Calling all Massachusetts businesses: the state has enacted legislation that mandates pay transparency in the workforce. Governor Maura Healey recently signed into law “An Act relative to salary range transparency” (H.4890), which requires employers to disclose salary ranges and protects an employee’s right to ask for salary ranges.
Under the new law, Massachusetts businesses
with 25 or more employees are required to:
- disclose a pay range when posting a job;
- provide the pay range to an employee who is offered a promotion or transfer; and
- provide the pay range to employees who already hold the job position or are applying for a position or promotion.
Under the new law, “posting” includes recruitment undertaken directly by an employer, as well as
recruitment by a third party. “Pay range” refers to
the annual salary or hourly wage that the employer reasonably expects to pay.
The law does not distinguish between in-person
and remote work, and Massachusetts employers should abide by these job posting requirements for remote positions. Unlike other states, the
Massachusetts bill does not require the disclosure
of bonuses or other benefits.
Employees will also receive protection against retaliation and discrimination if they ask for salary ranges when applying for a job or promotion, or act to enforce their rights under the new law. Further, Massachusetts businesses with more than 100 employees will be required to share their federal wage and workforce data reports with the state Executive Office of Labor and Workforce Development.
Failure to comply with these new requirements could lead to penalties, including injunctions and
other non-monetary relief. The bill will be enforced by the Massachusetts Attorney General. It does
not include a private right of action, meaning aggrieved individuals cannot sue on their own
behalf. In addition, the new law explicitly states that violations are not subject to treble damages
under the Wage Act.
The Massachusetts State Secretary is expected to conduct an awareness campaign for employers
regarding the new pay transparency requirements. These requirements will go into effect on July 31,
2025, one year from the date Governor Healey signed the legislation. Employers with 100 or more
employees are required to submit their first round of federal wage and workforce data reports to the
state of Massachusetts by February 1, 2025.
Employers will want to assess their pay scales and job posting policies to ensure compliance with
the new law. For further guidance, please feel free to contact an attorney at Gesmer Updegrove.
This advisory is for information purposes only, and does not constitute legal advice. If you would like
to discuss the impact of the new pay transparency law, please contact the Gesmer Updegrove LLP Team.
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