A new statewide rule makes salaries visible in job postings. Here’s a breakdown for workers and employers.
Effective October 29, Massachusetts joined several other states in enacting a new pay transparency law “An Act Relative to Salary Transparency.” How does this affect employers and employees in Massachusetts?
What is Pay Transparency?
Pay transparency is the practice of disclosing pay ranges. Massachusetts employers with 25 or more employees are required to disclose a reasonable and good faith pay range for posted jobs. The law also requires an employer to disclose the pay range of a position to any employee who is being promoted or transferred. Additionally, employers will be required to provide the pay range to employees, upon request, if the employee holds the position, or is applying for the position.
What’s the purpose of the Massachusetts Pay Transparency Act?
The Commonwealth is following more than a dozen other states, with the goal of closing wage gaps.
What if a company posts an overly broad range, like $100 to $100,000?
Overly broad ranges do not comply with the Act. A reasonable and good faith effort in a posted range is required.
What if a staffing agency posts a job for an employer?
The same rules apply to staffing agencies or recruiters. A reasonable and good faith range must be disclosed by a staffing agency or recruiter.
What if a job is posted on some type of social media?
Employers must post the range on any type of social media platform.
Does this apply to roles that are paid by commissions, tips, or on an hourly basis?
Yes. If a role is compensated by commissions, tips, or paid on an hourly rate, these roles are covered by this law. Roles, which are compensated by piece rates, are also covered by this law.
Does an employer have to disclose the cost of benefits since that is part of total compensation?
Disclosing the cost of benefits is not required, although an employer can include this information if they choose to do so.
Does this cover remote workers?
In most cases, remote workers are covered by this law. Employees working remotely, including those working remotely in another state, are also covered by this law if the role reports to a Massachusetts-based company.
What happens if an employer disciplines an employee when they request this information?
The law prohibits any retaliation. Retaliation could mean terminating, demoting, or disciplining an employee.
What if an employer does not comply?
The Massachusetts Attorney General may investigate and impose penalties for violations including warnings, fines, and other enforcement actions. However, there is a “grace period.” If there are employer violations, employers will have two business days to remedy any violations.
Are there other requirements?
Yes. Employers with 100 or more employees in Massachusetts must submit annual wage data reports to the Commonwealth of Massachusetts. This requirement was effective on February 1, 2025.
What should employers be doing now?
- Reviewing current salary and wage ranges to ensure that they are fair, competitive and reasonable
- Providing training to managers and HR professionals on how to respond to pay-related inquiries
- Ensuring that wage data/EEO reports are being submitted (100 or more employees only)
An employer may also wish to contact an attorney who has expertise in labor and employment matters.
Additional information is available on the Commonwealth’s website, https://www.mass.gov/info-details/pay-transparency-in-massachusetts.
Pattie Hunt Sinacole is a human resources expert and works for First Beacon Group in Hopkinton, an HR consulting firm. She contributes weekly to Boston.com Jobs and the Boston Sunday Globe Money & Careers section.