Massachusetts is taking a significant step towards wage equity with the new “An Act Relative to Salary Range Transparency“. This legislation, which focuses on pay transparency, will require employers to make significant changes to their hiring and compensation practices. This portion of the law takes effect on October 29, 2025.
Key Provisions and Covered Employers
The new pay transparency requirements apply to all public and private employers with 25 or more employees in the Commonwealth of Massachusetts. This includes full-time, part-time, seasonal, and temporary employees whose primary place of work is in the state. The law also covers remote workers who are either based in Massachusetts or report to a Massachusetts worksite.
Under the law, covered employers must provide the pay range for a position in the following situations:
- Job Postings. All advertisements and postings for a specific position must include the pay range that the employer “reasonably and in good faith expects to pay for such position”. This requirement applies to postings made directly by the employer and those made by a third-party recruiter or staffing agency on the employer’s behalf.
- Promotions or Transfers. Employers must disclose the pay range to a current employee who is offered a promotion or a transfer to a new position with different responsibilities.
- Upon Request. Both current employees and job applicants have the right to request the pay range for a position. Employers are obligated to provide this information upon request.
The law defines “pay range” as the annual salary or hourly wage range and does not require the disclosure of other compensation, such as bonuses, commissions, or stock options. The Attorney General’s Office has exclusive jurisdiction to enforce these requirements. For the first two years, employers will have a two-day grace period to correct any violations upon receiving notice from the Attorney General’s Office, without facing penalties.
Next Steps for Employers
To ensure compliance, employers should take the following steps to prepare for compliance:
- Review and Update Job Postings: All job advertisements for Massachusetts-based roles, including remote positions tied to a Massachusetts worksite, must be updated to include a good-faith pay range.
- Develop Clear Protocols: Establish internal procedures for providing pay range information to current employees who request it or are offered a promotion or transfer.
- Educate Managers and Hiring Personnel: Provide training to human resource personnel and hiring managers on the new law’s requirements, including how to discuss pay ranges with applicants and employees and how to avoid any form of retaliation against individuals who exercise their rights under the law.
- Conduct Pay Equity Audits: Consider a proactive review of your compensation practices to identify and address potential pay discrepancies before this information becomes public. This can help ensure that existing employee pay is aligned with the ranges being posted for new hires.
