Massachusetts’ New Law Demands Pay Transparency In Job Listings

The Healey-Driscoll administration marked a step towards wage equity with a ceremonial bill signing on Tuesday, enacting a law requiring employers in Massachusetts to post pay ranges in job listings. 

The new legislation, applicable to businesses with 25 or more employees, seeks to enhance economic competitiveness and ensure wage equity for job seekers.

Aiming for Economic Competitiveness and Equity

Governor Maura Healey emphasized the law’s importance at the ceremony, noting that while Massachusetts is lauded as the best state for women, disparities remain. 

“We know being number one isn’t good enough if you’re a woman in this state and making 79 cents on the dollar, if you’re a Black woman earning 54 cents on the dollar, or if you’re a Latina woman earning 42 cents on the dollar,” Healey stated. 

The law is expected to increase transparency, enabling fair compensation practices and making the state more attractive for talent.

Former Massachusetts Lieutenant Governor Evelyn Murphy, a long-time advocate for equal pay, attended the ceremony to celebrate this legislative victory.

“It’s one thing to say we’re for fairness and equity. But it’s another to document that fairness and equity. We will be doing that now to honor our commitment to women and people of color working here in Massachusetts,” said Murphy.

Tracking and Reporting Pay Data

Beyond requiring pay ranges in job postings, the law mandates that employers with at least 100 employees submit annual wage data reports. 

These reports must include pay information segmented by race, ethnicity, sex, and job category, and are to be published on the Massachusetts Executive Office of Labor and Workforce Development’s website. 

The first set of data is due by February 1, 2025, with the goal of identifying and addressing wage gaps among different demographic groups.

Preparing for Compliance

With the law set to take effect on July 31, 2025, employers should begin preparing now. 

Companies are advised to create wage scales for all positions, ensure consistent publication of salary ranges in job postings, and conduct pay equity audits. 

Employers are also prohibited from retaliating against employees or applicants exercising their rights under this law. 

Noncompliance can result in warnings or fines, enforced by the Attorney General’s office.

By mandating salary transparency and detailed pay data reporting, Massachusetts joins ten other states in a concerted effort to close wage gaps and foster a fairer, more equitable job market.