The Search Desk regulation and compliance

State Pay Transparency Laws and the Job Ads a Search Firm Posts

More than a dozen states now require a pay range in the job ad, and some reach employers based well outside their borders. What has to appear, who is liable when the search firm posts, and what to ask the client.

Job advertisement sheets pinned in a grid on a white wall with electric indigo pushpins

Which states require a range in the posting and which require it on request

Pay transparency laws are spreading, and their details matter for any recruiter or search firm that drafts job ads. Some states mandate that salary ranges appear directly in the job posting, while others only require employers to share pay information if a candidate asks. Understanding where each state stands is the first step to compliance.

Among states with clear requirements to display pay ranges in job ads, Colorado was one of the earliest and most scrutinized. Now California, New York, Washington, and several others have joined, each with their own nuances. In these states, if you post a job that could be performed locally, the ad itself must include a good faith pay range reflecting what your client is willing to pay.

Other states such as Connecticut and Maryland require that pay information be provided to candidates, but not necessarily in the initial posting. Typically, these laws require disclosure at some point in the hiring process, such as upon interview or upon request. The distinction is important: employers and recruiters in these states must be ready to provide pay information, but may not need to list it up front.

States with pay range in job posting laws

  • California
  • Colorado
  • New York
  • Washington
  • Nevada
  • New York City (separate from state law)
  • Jersey City, New Jersey

States requiring disclosure on request or at interview

  • Connecticut
  • Maryland
  • Rhode Island
  • Illinois (for some employers in 2025)
  • Other localities and cities with their own requirements

Because requirements can change, always check for updates in a state or city where you recruit or post jobs. Even within a state, major cities can have stricter rules.

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When an out of state posting pulls you under another state's law

Many search firms work across state lines. Pay transparency laws often apply based on where the role will be performed, not where the employer or recruiter is based. This means a posting for a client in Texas, for a job located in New York, must follow New York's posting rules.

Some states go further. If your job posting can be filled by someone working remotely from a covered state, the law may cover your posting even if the employer has no physical presence there. Washington and New York are examples: any job that could reasonably be performed by a resident counts.

It is not always clear how far this reach extends. State guidance sometimes suggests that if an employer refuses to consider residents of the covered state, they can avoid the requirement, but this brings risk. Blanket exclusions can be challenged as discriminatory or impractical in practice.

As a recruiter, you must clarify with your client where the job can be performed, whether remote is an option, and whether the role will be open to applicants in covered states. If so, apply the strictest applicable pay posting rule to avoid compliance gaps.

What has to appear beyond the range: benefits, bonus, and commission

Several states require more than just a base salary or hourly rate. Benefits, bonuses, commissions, and other forms of compensation may need to be disclosed in the job ad, depending on local law.

For example, in New York City, ads must include a good faith pay range for base salary or hourly wage, but employers are not required to detail benefits in the posting. New York State, however, adds that employers must provide a job description if one exists, adding another layer of compliance.

Washington State requires job postings to show a wage scale or salary range, plus a general description of all benefits and any other compensation, including bonuses and commissions. The law specifies that benefits such as health care, retirement plans, paid time off, and any non-monetary perks described in other materials provided to employees must be included.

Colorado's law is among the strictest. Employers must include salary range, a general description of bonuses, commissions, and other compensation, along with benefits. This means you need to gather all this information from your client before posting, even if they have not posted such details internally before.

If you place candidates in roles compensated partly or mostly by commission, take note. In some states, you must state the commission method, range, or formula in the posting. Where the law is silent or ambiguous, err on the side of providing more information.

Keep reading: Where Fractional and Interim Placements Fit in a Search Firm's Revenue

Who carries liability when a search firm posts on a client's behalf

When a search firm posts a job ad for a client, the legal responsibility for compliance usually starts with the employer. However, in practice, both the client and the recruiting firm can face scrutiny or penalties if the posting does not meet legal requirements.

Most pay transparency laws define the "employer" as the entity offering the job, but enforcement bodies may also look at the party who actually published the ad. If a search firm drafts and posts the ad, and it fails to include the required pay range or disclosures, regulators can hold both parties responsible, especially if the recruiter provided the copy or chose the job boards.

Search firms should review contracts with their clients to clarify who is responsible for gathering and supplying accurate pay and benefits information. Even where the client is liable, a recruiter's reputation is at stake. Complaints or violations can lead to removal from job boards, unwanted attention, or souring client relationships.

The safest practice is to insist on reviewing and confirming all pay ranges, benefit details, and compensation structures in writing before posting. Maintain a trail of communication so you can demonstrate due diligence.

Remote roles that can be performed from a covered state

Remote and hybrid work complicates pay transparency compliance. If a role can be performed remotely from any US location, and at least one covered state is included, the pay posting requirements of that state may apply.

For instance, if you post a remote marketing manager job, and the client will consider applicants from Colorado, you must include a salary range and description of benefits, as Colorado law requires. If the remote role is truly nationwide, and several states have pay posting laws, you need to meet the strictest disclosure requirements among all possible applicant locations.

Some employers try to limit compliance risk by excluding residents of particular states. For example, "Remote except Colorado" language has appeared in job ads for years. However, this approach can damage employer brand and may be challenged as discriminatory. Some job boards also discourage or block postings that exclude certain states or cities.

Recruiters should identify where the client will realistically consider candidates before posting. List the states and confirm whether any are covered by pay transparency laws. If so, gather all required compensation and benefit information ahead of time.

Hybrid and flexible roles

Hybrid roles, with both onsite and remote components, need careful review. If any part of the role can be performed in a covered state, treat it as subject to that state's regulations. Document the job location policy clearly in the posting.

See how ShortlistLoop handles this for recruiting

Record keeping obligations that outlast the search itself

Several states require employers and sometimes their agents to keep records related to pay transparency compliance. These requirements may outlast the search project, placement, or even your relationship with the client.

In California, for example, employers must keep records of job titles and wage histories for each employee and each job posting for a set number of years. These records can be requested during an investigation or audit. Washington State and New York have similar requirements, including retention of pay range information and posting copies.

For search firms, this means keeping clear documentation of any pay ranges, job descriptions, benefit statements, and communication with clients about compensation disclosures. Save the final versions of postings and any written approvals from your client. If you partner with other recruiters or share postings, clarify who holds the records.

If you use an applicant tracking system or client management tool, check if it allows you to archive or export copies of postings and related correspondence. Manual record keeping is better than none, but automation reduces risk of accidental deletion or loss.

Regulators can request these records years after the job ad goes live, especially if a candidate complains or if there is a pattern of violations. Keeping a clean file helps you respond quickly and demonstrate good faith compliance.

The intake question that gets the approved range on paper before you advertise

The foundation of compliance is a clear, written pay range and compensation package, approved by the client before any job ad goes live. This is not just a legal safeguard. It also prevents confusion, miscommunication, and disappointment later in the hiring process.

At intake, ask the client directly for the minimum and maximum base salary or hourly rate they are willing to offer for the role. Follow up with questions about bonuses, commissions, equity, and all benefits that may be required to disclose by law. Make sure the numbers are final and have been signed off by whoever has authority to approve offers.

Document this information in writing, whether in a shared file, an offer template, or an intake summary. Confirm with the client that the pay range is compliant in all states where the job may be performed. If the client is not sure, recommend a review by their HR or legal team.

For recruiters who handle more than one client or juggle multiple searches, consider using a tool that captures client-approved pay ranges, tracks candidate status, and stores compensation disclosures alongside each role. This reduces risk and speeds up future audits or compliance checks.

As more states adopt pay transparency rules, staying organized and proactive is essential. Tools that provide a client-facing live shortlist, with stage tracking, feedback capture, and search updates, can make compliance simpler for boutique recruiters and small search firms handling multiple roles at once.

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