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New Pay Transparency Law Takes Effect in Massachusetts

An abstract depiction of pay equity illustrating diversity in compensation.

News Summary

Massachusetts has launched a new pay transparency law effective February 3, 2025, mandating larger companies to report wage data annually. Employers with 100 or more employees must provide aggregate data to the state and disclose pay ranges in job postings starting October 29, 2025. This law aims to address pay disparities, particularly those related to gender and race, and will be enforced by the Attorney General’s office. Businesses must prepare for compliance to avoid substantial fines for violations.

Exciting New Pay Transparency Law Kicks Off in Massachusetts

Massachusetts is stirring the pot with a brand-new pay transparency law that officially rolled out on February 3, 2025. This savvy legislation is all about helping folks get a clearer picture of compensation practices among employers in the state. So, what should businesses and employees know about this sweeping change?

Who’s Affected?

If you’re running a business with 100 or more employees, get ready to hit that “report” button! The law mandates these larger companies to provide anonymous demographic data concerning wages to the state every year. This is expected to start on February 3, with reports typically due by February 1 to align with state rules. For those smaller businesses with fewer than 100 employees, you’re in the clear and won’t need to report wage data.

What Needs to Be Reported?

Employers are now obligated to submit aggregate wage data reports designed to highlight any pay disparities that may exist. Interestingly, this requirement aligns with a survey that these businesses likely already submitted to the federal Equal Employment Opportunity Commission (EEOC). This way, Massachusetts is putting its best foot forward, making sure fair pay is not just a whisper in the wind.

Job Postings and Pay Ranges

October 29, 2025, businesses with at least 25 employees can’t hide their salaries any longer! They must disclose pay ranges in job postings and provide this information upon request from any employee. This simple yet profound change aims to encourage transparency in job compensation, allowing potential candidates to better understand salary expectations and possibly even boosting hiring efficiency.

Fines and Compliance

$500, and for three or more violations, fines could climb to $1,000, and in some cases, up to a whopping $25,000. So, it’s definitely in the best interest of employers to start prepping for compliance now!

Employee Morale and Pay Disparity Concerns

gender and racial wage gaps, making it essential for businesses to review their compensation practices to address any inequality issues prior to the reporting deadlines.

Who’s Keeping an Eye on Compliance?

Massachusetts Attorney General’s office will take charge of enforcing compliance with this pay transparency law. They’ll also ensure that employees who make inquiries about wage data are protected from any retaliatory actions. This is a step toward offering a safe environment for employees to discuss compensation without fear.

What’s Next?

This new law is a bold step for Massachusetts, championing pay equity through transparency and pushing employers to take a closer look at their wage practices. Whether you’re an employer or an employee, the road to fair pay just got a bit clearer!