Massachusetts Becomes 11th State to Adopt a Pay Transparency Law
On July 31, 2024, Massachusetts became the 11th state to adopt a pay transparency act when Governor Maura Healy signed “An Act Relative to Salary Range Transparency" into law. This law will take effect on July 31, 2025 with a portion of it beginning February 1, 2025.
Under this law, Massachusetts employers with 25 or more employees will be required to include salary range information on all job postings and provide this information to both applicants and current employees regarding their positions. Additionally, employers with more than 100 employees will need to disclose demographic and pay data to the Commonwealth by filing an annual wage report, known as an aggregate wage data report, with the state Executive Office of Labor and Workforce Development. Although these reports will not be public record, the Commonwealth will compile the data into an aggregate report, broken down by industry, which will be posted on the Department of Labor and Workforce Development’s website no later than July 1 each year, starting in 2025.
The purpose of this law is to promote pay transparency and protect workers’ rights by ensuring they have access to salary range information, whether they are applying for a new position, seeking a promotion, or facing a transfer within their current organization.
Key Dates to Remember
Employers must implement two key practices:
1. By February 1, 2025, employers with 100 or more employees must submit their pay data to the Commonwealth.
2. By July 31, 2025, all employers with 25 employees or more must ensure that salary or wage information is included in all job postings. Failure to comply may result in fines or citations.
Prepare Early
Although the effective dates may seem distant, it is crucial to prepare in advance. Employers should establish pay ranges for each position and integrate these ranges into job postings as a standard practice. To proactively address potential issues, employers should also consider conducting a pay equity audit to identify and address any existing pay disparities that could impact the business.
Employers should consult with their employment counsel to develop a plan to avoid fines or citations. The Attorney General will have the authority to enforce this law through fines and/or civil citations. Initial violations will be subject to warnings, with subsequent offenses incurring fines ranging from $500 to $25,000 for a fourth or any subsequent offenses.
If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
