Maine employers will soon face new pay transparency obligations following the passage of LD 54, a law designed to increase wage transparency for job applicants and employees. The legislation takes effect on July 29, 2026, and introduces new requirements related to salary disclosures in job postings, employee pay information requests, and compensation record retention.
Employers with 10 or more employees should begin preparing now to ensure compliance with these new requirements.
- Pay Ranges Must Be Included in Job Postings
Under the new law, covered employers must include the “range of pay” for a position in any job posting.
The law defines “range of pay” as the compensation range an employer anticipates relying upon when setting wages for a position. This may include:
- Any applicable pay scale;
- A previously determined wage range for the position;
- The actual wage range paid to employees currently holding equivalent positions; or
- The budgeted compensation amount for the position.
The legislation provides employers with flexibility in determining the appropriate range to disclose, so long as the disclosed information reflects the compensation the employer reasonably expects to use when filling the role.
Importantly, compensation that is based solely on commissions is not included within the definition of “range of pay.”
- Benefits Information Not Required
Unlike some pay transparency laws enacted in other states, Maine’s new statute does not expressly require employers to disclose benefits information in job postings.
As a result, employers are required to provide compensation range information but are not obligated under this law to include details regarding health insurance, retirement plans, paid time off, bonuses, or other employment benefits.
- Employees May Request Pay Range Information
Further, the law extends beyond recruiting and hiring practices by creating new transparency rights for current employees.
Employers must disclose the range of pay for an employee’s current position upon request. This requirement is intended to provide employees with greater insight into compensation practices and help them better understand how their pay aligns with their employer’s compensation structure.
Organizations should ensure that human resources and management personnel are prepared to respond consistently and accurately to such requests.
- New Recordkeeping Requirements
In addition to disclosure obligations, the law establishes new record retention requirements.
Employers must maintain records showing:
- Each position held by an employee; and
- The employee’s pay history.
These records must be retained for three years following the employee’s termination of employment.
- Steps Employers Should Consider
Before the law takes effect, Maine employers should consider:
- Reviewing all job posting templates to ensure salary ranges are included;
- Evaluating compensation structures and documenting pay ranges for positions;
- Establishing procedures for responding to employee requests for pay range information;
- Training recruiters, hiring managers, and HR personnel on the new requirements; and
- Reviewing record retention policies to ensure position and compensation histories are maintained for the required period.
- Bottom Line
Maine’s new pay transparency law reflects the growing nationwide trend toward greater compensation disclosure in the workplace. Beginning July 29, 2026, employers with 10 or more employees must include pay ranges in job postings, provide pay range information to current employees upon request, and maintain position and pay history records for three years after an employee’s separation. Employers that take proactive steps now will be better positioned to comply with the law and avoid potential compliance challenges once the new requirements take effect.
The lawyers at MHS are available to assist with the upcoming changes under LD 54.