Navigating the New Pay Transparency Landscape in Massachusetts
As of July 31, 2024, Massachusetts became the latest state to adopt pay transparency laws, joining a growing list that includes Connecticut, Washington D.C., Hawaii, Illinois, Maryland, Minnesota, Nevada, New York, Rhode Island, Vermont, and Washington. The enactment of the law known as “An Act Relative to Salary Range Transparency” marks a significant shift in employer obligations, effective October 29, 2025.
These pay transparency laws are designed to aid job seekers by providing clarity on compensation offered by potential employers. Candidates can utilize this information during negotiations, while current employees gain insight into what the company is willing to pay new hires which could lead to complaints of unfair pay or discrimination.
Key Provisions of the New Law for Massachusetts Employers
- Mandatory Pay Range Disclosure: All employers with 25 or more employees must include the pay range on all job postings. A “posting” is any advertisement or job posting intended to recruit for a specific position, whether posted directly by the employer or indirectly through a third-party recruiter. The “pay range” is defined as the annual salary range or hourly range that the covered employer reasonably and in good faith expects to pay for such positions at that time. If the position’s hourly or salary wage is based on a piece rate or commission, then the piece rate or commission range the employer reasonably expects to pay for the position must be included in the job posting.
- Promotions and Transfers: Employers are required to disclose the pay range for positions to employees who are being promoted or transferred to roles with differing responsibilities.
- Employee Requests: Employees can request the pay range for their current positions, fostering transparency even if there is no vacancy in that role.
- EEO Reporting: Companies with 100 or more employees must submit annual EEO data reports, categorizing workforce demographics and pay data by race, ethnicity, sex, and job category. This data must be submitted to the Secretary of the Commonwealth by February 1 of each year. The aggregated data will be publicly accessible on the Massachusetts Executive Office of Labor and Workforce Development’s website.
- Enforcement Measures: The law allows the Attorney General to enforce compliance, with escalating fines for repeated offenses. Employers will receive a warning for the first violation. For a second offense, fines may reach up to $500; for a third offense, fines can be as much as $1,000. From the fourth offense onward, fines can vary from $7,500 to $25,000 per violation, depending on the circumstances. However, for the first two years following the effective date of the statute (until October 29, 2027), employers will have two business days to cure any defects upon receipt of a notice to cure letter from the Attorney General’s Office.
- Protection Against Retaliation: Importantly, the law includes protections against retaliation for employees pursuing their rights under this statute.
It’s time for employers to adapt and ensure they are ready for compliance by the October 29 deadline! Employers should review their pay structures to ensure that pay ranges are consistent across a role. In addition, employers should ensure all job postings are updated to include pay ranges.
For additional information, please see Pay Transparency in Massachusetts | Mass.gov.
