers and employees Public disclosure of the gender pay gap Right to Equal pay for comparable jobs Joint pay assessment Expensive penalties
- 17. Pending Drafts ofLegislation Sweden Germany Poland The Netherlands
- 18. Working Groups SetUp Czech Republic Finland
- 19. Poll 1: Whatis your primary driver for adopting pay transparency? A. Compliance with legislation B. To meet employee expectations and retain employees C. To demonstrate we value our employees and reinforce culture D. As a tactic in the competition for talent E. We are not adopting pay transparency at this stage F. None of the above
- 20. How orgs areadapting compensation best practices to meet pay transparency requirements
- 21. Payscale’s 16th annualflagship report for compensation professionals, HR leaders, and business executives. Distills data and insights from the largest known survey focused on compensation management. Completed by 3,595 respondents in Q4 of 2024 with a completion rate of 55%, demonstrating strong respondent engagement. Compensation Best Practice Report 2025
- 22. Compensation is thebiggest challenge facing organizations in 2025—continuing a two-year trend that places compensation ahead of engagement, recruitment and retention.
- 23. Out of compensation-related activities,increasing pay transparency tops the list as most important.
- 24. Most organizations (56%) saythey now share pay ranges in job ads – a decrease of 4% since last year but an increase of 11% compared to 2023.
- 25. The biggest impactpay transparency has had is encouraging better pay communications and more investment in salary data.
- 26. Manager training onpay comms is surging
- 27. The use oftotal rewards statements is also on the rise, increasing YOY in step with manager training on pay communications.
- 28. +38% Investment in compensationstrategy has surged over time and is at an all-time high over at 60 percent in 2025.
- 29. The importance ofjob architecture is growing, especially in large organizations
- 30. While investment inpay equity has declined slightly since its height in 2022, a strong majority remain committed with a 19% increase since 2020.
- 31. Poll 2: What employee reactionshas your organization experienced due to pay transparency legislation? A. We haven't heard anything from employees about pay transparency B. Employees have been asking more questions about their pay C. Employees have left our organization because they saw job postings with higher ranges elsewhere D. Employees have seen a job posting in our organization and realized they were being paid less for a similar job E. Employees have expressed appreciation for our transparent approach to pay F. Other (please let us know in the Q&A!)
- 32. More employees are askingquestions about pay since pay transparency legislation.
- 33. Your pay transparencychecklist Get buy in and commit to build transparent and consistent pay practices with a compensation philosophy that embeds fair pay Understand the relevant factors that impact pay in your organization and make sure this part of your compensation philosophy Ensure you have the job architecture and pay structures that allow for appropriate comparisons between groups of employees Implement pay frameworks and review where employees fall within these Conduct proactive pay equity analysis to understand the impact of wage gaps and biases Training managers and other stakeholders to have effective conversations with employees about their pay
- 34. Q&A Feel free toask any questions in the chat! Interested in a demo of how Payscale's solutions and data can help you in the wake of emerging pay transparency legislation? Let us know you are interested in the open poll and a member of the team will be in touch!