What Employers Need to Know About the New Massachusetts Pay Transparency Law
Pay transparency is the p ractice of openly sharing information about employee compensation within an organization or during the hiring process . Effective one-year after Governor Maura Healy signs the legislation , employers with more than 25 employees in the Commonwealth will be required to disclose salary range information on job postings and to provide pay range information to current employees in certain circumstances. Given Governor Healy’s past efforts to achieve pay equality in the Commonwealth, we expect her to sign the bill. Employers with 100 or more Massachusetts employees w ill have the additional requirement of submitting equal employment opportunity (EEO) and pay data annually to the Commonwealth. The first round of EEO reporting for covered employers will be due by February 1, 2025 . Massachusetts follows other states that have recently passed similar laws, including Hawaii, Illinois, Minnesota, Vermont, and Washington, DC, in addition to states such as Cal...