Three states are joining the growing movement toward wage disclosure requirements, with New Jersey, Massachusetts, and Vermont all implementing new pay transparency laws in 2025.

These laws represent a significant shift in employment practices, requiring employers to be more open about compensation in job postings and internal communications.

New Jersey

In November, New Jersey became the latest state to pass a pay transparency law. The new regulations will take effect June 1, 2025, requiring employers to disclose salary ranges or hourly wages in all job postings and promotion opportunities. The legislation also mandates that employers make “reasonable efforts” to announce promotion opportunities to all current employees in affected departments.

Massachusetts

Massachusetts’ pay transparency rules will take effect October 29, 2025. Employers with 25 or more employees will need to disclose pay ranges in several scenarios:

In all job advertisements and postings
When offering promotions or transfers
Upon request from current employees
When job applicants inquire about compensation

Under the Massachusetts law, employees are not entitled to know the pay ranges of positions they do not hold and for which they are not applying.

Vermont

Vermont’s law, effective July 1, 2025, will apply to employers with as few as five employees. It requires wage range disclosure in job advertisements and includes special provisions for commission-based and tipped positions. The law specifically applies to positions located in Vermont as well as remote roles predominantly serving Vermont-based operations.

Next steps

Enforcement mechanisms vary by state. New Jersey will impose civil penalties starting at $300 for first violations, while Massachusetts has established a tiered system of warnings and fines up to $1,000. The Vermont law does not include information on fines or penalties; the state attorney general is expected to post employer guidance by January 1, 2025.

Companies operating in these states are advised to begin reviewing their job posting practices and internal promotion procedures well ahead of the 2025 implementation dates.

The laws join similar measures already in effect in several New England states (e.g., Connecticut, Maine, and Rhode Island), and over a dozen others nationwide, reflecting a broader movement toward pay transparency.