Ohio risks falling behind on laws to improve pay equity
The state of Ohio has a single law related to pay transparency. Passed in December of 2024 and effective as of April 9, 2025, the Pay Stub Protection Act (H.B. 106) instituted mandatory payroll statements for employees. Doing so ensures that every employee has a record of their hours worked, pay rate, tax deductions, and other information necessary for holding employers accountable and enforcing laws against wage theft.
Pay stubs are crucial for pay transparency,[1] but they are not enough. In the absence of leadership from the state legislature, some Ohio cities have taken another step, requiring employers to disclose information about compensation to current and prospective employees.
- In Cincinnati and Toledo, employers with more than 15 employees must, if requested, disclose pay ranges after a “conditional offer of employment.”
- In Cleveland, employers with more than 15 employees will soon be required to include salary ranges in job postings. (Legislation takes effect at the end of October.)
With the addition of Columbus, the above-named cities also bar most employers from asking job candidates about their salary history. Like pay transparency, this policy can contribute to pay equity.
Working people all over Ohio deserve pay equity. The idea of pay equity is simple: everyone deserves the same rate of pay when performing similar tasks, regardless of demographics. To get it, Ohio needs strong, statewide legislation requiring pay transparency. Ohio is among the neighboring states struggling to keep up. Illinois provides an example of how it can be done.
State-by-state analysis [2]
Illinois: Statewide law applies to any in-state employer with 15 or more employees. Employers must provide a salary range with every job posting. Further, postings must include a “general description of any benefits included in the total compensation, including bonuses, stock options, and other incentives.” Illinois also extends their law to include remote workers who physically perform work outside the state, but report to a supervisor, office, or work site in Illinois. Employers that violate the law may be fined between $500 and $10,000 per violation.
Michigan: Pay transparency legislation has been proposed twice in recent years; neither bill made it out of committee. In 2023, S.B. 142 would have amended existing statewide legislation requiring employers with 5 or more employees to disclose salary ranges in job descriptions for external and internal hiring. Legislators proposed H.B 5619 the following year, which would have required employers with 5 or more employees to include in job postings “responsibilities and duties, required skills and training, working conditions, and salary information including a pay scale.” These job descriptions were to be provided to prospective or internal employees upon request. At publication, Michigan’s legislature is not considering any bills related to pay transparency.
Pennsylvania:No statewide pay transparency laws have been enacted. H.B. 560 would require employers with 15 or more employees to provide “the pay range and the factors the employer considers in setting the pay range” to job applicants both internally and externally. In February 2025, it was referred to committee, where it remains as of this writing.
On the local level, Philadelphia bars employers from inquiring about salary history.
Kentucky: Pay transparency legislation has been proposed in the Kentucky Legislature. H.B. 362 would require employers listing job postings to disclose wages or wage range, as well as a general description of all benefits or other compensation associated with the position described in the job posting. The bill is under consideration.
Conclusion
Pay transparency laws are tools to promote wage equity, reduce discrimination, and modernize hiring practices. While Ohio has made initial progress through the statewide Pay Stub Protection Act and several city-level ordinances, our state can do more for its workers with a comprehensive, statewide pay transparency law.
Neighboring states such as Illinois are setting a strong precedent by mandating salary range disclosures, benefit summaries, and extending coverage to remote workers. If Ohio were to pursue statewide legislation, aligning with Illinois could help create consistency for multistate employers, enhance transparency for job seekers, and promote equity across job types and employment structures.
Pennsylvania and Michigan have begun exploring similar reforms. These developments reflect a broader regional and national shift toward greater openness in compensation structures.
Ohio leads both Wisconsin and Indiana on pay transparency, which is becoming a defining feature of equitable employment policy. Ohio has the potential to lead our region by adopting a holistic and forward-looking approach that serves workers, businesses, and the broader economy.
[1] All of the states examined in this brief require employers to issue pay stubs.
[2]Data for this comparison was gathered through a review of state statutes, labor department guidelines, and relevant municipal ordinances as of mid-2025. Regional comparison states were selected based on shared characteristics with Ohio, including similar workforce compositions, industrial legacies, demographic profiles, and economic structures.