A Massachusetts pay transparency law could be on the horizon under pending legislation.
Lawmaker there have introduce bills that would require larger employers to include pay ranges in job postings and submit reporting on wage data. Versions of the bill were introduced in both the Massachusetts House and Senate in October 2023.
If passed, Massachusetts would join the growing number of jurisdictions with pay transparency laws. Observers expect the governor to sign the final version of the bill.
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Massachusetts Pay Transparency
To begin, the pay range in job postings portion of the proposal would apply to employers with 25 or more workers in Massachusetts.
Under the Senate version of the Massachusetts pay transparency bill (House legislation), pay range is defined as:
The annual salary range or hourly wage range that the covered employer reasonably and in good faith expects to pay for a particular and specific employment position at that time.
The requirement to include salary ranges would also extend to third-party recruiters, as well as internal promotions and transfers. Pay ranges would also need to be provided upon request.
The bill includes anti-retaliation provisions.
Meanwhile, another section of the Massachusetts pay transparency legislation includes annual reporting on workforce demographics. This would portion of the bill would apply to employers with 100 or more workers in the state that are also subject to the federal filing requirements of a wage data report. That includes EEO-1, EEO-3, EEO-4 or EEO-5.
Lastly, the state’s attorney general would have exclusive jurisdiction to enforce a Massachusetts pay transparency law.
Guide – Pay Transparency Laws: What Employers Need to Know
Complying with Pay Transparency Laws
The rise of pay transparency laws has been a major employment law trend over the past few years. And they differ by jurisdiction.
Some only require salary ranges to be provided upon request, at the time of hire or when changing jobs, as is the case in Connecticut and Rhode Island. In Nevada, meanwhile, employers must disclose the salary range to applicants who have completed an interview for the position, in addition to other instances.
But the major change of late has been laws that require employers to include salary ranges in job postings. Such jurisdictions include:
Still, each handles their law a bit differently, and employers should always research the laws where they have locations to ensure compliance.
Pay Transparency Laws by State
Employers with locations in the state may want to audit their hiring and reporting practices to determine whether any changes need to be made should the Massachusetts pay transparency law pass.