New pay transparency rules became law on October 29, 2025. Employers must now adapt their hiring practices and pay communication strategies to stay compliant. For companies with 25+ employees, the law mandates that salary ranges be posted in job listings and disclosed to applicants. This adds a new layer of complexity to HR and payroll processes, and noncompliance could mean lawsuits, fines, or audits. True PEO provides turnkey support to ensure your job postings, internal documentation, and payroll practices stay aligned with evolving laws. Whether you operate in one state or across the U.S., our HR and compliance experts keep you protected. Contact True PEO today to ensure you're remaining compliant to these sweeping HR updates.
The pay transparency law took effect on October 29, 2025, requirng most U.S. businesses with 25 or more employees to include salary ranges in job postings, whether internal or external.
Key provisions include:
States like California, New York, Colorado, and Washington already had similar laws, but this new federal mandate means national compliance is no longer optional. Businesses that post roles online, especially remote jobs, must now manage multi-state compliance with precision.
True PEO helps you stay ahead by updating job postings, compensation templates, and internal communications, so your HR team doesn’t miss a step.
Many businesses underestimate how complex pay transparency can become, until they get flagged during an audit or receive a discrimination complaint. Here's what can go wrong without expert HR and payroll support:
1. Job Posts Don't Match Internal Pay Records
If you publish a salary range that doesn’t align with actual compensation, you open the door to wage discrepancy claims. True PEO ensures alignment between payroll records and postings, reducing your legal risk.
2. Missing or Outdated Compensation Policies
Without formal, up-to-date compensation bands and job descriptions, your team may be operating in legal grey areas. True PEO updates your HR policies, handbooks, and compensation structures to keep them fully compliant.
3. Lack of Multi-State Compliance Controls
Different states have nuanced rules. What’s legal in Florida might be illegal in California. True PEO supports multi-state compliance, ensuring your job listings and pay practices follow each region’s rules.
4. Payroll Discrepancies and Reporting Gaps
Even if HR handles postings correctly, payroll must match. Inaccurate wage reporting or inconsistent overtime pay could draw regulatory scrutiny. True PEO’s payroll administration services help you avoid these gaps.
5. Legal Exposure During Promotions and Internal Transfers
Transparency doesn’t stop hiring. You’ll also need to disclose salary ranges during internal promotions. True PEO equips your managers with scripts, templates, and training to do this properly.
Pay transparency laws are here, and more changes are coming. For small and mid-sized businesses, keeping up with wage disclosure, compensation structures, and documentation can be overwhelming.
True PEO simplifies compliance through:
Don’t wait for a lawsuit or penalty to find out you’re out of compliance. Contact True PEO today and let us handle the complexity while you stay focused on hiring and growth.
Starting October 29, 2025, employers with 25+ employees must include salary ranges in job postings, disclose them upon request, and maintain documentation for pay history and compensation bands.
It applies to most businesses operating in the U.S. with 25 or more employees, regardless of industry, including those with remote or multi-state job postings. Contact True PEO today to ensure you stay compliant with the new transparency laws.
Employers must clearly list the salary range, and in some cases, a general description of benefits and bonuses for each position posted.
