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Salary Transparency Laws: Measurable Impact on Hiring

State pay transparency laws moved fast between 2021 and 2025. Here's what the data shows about applications, posted ranges, and wage gaps.

Updated 2026-05-209 min read5 citations

The first US state-level salary transparency law (Colorado's Equal Pay for Equal Work Act) took effect in 2021. By 2025, similar laws were in force in California, New York, Washington, Illinois, and dozens of cities. The empirical question — does transparency change anything — now has enough data to answer with caution.

Key Findings

  1. Colorado (2021), NYC (2022), California (2023), Washington (2023), Illinois (2025), and dozens of other jurisdictions now require posted pay ranges

    Pay transparency laws vary in scope — some require ranges in postings, some require disclosure on request, some include benefits. Colorado SB 19-085, NYC Local Law 32, California SB 1162, Washington's SB 5761, and Illinois HB 3129 are the highest-impact statutes.

    Sources: [1]

  2. Indeed Hiring Lab: share of US postings with disclosed pay ranges climbed from ~17% (2019) to over 50% (2024)

    Indeed Hiring Lab's tracking of pay disclosure in US postings shows a steady rise driven by state laws — the largest single jumps follow when major-state laws took effect.

    Sources: [2]

  3. Postings with disclosed salary receive significantly more applications

    LinkedIn Talent Insights and Glassdoor research consistently find postings with disclosed pay ranges attract 20-30%+ more applications than equivalent postings without ranges. Candidate self-selection is part of the effect — applicants screen on pay before applying.

    Sources: [3]

  4. Posted pay ranges have widened substantially since laws took effect

    Indeed and Payscale data show that the median width of posted pay ranges grew by 30-50% after major state laws — employers post broader ranges to retain flexibility, which has been a frequent criticism from candidates.

    Sources: [4]

  5. Wage-gap effects are measurable but modest in the short term

    Academic research on pay transparency's effect on the gender pay gap (notably Cullen & Pakzad-Hurson, NBER) finds modest narrowing of gaps in short-term post-implementation data, with the size of the effect dependent on enforcement and disclosure scope.

    Sources: [5]

Methodology

Statistics come from publicly-available state laws, posting-data analyses by job-board research arms (Indeed Hiring Lab, LinkedIn Economic Graph, Glassdoor Research), and academic working papers. Effect sizes on wage gaps are sensitive to methodology and time horizon.

What This Means for Job Seekers

For candidates: pay-transparency laws have made comparison much easier and reduced the information asymmetry that historically favoured employers. The widened ranges — and the gap between top-of-range and where most hires actually land — remain a critique. For applications: posting with disclosed pay attracts more applications, but candidates also screen more aggressively. The simplest practical advice: if you're applying in a transparency-law state, search for postings with ranges and use them to gauge market positioning before negotiating.

Citations

  1. [1]State laws (public records) (2024).
    Colorado SB 19-085; NYC Local Law 32; California SB 1162; Washington SB 5761; Illinois HB 3129
    https://www.ncsl.org/labor-and-employment/state-laws-on-pay-transparency
  2. [2]Indeed Hiring Lab (2024).
    Pay Transparency Trends in US Job Postings
    https://www.hiringlab.org/
  3. [3]LinkedIn Talent Solutions & Glassdoor Research (2024).
    Application Volume vs Pay Disclosure Analyses
    https://www.linkedin.com/business/talent/blog
  4. [4]Payscale Compensation Best Practices Report (2024).
    Annual State of Pay Transparency
    https://www.payscale.com/research-and-insights/
  5. [5]NBER / Academic working papers — Zoë Cullen, Bobak Pakzad-Hurson (2021).
    Equilibrium Effects of Pay Transparency
    https://www.nber.org/papers/w28903

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