Connecticut Employers: Prepare for Enhanced Pay Transparency Requirements
Connecticut recently enacted a pay transparency law requiring employers to include a pay range and general description of benefits in all job postings. This is Connecticut’s first significant step to expand pay-related protections for job applicants since the state’s 2021 pay equity law, which required disclosure of a wage range to applicants and employees only upon request. Now, all Connecticut employers will be required to disclose pay ranges and include a general description of benefits in their job postings. The pay transparency law will take effect on October 1, 2026.
Who must comply with the pay transparency requirements?
Connecticut’s new law applies to all employers, large and small. The pay transparency requirements apply to any jobs located in Connecticut as well as jobs performed outside Connecticut that require the employee to report directly to a supervisor, office or other worksite in Connecticut.
What must covered employers do to comply?
Covered employers must disclose in their postings for new jobs the range of wages they expect to pay, and a general description of benefits or other compensation for the position. This could include health insurance, retirement plans, bonuses, fringe benefits or other financial perks that come with the position.
The wage range must be the employer’s good faith estimate. But it should be based on an applicable pay scale, the previously determined range for the position, the actual range of others holding equivalent positions or the amount budgeted for the position.
These requirements apply any time an employer makes a “job advertisement.” That term is not defined but it likely applies any time an employer announces, posts or otherwise makes known a job opportunity. If the posting has not been made available to the job applicant, the employer must provide a wage range and general description of benefits or other compensation upon the applicant’s request.
What are the penalties for failure to comply?
The law is enforced by a private right of action. Employees and applicants must file a claim within two years of any alleged violation. Employees and applicants can recover compensatory damages, attorney’s fees and other equitable relief. Punitive damages are not available. Employers are prohibited from retaliating or discriminating against applicants for exercising their rights under the law.
Takeaways for employers
Employers doing business in Connecticut should review their current pay rates, hiring practices, promotion practices and postings in anticipation of the October 1, 2026 effective date. States continue to enact pay transparency (job posting) requirements. For example, Illinois, Massachusetts, Minnesota, New Jersey and Vermont all had pay transparency laws take effect in 2025. Virginia’s and Maine’s pay transparency laws take effect this year and Delaware’s takes effect in 2027. Contact your attorney with questions regarding Connecticut’s pay transparency requirements and similar requirements in other jurisdictions.
