EMPLOYMENT LAW NEWS
Massachusetts Joins Growing National Trend with New Pay Transparency Law
The Pay Transparency bill will take effect on July 31, 2025, giving employers time to review and adjust their compensation practices to ensure compliance.
Massachusetts Joins Growing Trend with New Pay Transparency Law
Massachusetts has become the latest state to adopt pay transparency measures, joining a growing trend across the United States aimed at promoting wage equity. On July 31, 2024, Governor Maura Healey signed into law a Pay Transparency bill that mandates employers with 25 or more employees to include salary ranges in all job postings. This legislation is part of a broader movement to close the gender wage gap and ensure fair compensation for all workers.
The Rise of Pay Transparency Laws
Similar laws have already been enacted in other states, including California, Colorado, Washington, Illinois, and New York, each implementing their own specific pay transparency requirements. These laws have helped to empower employees and job seekers with greater visibility into pay practices, helping to level the playing field in the workplace.
VIEW: Pay Transparency Laws by State: An Interactive Infographic
Details on the New Massachusetts Pay Transparency Law
The Massachusetts law is designed to provide workers and new hires with the information they need to make informed career decisions and to negotiate pay more effectively. Salary ranges must be provided to current employees upon request for their existing roles and to employees who are offered a promotion or transfer to a new position with different job responsibilities.
The Pay Transparency bill will take effect on July 31, 2025, giving employers time to review and adjust their compensation practices to ensure compliance. Businesses should ensure their salary ranges are clear, market-competitive, and accurately reflect the roles they advertise.
What’s Next for Employers?
As Massachusetts aligns with other states in advancing pay transparency, employers are encouraged to work with HR professionals and legal advisors to navigate these changes effectively. Non-compliance could lead to penalties and harm a company’s reputation in the increasingly transparent job market.
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