A new law in New York City that requires employers to list salary ranges in job postings is only the second of its kind in the U.S., but lawyers say its enactment is further proof that pay transparency could soon become the norm—and legal departments across the country would be wise to catch on.

Effective May 15, employers in New York City with more than four employees will need to reveal salary ranges for job postings or advertisements for promotions or transfer opportunities. For the purpose of determining whether they are covered under the law, employers need to count independent contractors as if they were employees.

Colorado passed a similar—but more expansive—law in 2021, requiring employers to include salary ranges in job postings. But in recent years, a handful of other states—including Connecticut, Nevada, Rhode Island, California, Maryland, and Washington—have enacted other laws under which employers need to disclose salary ranges in certain circumstances or at various points in the job application process.