Massachusetts Mandates Salary Transparency and Wage Reporting by 2025

A new law aimed at increasing pay transparency and equity in the workplace has been signed by Massachusetts Governor Maura Healy, mandating employers to disclose salary ranges in job postings and submit detailed wage data to the state. Scheduled for phased implementation beginning in 2025, "An Act Relative to Salary Range Transparency" aims to tackle wage disparities that often affect employees due to gender, race, and other factors. The measure, noted by the Office of Labor and Workforce Development, seeks to foster a fairer and more equitable job market within the Commonwealth of Massachusetts.

Requirements for Salary Transparency

Disclosure Mandates

Employers in Massachusetts with 25 or more employees will be required to disclose salary ranges in all job postings and for promotions starting July 31, 2025. This mandate applies to internal and external job postings, ensuring that current employees and prospective candidates are provided with transparent compensation information upfront. The disclosed salary ranges are expected to reflect the annual salary or hourly wage that the employer reasonably and in good faith anticipates paying for the role at that specific time.

Moreover, employers must also share salary range information with existing employees and job applicants when requested, providing transparency throughout the recruitment and career advancement processes. These transparency initiatives are designed to give both new hires and existing staff a clear understanding of their pay structures, facilitating more informed career decisions. By promoting openness, the law aims to address salary negotiation imbalances that have historically disadvantaged women and minority groups.

Wage Data Reporting

Effective July 1, 2025, Massachusetts employers with 100 or more employees who are subject to federal EEO reporting requirements will also need to submit detailed wage data to the Commonwealth. This data submission will include demographic and salary information, which will be broken down by race, ethnicity, sex, and job category. Such extensive reporting is anticipated to help identify systemic pay disparities and hold employers accountable for any inequities within their organizations.

The collected data will not be publicly accessible on an individual employer level. However, the Office of Labor and Workforce Development will publish aggregate data by industry on its website, offering insight into broader trends and allowing for comparative analysis across different sectors. This initiative is part of a broader strategy to use data to drive policy and operational changes geared towards greater fairness and equity in workplaces.

Anticipated Benefits

Mitigating Wage Disparities

The law’s proponents highlight that one of its most significant benefits is the potential to identify and correct wage disparities that disproportionately affect women and minority groups. By making salary information more accessible, employees are better equipped to advocate for fair compensation, and employers are more likely to review and improve their pay practices. The law’s framework encourages a culture of openness and accountability that can help to mitigate longstanding inequities.

Additionally, the new regulations protect employees’ rights to discuss compensation and challenge unfair practices without fear of retaliation. Employers are encouraged to establish clear, justifiable salary ranges and conduct regular pay equity audits. These audits are not only crucial for compliance but can also offer a strategic defense in potential Equal Pay Act lawsuits, provided they are carried out within three years prior to any claims. This proactive approach empowers organizations to identify and rectify pay disparities before they escalate to litigation.

Employer Preparation

Given the law’s stringent requirements, employers are advised to start their compliance preparations well ahead of the 2025 implementation dates. This includes establishing transparent salary ranges for all positions and possibly conducting pay equity audits to ensure existing pay practices meet the new standards. Engaging with employment counselors can help navigate the compliance landscape and protect the attorney-client privilege during audits. A thorough and early preparation phase can mitigate risks, ensuring that employers are ready to meet regulatory expectations without facing potential penalties.

Employers should be aware that non-compliance can lead to significant repercussions. Initial violations will result in warnings, but repeated offenses could incur fines. Ensuring adherence to the new regulations will not only prevent financial penalties but also foster a more inclusive and equitable workplace culture, enhancing the organization’s reputation and employee satisfaction.

Conclusion

Massachusetts Governor Maura Healy has signed a new law aimed at enhancing pay transparency and equity in the workplace, requiring employers to include salary ranges in job ads and submit comprehensive wage data to the state. The law, titled "An Act Relative to Salary Range Transparency," is set to be gradually implemented starting in 2025. The legislation’s goal is to address wage disparities often impacting employees due to gender, race, and other factors. According to the Office of Labor and Workforce Development, the measure aims to create a fairer and more equitable job market throughout Massachusetts. By mandating salary range disclosures, it is expected to provide job seekers and current employees with crucial information, thereby helping to close the wage gap and promote fair pay practices. This initiative reflects broader efforts to ensure that all workers receive fair compensation for their work, regardless of background. The phased implementation period will allow employers time to adapt to the new requirements, ultimately fostering a more transparent and equitable working environment within the Commonwealth.

Explore more

How Is Tabnine Transforming DevOps with AI Workflow Agents?

In the fast-paced realm of software development, DevOps teams are constantly racing against time to deliver high-quality products under tightening deadlines, often facing critical challenges. Picture a scenario where a critical bug emerges just hours before a major release, and the team is buried under repetitive debugging tasks, with documentation lagging behind. This is the reality for many in the

5 Key Pillars for Successful Web App Development

In today’s digital ecosystem, where millions of web applications compete for user attention, standing out requires more than just a sleek interface or innovative features. A staggering number of apps fail to retain users due to preventable issues like security breaches, slow load times, or poor accessibility across devices, underscoring the critical need for a strategic framework that ensures not

How Is Qovery’s AI Revolutionizing DevOps Automation?

Introduction to DevOps and the Role of AI In an era where software development cycles are shrinking and deployment demands are skyrocketing, the DevOps industry stands as the backbone of modern digital transformation, bridging the gap between development and operations to ensure seamless delivery. The pressure to release faster without compromising quality has exposed inefficiencies in traditional workflows, pushing organizations

DevSecOps: Balancing Speed and Security in Development

Today, we’re thrilled to sit down with Dominic Jainy, a seasoned IT professional whose deep expertise in artificial intelligence, machine learning, and blockchain also extends into the critical realm of DevSecOps. With a passion for merging cutting-edge technology with secure development practices, Dominic has been at the forefront of helping organizations balance the relentless pace of software delivery with robust

How Will Dreamdata’s $55M Funding Transform B2B Marketing?

Today, we’re thrilled to sit down with Aisha Amaira, a seasoned MarTech expert with a deep passion for blending technology and marketing strategies. With her extensive background in CRM marketing technology and customer data platforms, Aisha has a unique perspective on how businesses can harness innovation to uncover vital customer insights. In this conversation, we dive into the evolving landscape