The Next Legal Trend in Job Posting Requirements: Pay Transparency Makes Way for Hiring Transparency
Time 3 Minute Read
Categories: Employment Law

Over the last few years, employers adjusted to an expanding patchwork of pay transparency laws requiring salary ranges in job postings. Now, lawmakers are moving beyond requiring compensation disclosures and into the next phase of hiring transparency regulation: “ghost jobs” and artificial intelligence disclosures.

Recent legislative activity in many states, including New York, New Jersey, California, and Pennsylvania suggests that employers may soon face additional obligations concerning whether the job advertisements are for positions that are actually open, when hiring decisions are expected to occur, and whether AI tools are being used during the recruitment process.

New York’s Proposed “Ghost Job” Legislation

For example, the New York Senate passed a measure designed to address so-called “ghost job” postings. The bill would require employers to disclose whether they actually intend to hire for a posted position and, if so, provide an expected hiring timeframe. Alternatively, employers would need to affirmatively state that they are collecting resumes for potential future opportunities rather than filling an immediate opening.

The legislation reflects increasing scrutiny of “ghost” job ads—postings that stay up despite hiring freezes, after positions have been filled, or when there is no genuine intent to hire. Critics argue that these postings waste applicants’ time, skew perceptions of the labor market, and may be used to collect applicant data or to create the false impression that a company is actively hiring.

The New York bill, which is awaiting further action by the State Assembly, would impose a fine of $2500 for each print publication or digital platform the advertisement appears on. The fine increases to $5000 if the employer does not rectify its violation within 30 days.

Other States Are Following Suit

New York is not alone. Lawmakers in New Jersey are actively considering similar legislation that would require employers to disclose whether a posting reflects an existing vacancy and establish timelines for filling positions. Some proposals would also require employers to remove postings shortly after a role has been filled and notify interviewed candidates regarding hiring decisions.

Meanwhile, California and Kentucky lawmakers have introduced comparable measures targeting misleading job advertisements and AI-driven hiring practices. Pennsylvania legislators are considering broader legislation that would combine salary transparency, hiring timeline disclosures, and AI notification requirements into a single statutory framework.

This trend suggests that states are increasingly treating job advertisements as regulated employment communications rather than merely recruiting tools.

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