Massachusetts has recently signed a new bill into law. With many employees and job seekers facing wage disparities, Massachusetts is talking steps to combat these issues. Wage transparency can cause anxiety and confusion, making it hard for employees to feel valued and fairly compensated.
In this article, you will learn about the new Massachusetts pay transparency laws. We’ll cover what these laws mean for employers and employees, the steps businesses need to take to comply, and how these changes can help promote fairness in the workplace. At Paper Trails, we understand the fears and headaches small businesses face regarding payroll, HR, and management. We’re here to inform and guide you through these new regulations, helping you manage your team more effectively and equitably.
Massachusetts has taken a significant step towards promoting wage equity by enacting pay transparency laws. Governor Maura Healey signed ‘An Act Relative to Salary Range Transparency (H.4890)‘ into law on July 31, 2024, with the new requirements set to take effect on July 31, 2025. This law mandates that employers disclose salary information in job postings and report pay data to the state. By doing so, Massachusetts joins other states like California, Colorado, and New York, which have implemented similar legislation to combat wage disparities. For more information on your requirements as a Massachusetts employer, check out this article here.
One of the main aspects of the Massachusetts pay transparency laws is the requirement for employers with 25 or more employees to disclose pay ranges. This disclosure must be made in several situations:
The term “pay range” refers to the salary or hourly wage that the employer reasonably expects to pay for the position at the time of the posting. It’s important to note that this requirement does not extend to other forms of compensation, such as bonuses or commissions.
Another component of the Massachusetts pay transparency laws is the requirement for certain employers to submit wage data reports. Employers with 100 or more employees must annually report aggregated wage data categorized by race, ethnicity, sex, and job category. This data, similar to the information required in the EEOC’s EEO-1 report, helps identify and address wage disparities within the workforce. The state will publish aggregate wage data on the Massachusetts Department of Labor website, providing transparency without disclosing individual employer data.
The new laws not only promote transparency but also protect employees who exercise their rights under these regulations. Employers are prohibited from retaliating against employees or job applicants who request pay range information or report violations of the law. This means employees can freely ask about salary ranges or file complaints without fear of discrimination or termination.
The Massachusetts Attorney General’s Office is responsible for enforcing these laws. For first-time violations, employers will receive a warning. However, subsequent offenses can result in fines ranging from $500 to $25,000, depending on the severity and frequency of the violations.
As an employer, it’s crucial to start preparing now for the implementation of these laws on July 31, 2025. Here are some practical steps to ensure compliance:
The Massachusetts pay transparency laws aim to create a more equitable and competitive job market. By requiring employers to disclose salary ranges and report wage data, these laws help:
The Massachusetts pay transparency laws represent a significant step forward in promoting wage equity and transparency. By understanding and complying with these new regulations, businesses can create a fairer and more inclusive workplace. Remember, the deadline for these changes is July 31, 2025. Start preparing now to ensure your business is ready to meet the new requirements and benefit from a more transparent and equitable pay structure.
Feel free to contact our team here for help navigating labor law changes like these.