Remote Pay: Transparency Laws Explained

Pay transparency laws sound like a straightforward fix—post the salary, close the gap. But here’s the catch no one mentions in the headline: when the posted range is too wide, it can actually work against the people it’s supposed to help. New research from Cornell University found that wide salary ranges lead applicants to negotiate less assertively, which means they end up with lower offers—and the very wage gaps the laws aim to close can persist.

Pay Transparency
Remote Work
Employee Rights
Salary Negotiation

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Why Wide Salary Ranges Make Transparency Less Useful

About 15 states now have some form of pay transparency law, requiring companies to include salary ranges in job postings. The intent is sound—give candidates enough information to negotiate fairly, especially women and people of color who have historically been offered less. But the research tells a more complicated story.

In a study published in the Journal of Applied Psychology, women shown a wide salary range (say, $50,000–$80,000) were less likely to negotiate for a higher starting salary than those shown a narrow range. The reason? Wide ranges signal uncertainty, and that uncertainty makes risk-averse candidates—who on average are more often women—hesitate. They accept lower offers, and the gap widens.

What Pay Transparency Laws Actually Require (and Don’t)

Pay transparency laws vary dramatically by state. Some require ranges in every public job posting. Others only require disclosure upon request, or only for external candidates. And a few states extend the requirement to internal promotions and transfers.

Here’s a quick snapshot of what’s common across the laws that have passed so far:

• Disclosure of a wage or salary range for the position
• A general description of bonuses, commissions, and other compensation
• A description of benefits
• Applicability to both external candidates and, in some states, current employees offered a promotion or transfer

But the devil is in the details. For example, Colorado’s law applies to any job that could be performed remotely from Colorado, even if the employer has no physical presence there. New York City’s law covers jobs that could be performed in the city’s jurisdiction if at least one employee already works there. And California’s guidance says the pay scale must be included if the position may ever be filled in California, whether in-person or remote.

How Remote Work Complicates Location-Based Pay

Here’s where it gets really thorny for remote workers. Most pay transparency laws base the requirement on where the work is performed, not where the company is headquartered. So if you’re a remote employee working from Washington state, you’re covered by Washington’s law even if your employer is based in Texas.

But that also means your pay can be tied to your location. An employer might set a salary range of $100,000–$120,000 for a role in New York City, but $80,000–$100,000 for the same role done remotely from Kansas City. When you see that discrepancy, it’s natural to feel underpaid. A top performer in Kansas City earning $100,000 might see a New York City posting for $120,000–$160,000 and assume they’re being undervalued—even if the cost of living adjustment is justified.

This is where compensation philosophy matters. Employers who fail to communicate the rationale behind location-based pay risk losing talent. Harvard Business Review research shows that when new hires get paid more, top performers resign first.

States That Go Further: Internal Promotions and Pay Data Reporting

Some states don’t stop at external job postings. Connecticut, New York, and Massachusetts require employers to disclose the wage range when an existing employee is offered a promotion or transfer. California and Hawaii, on the other hand, focus on external postings only.

Massachusetts also lets current employees request the pay range for their own role—and employers must provide it. That’s a tool many remote workers don’t know they have.

Beyond disclosure, several states require employers to collect and report pay data. California mandates annual reports from private employers with 100 or more employees. Massachusetts requires similar data for employers with 100 or more employees in the state. The EEOC’s EEO-1 data is a starting point, but state laws add their own layers.

What to Do When You See a Range That Seems Off

Seeing a wide range—or even a narrow one—isn’t a guarantee of fair pay. Here’s a practical approach if you’re a remote worker evaluating a job posting:

1. Check the range’s width. If the top is more than 60% above the bottom, be cautious. Research suggests that’s a red flag.
2. Look for context. Does the employer explain what determines placement in the range? Experience, skills, location? If not, ask.
3. Compare similar roles. Use sites like Indeed to see what other companies post for the same title in your area.
4. Negotiate anyway. Even if the range is wide, don’t assume you’ll get the low end. Prepare a market-based justification.
5. Know your state’s laws. If you’re in a state that requires disclosure upon request, use that right.