When you’re managing payroll, it’s tough to keep track of federal, state, and local law. But if you want to avoid fines and legal issues, you have to maintain compliance. Pay equity laws make this especially complicated because they vary between states, cities, and even counties.
Women in the United States make approximately 84 cents for every $1 men earn (Forbes). Many states are trying to change that by writing more specific bills into law regarding pay transparency, retaliation, and annual pay data reporting. The goal of these laws is to enforce equal pay practices and eliminate discrimination.
What Are Pay Equity Laws?
Pay equity laws prohibit employers from paying employees less based solely on gender or other protected characteristics. These laws require that employees performing substantially similar work—requiring equal skill, effort, and responsibility under similar working conditions—receive equal compensation, regardless of gender.
How Many States Have Equal Pay Laws?
As of 2024, all states have at least some anti-discrimination laws that discourage employers from paying women less than men. However, the language of these laws varies widely, and they can be difficult to enforce.
It’s also important to note that all 50 states and the District of Columbia follow the Equal Pay Act of 1963, which prohibits pay discrimination on the basis of sex. In recent years, many state legislatures have pushed even stronger laws into action. Some of those laws regulate pay transparency and wage history as well.
If you want to know about the pay equity laws in your area, you can use this state-by-state chart as a reference.
These laws change often. Every time you update your company policy on pay equity, make sure you consult with your legal team to stay compliant.
State-by-State Pay Equity Laws
The information provided in our chart is for educational purposes only; it is not legal advice. Always check regulations and consult with an attorney to help ensure compliance.
Penalties for Pay Equity Law Non-Compliance
Employers who violate pay equity laws face significant financial penalties and legal consequences. These can include:
Compensation Penalties
Under the federal Equal Pay Act, employers may be liable for back wages owed to affected employees, plus an additional equal amount as liquidated damages—effectively doubling the compensation owed. Employers must also cover reasonable attorneys’ fees and court costs. If retaliation is proven, employees may receive equitable relief including reinstatement, promotion, and payment of wages lost, along with additional liquidated damages equal to the compensation awarded
Discrimination Penalties
Under Title VII pay discrimination claims, remedies can be even more substantial. In addition to back pay and compensatory damages for emotional distress or harm, punitive damages may be awarded when employers act with malice or reckless indifference. However, caps apply based on employer size: $50,000 for employers with 15-100 employees, $100,000 for 101-200 employees, $200,000 for 201-500 employees, and $300,000 for employers with more than 500 employees.
Pay Equity Law Exceptions
While equal pay laws generally require equal pay for substantially similar work, most states with pay equity laws recognize certain legitimate factors that can justify pay differences. These permissible exceptions commonly include:
- Seniority systems
- Merit-based pay structures
- Systems that measure earnings by quantity or quality of production
- Bona fide factors unrelated to protected characteristics—such as education, training, experience, or geographic location.
Employers must ensure these factors are applied consistently and reasonable—and that they account for the entire wage differential.
Note: Many states have eliminated salary history as a permissible factor, which prohibits employers from using previous compensation to justify current pay disparities.
How to Stay Compliant with Pay Equity Laws
Knowing which states have pay equity laws is just the first step—staying compliant requires ongoing diligence and strategic planning. With varying state equal pay laws, maintaining compliance across multiple jurisdictions can be complex. Following these steps can help ensure you stay compliant:
Step 1: Conduct Regular Pay Equity Audits
Proactive pay equity audits are your first line of defense. Work with legal counsel to conduct comprehensive analyses of compensation across your workforce, comparing employees in substantially similar roles while accounting for legitimate factors such as seniority, merit, and experience. Regular audits help you catch potential issues before they become a problem.
Step 2: Update Compensation Policies
Review your compensation policies to align with pay equity laws in your state. Eliminate practices that rely on salary history, as many states with pay equity laws now prohibit such inquiries. Document clear, objective criteria for determining pay based on legitimate business factors like skill level, experience, and job performance.
Step 3: Support Pay Transparency
States with equal pay laws increasingly require pay transparency. Remove policies that prohibit wage discussions, include salary ranges in job postings where required, and establish clear procedures for employees to raise pay equity concerns without retaliation. Document all pay decisions thoroughly.
Step 4: Stay Current with Changing Laws
Designate someone to monitor changes in legislation across all the states where you operate, and update these policies promptly when new requirements take effect.
Step 5: Implement Ongoing Monitoring and Training
Establish systems to track compensation decisions in real-time, flagging anything that may create pay disparities. Provide regular training to managers and HR staff about your pay equity obligations under both federal and state law. By embedding pay equity into your organizational culture, you’ll be better positioned to maintain compliance as laws continue to evolve.
Stay Compliant with Pay Equity Laws by Using Paycor
Paycor empowers over 40,000 customers to stay compliant with federal, state, and local equal pay regulations. Learn more about how our award-winning HCM platform helps you track important changes, communicate with employees, and update your HR strategy as needed.

Pay Equity Law FAQs
Still have questions? Read on!
Do pay equity laws cover race, ethnicity, and gender?
While all 50 states follow the federal Equal Pay Act prohibiting gender-based wage discrimination, pay equity laws may vary in their protected classes. Some states with equal pay laws extend protections beyond gender to include race, ethnicity, national origin, age, disability, and other characteristics, while others focus exclusively on sex-based pay discrimination.
Are employer’s allowed to ask about salary history under pay equity laws?
Many states with pay equity laws have enacted salary history bans that prohibit employers from asking job applicants about their past compensation.
States with equal pay laws, including California, Colorado, Connecticut, Delaware— and more than 15 others— restrict or prohibit salary history inquiries. However, employers may typically discuss compensation expectations and verify voluntarily disclosed information.
Do pay equity laws promote pay transparency?
Yes, state pay equity laws increasingly incorporate pay transparency measures to reduce wage gaps and promote fairness. These provisions typically prohibit employers from retaliating against employees who discuss wages with colleagues and may require disclosure of salary ranges for open positions, helping ensure more informed compensation decisions.
Which states require pay transparency under their pay equity laws?
Several states with pay equity laws have adopted pay transparency requirements. These include: California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts Minnesota, Nevada, New Jersey, New York, Rhode Island, Vermont, Virginia, and Washington. currently have statewide pay transparency provisions, with requirements varying by jurisdiction.