We have many inquiries from employers on this topic! As a result, we have put together the following Massachusetts Pay Transparency Law FAQs.
What is the Massachusetts Pay Transparency Law?
The Massachusetts Pay Transparency Law was signed into law on July 31, 2024. This law requires employers to disclose pay ranges in job postings for promotions, transfers or new positions. Employers must report demographic and pay data to promote pay equity.
When does the Massachusetts Pay Transparency Law go into effect?
The law goes into effect on February 1, 2025, for reporting requirements.
What are the reporting requirements for the law?
Massachusetts employers with 100 or more employees must file an annual report with the Commonwealth. Furthermore, this report must include demographic and pay data by race, ethnicity, sex and job category. Currently, employers are allowed to submit their current EEO-1 report to meet this requirement.
Read below if your company has 25 (or more) employees!
Which employers must comply with this new law?
Any employer who has 25 or more employees working in the Massachusetts must comply with this law.
My business has less than 25 full time employees but the rest are seasonal. Do we need to comply?
Yes. You must include all employees on the payroll (full-time, part-time, seasonal, temporary, etc.) to determine the number of employees. The calculation is: add the number of employees on each pay period and divide by the number of pay periods. (Note: if no employees were paid in that pay period then the number of employees would be 0). This calculation should be done once a year.
If my company I work for is headquartered outside of Massachusetts, do we need to comply?
If your company has 25 or more employees working in Massachusetts, then yes, you would need to comply.
How does Massachusetts define a pay range?
Per the Commonwealth of Massachusetts: “a pay range is the annual salary range or hourly wage range that the employer reasonably and in good faith expects to pay for such a position at that time.” This does not include additional compensation such as bonuses or benefits.
How can my company get into compliance with this new law?
Contact HR Complete Solutions if your company needs help getting into compliance or if you have any questions. We are here to help you!
Where can employers find more information about the law?
Visit the Commonwealth of Massachusetts website: https://www.mass.gov/info-details/pay-transparency-in-massachusetts.