Pay equity—compensating employees the same when they perform the same or similar duties while considering legitimate job-related factors—is intended to help close the wage gap that still persists among groups of workers who have been historically underpaid.

While pay equity has been regulated on a federal level for decades through the Equal Pay Act and Title VII of the Civil Rights Act, states are stepping up their attention to the matter with a number of laws in recent years that provide even further protections such as:

• Pay transparency requirements: These laws require employers to provide salary ranges for job openings either in all postings, when an offer is extended, or upon request depending on the state. They’re intended to provide the information applicants and employees need to decide whether to apply for a job, compare a wage for a similar job to what they’re currently making, or negotiate for better pay based on what a position is worth – all in an effort to close the pay gap.
  
  
• Salary history bans: Growing in states and even municipalities, these laws prevent employers from asking about an applicant’s current or past salary. That way, they can’t use this information to set a starting salary based on what an individual previously earned. Such bans can help reduce wage disparities and discrimination for historically underpaid workers.
  
  
• Anti-retaliation provisions: Since pay secrecy can foster discrimination, some states have passed laws protecting the right of employees to share information about their pay and discuss it with others (something the National Labor Relations Act already protects against on a federal level). These laws ensure employees can have access to critical information they can rely on to raise concerns about their own pay.
  
  

Greater Access = Increased Benefits

The gender and racial wage gaps have been recognized by various organizations¹ and movements, such as Black Lives Matter² and #MeToo³, amplifying the inequalities in pay among women and minorities. All of these efforts have contributed to these new state and local pay equity laws. Even though these laws are intended to promote fairness and equity in the workplace, they also hold potential benefits for employers as well.

Providing pay information up front, for example, can speed and streamline the hiring process by providing applicants with the information they need to decide whether to apply for a job. This can greatly reduce the time an organization spends on reviewing and interviewing candidates who may later learn that a position’s salary is below their expectations.

Being open about pay information can further help with recruiting efforts since workers are more likely to consider applying for a position if the pay range is listed in the posting. In fact, SHRM research⁴ found that 70 percent of organizations that list pay ranges on their job postings say doing so has led to more applications. It can also promote an employer’s reputation as one that is honest and values its employees, making it more attractive to applicants.

In addition, providing access to pay data can help with retention. If workers receive pay increases to bring their pay up to a fair wage, that can positively impact their satisfaction. In addition, when an employee knows that they’re being paid fairly, it results in greater productivity, engagement, and loyalty.

Pay Equity Laws: New England Round Up

Several New England states have laws in place or on the horizon to help ensure employees are paid fairly. Here’s a summary of these laws.

• Connecticut: Since January 1, 2019, Connecticut has prohibited employers from asking about an applicant’s pay history, unless it is voluntarily disclosed. As of October 1, 2021, Connecticut has required employers with one or more employees—even if they’re located outside of the state—to provide salary ranges upon the applicant’s request or prior to or at the time the applicant gets an offer, whichever is earlier. In addition, employers must provide an employee with the pay range for the position upon hiring, when there is a change in their position, or when the employee requests it.
  
  
• Maine: Maine has had a salary ban law in effect since September 17, 2019, that prohibits employers from asking job applicants about their salary histories until after they make a job offer that includes compensation terms. It also prohibits employers from asking the candidate’s current or former employer about their pay and clarifies that employers can’t stop employees from discussing their own or other workers’ wages.
  
  
• Massachusetts: On July 1, 2018, a law went into effect barring all employers in Massachusetts from requesting salary history information until after an offer of employment with compensation has been made. In addition, a new law taking effect on July 31, 2025, will require employers with 25 or more full-time workers in the state to include pay ranges in job postings, disclose the range for positions to existing employees who are promoted or transferred to a new job, and provide the information to an employee who holds the position or to an applicant upon request.
  
  
• New Hampshire: There is currently no salary history ban or pay transparency laws in effect.
  
  
• Rhode Island: As of January 1, 2023, Rhode Island has required employers with one or more employees to provide an applicant the salary range for a position the earliest of: the applicant’s request, prior to or when inquiring about their wage expectations, or before or at the time of making an offer. In addition, it prohibits employers from asking about salary history; however, after an offer is made, the employer can rely on wage history to support a wage higher than offered.
  
  
• Vermont:Vermont has prohibited employers from requesting an applicant’s pay history since July 1, 2018. It also has a pay transparency law taking effect July 1, 2025, that will require employers with five or more employees to disclose compensation or a range in any advertisement for a job opening. In this case, a range means the minimum and maximum the employer expects in good faith to pay but can hire someone for more or less based on circumstances such as an applicant’s qualifications or the labor market. Job descriptions must also be posted, if available.
  
  

Compliance Tips

Fines for violations of these laws can be steep; in Rhode Island, they range between $1,000 and $5,000. If you’re covered by one of these laws, it’s critical to take steps to ensure compliance.

Start by conducting a pay equity analysis to identify gaps. Address any gaps with a new pay structure using information gathered from objective tools and resources. Be sure you share your communication philosophy to employees to promote transparency and trust. Keep in mind pay equity isn’t a one-and-done effort. You’ll want to continue to monitor compensation data and update job descriptions and salary ranges going forward to stay compliant—while further closing wage gaps and fostering transparency.

Leading the Way Forward

New England states are leading the way in promoting pay equity and transparency, each adopting laws tailored to their workforce needs. These regulations not only aim to close wage gaps but also offer substantial benefits for employers—from improving recruitment processes to enhancing employee satisfaction and retention. As businesses comply with these evolving laws, they have the opportunity to foster a culture of fairness, transparency, and trust, ultimately creating a more engaged and productive workforce. By continuously assessing pay practices and embracing transparency, organizations can stay compliant while also promoting a more equitable workplace for all.

Rachel Barr, SHRM-SCP, Director of HR Services at isolved
[email protected]