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Massachusetts enacts pay transparency law

CWS 3.0 - Contingent Workforce Strategies

Massachusetts enacts pay transparency law

Katherine Alvarez
| August 20, 2024
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Massachusetts Gov. Maura Healey recently signed legislation that requires public and private employers with 25 or more employees to disclose pay ranges in job postings both internally and externally, effective July 31, 2025.

HB 4890, dubbed “An Act Relative to Salary Range Transparency,” also requires employers to provide the pay range of a position to an employee who is offered a promotion or transfer and, on request, provide the pay range to employees who already hold that position or are applying for it. It was signed July 31.

The term “posting” encompasses advertisements or job postings intended to recruit applicants, including those by third parties, Forbes reported.

The attorney general’s office will have enforcement authority and the ability to impose fines or civil citations for violations of this law, and employees will receive protections against retaliation for asking for salary ranges when applying for a job or promotion.

In addition, effective Feb. 1, 2025, public and private employers with 100 or more employees will be required to submit annual wage data reports to the Secretary of State of the Commonwealth of Massachusetts, which will then publish them through aggregate wage reports by the Executive Office of Labor and Workforce Development.

“This new law is an important next step toward closing wage gaps, especially for people of color and women,” Healey said in a press release. “It will also strengthen the ability of Massachusetts employers to build diverse, talented teams.”

Other states including Colorado, Maryland, Connecticut, Nevada, Rhode Island, Washington, California and New York have adopted similar measures to combat wage gaps, according to Forbes.