News Summary
A new pay transparency law in Massachusetts will take effect on October 29, 2025. This legislation mandates employers with 25 or more employees to disclose wage ranges in all job postings, aiming to promote pay equity and transparency. It applies to both local and out-of-state employers with workers in Massachusetts. Employers must submit annual workforce demographic data, and a penalty system is established for non-compliance. This initiative aligns with a broader trend across the U.S. to ensure fair compensation regardless of gender or race.
Boston, Massachusetts – A new pay transparency law in Massachusetts will take effect on October 29, 2025, mandating that employers with 25 or more employees disclose wage ranges in all job postings. This legislation, signed by Governor Maura Healey, aims to promote pay equity and transparency in the workplace, particularly helping to address the ongoing gender and racial wage gaps.
Under the law, employers are required to provide the annual salary range or hourly wage range for job listings and must also disclose this information to applicants and current employees upon request. The initiative is designed to foster trust between employees and employers, ensuring that individuals have access to crucial information regarding compensation as they apply for new positions, promotions, or transfers.
The legislation applies not only to local employers but also to out-of-state employers with at least 25 employees working primarily in Massachusetts. These employers must provide pay range data for any positions potentially filled by Massachusetts-based employees, including remote roles. This increases the reach and impact of the law beyond state borders, aiming to unify workplace standards.
Employers with 100 or more employees in Massachusetts will also be required to submit annual workforce demographic data, a process that began on February 1, 2025. This additional requirement aims to enhance overall employment transparency and provide more data to analyze workforce diversity and pay equity.
To enforce compliance with the pay range disclosure requirements, the law establishes a penalty system. The first violation will result in a warning, while subsequent violations may incur fines ranging from $500 for a second offense to $1,000 for a third. For any further offenses, penalties could become increasingly severe. Employers will have until October 29, 2026, to rectify violations after receiving a Notice to Cure letter, which provides organizations a chance to address their non-compliance before facing penalties.
All job applicants, regardless of qualifications or experience level, have the right to request the pay range for any position they are applying for. Similarly, current employees can request the pay range for their current roles. The law explicitly prohibits any form of retaliation against employees who ask for pay information. Those who believe their rights under the law have been violated can file complaints with the Attorney General’s Civil Rights Division, further strengthening the framework for accountability in employment practices.
In defining “pay range,” the law stipulates that it must represent the lowest to highest reasonable compensation expected to be offered at the time of posting. This structured approach aims to eliminate ambiguity regarding employee compensation, moving away from discretionary salary communication practices that have historically contributed to wage inequity.
The Massachusetts pay transparency law is part of a larger trend spreading across various states in the U.S. focused on enhancing pay transparency and equity. As more regions adopt similar measures, the hope is to create a more equitable labor market where individuals are fairly compensated for their work, irrespective of gender or race.
As the implementation date approaches, both employers and employees are encouraged to familiarize themselves with the new regulations to ensure compliance and maximize the benefits of these changes. By increasing transparency in pay, Massachusetts is taking a significant step toward fostering a fairer work environment for all its residents.
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