08/12/2024 | News release | Distributed by Public on 08/12/2024 09:47
Massachusetts has adopted new wage transparency requirements for employers, joining a growing list of other states and cities.
The new law contains two distinct wage transparency measures that apply depending on the employer's size: (1) Pay range disclosure requirements, and (2) wage data reporting to the state.
Gov. Healey signed An Act Relative to Salary Range Transparency (Chapter 141 of the Acts of 2024) on July 31, 2024. The pay range disclosure requirement will take effect on Oct. 29, 2025, one year after the effective date of the act. The first set of wage data reports are due by Feb. 1, 2025.
This section of the bill applies to public or private employers with 25 or more employees in the Commonwealth. The law does not address whether it applies to positions that could be filled by an employee working remotely in Massachusetts.
Under the law, covered employers must
The pay range must be set in "good faith" and can be an hourly wage range or annual salary range. The law covers any advertisement or job posting intended to recruit job applicants, including recruitment directly by a covered employer or indirectly through a third party.
Unlike other jurisdictions, Massachusetts does not require employers to list benefits or other compensation to be offered.
Following states such as California and Illinois that have adopted similar requirements, the Massachusetts law uses existing federal wage data reports required by the Equal Employment Opportunity Commission (EEOC) to form the basis of a state wage data reporting regimen. The reporting requirement applies to public or private employers (1) with 100 or more employees in Massachusetts, and (2) that are subject to the federal wage data filing requirements.
Many private employers may already be familiar with EEO-1, the Employer Information Report promulgated by the EEOC. Under the new law, covered employers must also submit the EEO-1 data report to the Secretary of the Commonwealth (the Secretary). It also requires submission of the EEO-3 (local unions), EEO-4 (state and local government), and EEO-5 (elementary and secondary school staff) reports to the Secretary. The first EEO-1, EEO-3, and EEO-5 reports are due by Feb. 1, 2025, and the first EEO-4 reports are due by Feb. 1, 2026.
The law prescribes the following workflow for wage data reporting, regardless of what category the employer falls into:
Though the individual employer wage data reports will not be considered "public records," the aggregate wage and workforce data reports will be available for public review.
The new law contains a provision prohibiting retaliation or discrimination against any employee or applicant because the individual has asserted or exercised any rights provided by the law.
The Massachusetts attorney general has exclusive authority to enforce both requirements and may obtain injunctive or declaratory relief. The law does not provide a private right of action for individuals..
For the first two years after the statute takes effect, employers will have two days after notice of a violation to cure the violation without penalty.
The bill prescribes the following penalties for violations:
With this enactment, Massachusetts joins a growing number of states with wage transparency laws. Those laws fall into two primary categories: those, like Massachusetts, that require disclosure of salary ranges in a job posting or other publicized job description; and those that require disclosure of salary ranges at some point in the hiring process.
Massachusetts joins the following "job posting" jurisdictions: California; Colorado; Hawaii; Illinois; Maryland; Washington, D.C.; Minnesota; New York; Vermont; and Washington.
"Hiring process" states include Connecticut, Nevada, and Rhode Island.
Before the effective dates, covered employers should consider taking the following actions: