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More states require pay transparency.

    August 14, 2024

    Massachusetts 2025

    Effective July 31, 2025, employers in Massachusetts with 25 or more employees must disclose pay ranges in job postings. This mandate extends to promotions and transfers, where employers must provide pay range information for positions with different responsibilities. In addition, employees and job applicants can request pay range information for specific positions.

    The law defines a "pay range" as the annual salary range or hourly wage range an employer reasonably expects to pay for a position. Notably, the Act does not require disclosure of additional compensation, such as bonuses or benefits. The term "posting" encompasses advertisements or job postings intended to recruit applicants, including those by third parties.

    Reporting Requirements

    A distinguishing feature of this law is its pay data reporting requirement. Starting February 1, 2025, the Act requires employers with at least 100 Massachusetts-based employees to file an annual report with the Commonwealth. This report must include demographic and pay data by race, ethnicity, sex, and job category. The Massachusetts Department of Labor will publish anonymized aggregated data online, offering insights into wage disparities across industries without revealing specific employer details.

    Pay Range Disclosure

    Under the Act, public and private employers with 25 or more employees in Massachusetts must:

    1. Disclose pay ranges in job postings;
    2. Provide pay ranges of positions to employees who are offered promotions or transfers to new positions with different job responsibilities; and
    3. On request, provide the pay range to an employee who already holds an employment position or to an applicant for such position.

    The law is silent on whether it applies to postings for remote jobs, including jobs that could be performed by remote workers in Massachusetts.

     

    Massachusetts Pay Transparency Law 2025: Employer Overview (forbes.com)

    Massachusetts Joins Growing Number Of States With A Pay Transparency Law - Employee Rights/ Labour Relations - Employment and HR - United States (mondaq.com)

     

    Commentary by: Raylea Stelmach

    Edited by: Kim Moss

     

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