Imagine scrolling through a job posting and seeing this line:
“Candidates living in Colorado, California, New York, or Washington are not eligible to apply.”
Well ain’t that a slap in the face? Some employers are making an attempt to avoid pay transparency requirements but its ultimately a self-inflicted wound for employer brand, candidate trust, and long-term recruiting success.
Why Employers Do It
Pay transparency laws are spreading quickly across the U.S. Colorado, California, New York, and Washington already require salary ranges in postings. Illinois follows in January 2025, and Massachusetts joins in October 2025. Each law comes with its own nuances:
- Some trigger at a certain company size.
- Some apply even if the role is remote and the employee could sit in that state.
- Some extend to third-party postings.
For lean HR teams or legal departments, that patchwork can feel overwhelming. So the “easy” solution can seem like excluding candidates in those states to sidestep the disclosure requirement altogether.
There’s also a deeper concern at play. Posting ranges means exposing internal inequities, losing leverage in negotiations, and forcing a harder conversation about compensation philosophy.
Why It’s a Bad Choice
It may seem easier but secrecy and damages your reputation.
1. Candidates want pay information.
- 77% of job seekers say it should be illegal to omit pay ranges.
- 80% want to know how their pay is determined.
Failing to disclose doesn’t just look outdated, it looks evasive.
2. Pay ranges actually help you compete.
- 70% of employers who list pay ranges report more applicants.
- 65% say it makes them more competitive.
3. Your competitors are doing it.
As of late 2024, nearly 58% of U.S. job postings on Indeed include salary ranges. Hiding pay, or blocking whole states makes you stand out for the wrong reasons.
4. It undercuts your DEI commitments.
Research shows transparency narrows inequities by gender, race, and orientation. Exclusion sends the opposite message: that fairness is negotiable.
5. You’re shrinking your own pipeline.
Cutting out entire talent-rich markets like New York, California, Colorado, and Washington isn’t risk mitigation, it’s self-sabotage.
What to Do Instead
If you’re worried about compliance, there are far better options than exclusion:
- Invest in your compensation architecture. Level roles and define clear salary bands.
- Standardize your postings. Include ranges plus a benefits summary that satisfies multi-state requirements.
- Train hiring teams. Help managers explain pay philosophy consistently.
- Audit regularly. Keep ranges market-competitive and defensible.
- When in doubt, disclose. With most employers already sharing ranges, transparency is no longer risky, it’s expected.