What if discussing pay wasn’t taboo, but a workplace norm? Across the U.S., transparency around salaries is becoming the law of the land, and it’s reshaping how companies handle compensation decisions.

Pay transparency and equity laws are creating waves in workplaces, empowering employees to ask bold questions about their pay and pushing organizations to ensure fairness. However, these laws also pose challenges for employers, who must balance compliance with the flexibility to make salary decisions that align with business needs. As James Atkinson, VP of Thought Leadership at SHRM, puts it, “Transparency builds trust, but it also requires rigor.”

The stakes are high. With 14 state-level pay transparency laws already enacted and more on the way, the landscape is becoming increasingly complex. From disclosing salary ranges on job postings to prohibiting salary history inquiries, these measures are designed to close pay gaps—but they also bring new responsibilities for HR leaders and legal teams.

The statistics don’t lie. Reviews of leadership on Glassdoor have shown a significant rise in employees discussing well-being (+222%), burnout (+126%), and inclusivity (+79%)—proof that workers care deeply about fairness and transparency. Employers who embrace these changes can foster trust, improve retention, and avoid costly legal battles.

Pay audits, for example, are a powerful tool for understanding disparities within your organization. When conducted under attorney-client privilege, they not only protect against potential litigation but also show a public commitment to equity. And tools like annual total rewards documents can help employees understand the full scope of their compensation, boosting transparency and satisfaction.

HR professionals must act now to navigate this evolving landscape. Here’s how:

1. Review and update pay policies to include language on nondiscrimination, transparency, and equity.

2. Train HR and managers on compliance with salary history bans and pay equity laws.

3. Conduct pay equity audits to identify and address disparities.

4. Benchmark salaries and update job descriptions to align with market rates and legal requirements.

The future of compensation is here, and it demands deliberate, data-driven action. As Stephen Malone, Head of Global Employment Law at Peloton Interactive, reminds us, “Market data should drive compensation practices.” Transparency is no longer optional—it’s a cornerstone of trust, equity, and success in the modern workplace.