Sign up for the Today newsletter
Get everything you need to know to start your day, delivered right to your inbox every morning.
The new Mass. pay transparency law starts in October. Here’s what to know.
The new law requires many Massachusetts employers to list salary ranges in job postings.
On Oct. 29, Massachusetts will require employers to disclose wage ranges for job postings to applicants and current employees upon request. The new law is titled “An Act Relative to Salary Range Transparency” and aims to reduce pay gaps for women and people of color.
Does the Massachusetts pay transparency law apply to all employers?
The law applies to any Massachusetts company with 25 or more Massachusetts-based employees. To be Massachusetts-based, employees must perform the majority of their work in the state either telecommuting into Mass. or out of Massachusetts. All employees who perform services for wage, remuneration, or other compensation are included in the employer’s headcount, this includes seasonal and temporary employees.
Which job postings must include salary ranges in Massachusetts?
The disclosure must be given for any Massachusetts-based job posting, including remote work that can be performed by a Massachusetts employee or tied to a Massachusetts worksite.
How do employers determine the pay range under the new law?
The job posting must include the full salary, or hourly pay, range which is defined as the “range that the employer reasonably and in good faith expects to pay for such a position at that time.”
Why did Massachusetts pass a pay transparency law?
According to Mass.gov, “salary range transparency in the hiring process is one of the best tools to close gender and racial wage gaps.” The website also reports that people are more interested in applying to a job if the salary is disclosed, further strengthening the Massachusetts economy.
Advertisement:
Massachusetts is one of 15 states to pass a pay transparency law, something that has become more popular in Democrat-led states in the past few years.
What else should workers and employers know about the law?
The law will protect employees from retaliation if they request the salary range.
Employers who violate the act will receive a warning on the first offense, a $500 fine for the second, $1,000 for the third. A fourth violation can be up to $25,000.
The act, originally signed into law July 31, 2024 by Governor Maura Healey, started Feb. 1 by requiring employers of 100 or more employees to submit a workforce demographic data report.
To comment, please create a screen name in your profile
To comment, please verify your email address
Conversation
This discussion has ended. Please join elsewhere on Boston.com