Effective October 29, Massachusetts joined several other states in enacting a new pay transparency law “An Act Relative to Salary Transparency.” How does this affect employers and employees in Massachusetts?

What is Pay Transparency?

Pay transparency is the practice of disclosing pay ranges. Massachusetts employers with 25 or more employees are required to disclose a reasonable and good faith pay range for posted jobs. The law also requires an employer to disclose the pay range of a position to any employee who is being promoted or transferred. Additionally, employers will be required to provide the pay range to employees, upon request, if the employee holds the position, or is applying for the position.

What’s the purpose of the Massachusetts Pay Transparency Act?

The Commonwealth is following more than a dozen other states, with the goal of closing wage gaps.

What if a company posts an overly broad range, like $100 to $100,000?

Overly broad ranges do not comply with the Act. A reasonable and good faith effort in a posted range is required.

What if a staffing agency posts a job for an employer?

The same rules apply to staffing agencies or recruiters. A reasonable and good faith range must be disclosed by a staffing agency or recruiter.

What if a job is posted on some type of social media?

Employers must post the range on any type of social media platform.

Does this apply to roles that are paid by commissions, tips, or on an hourly basis?

Yes. If a role is compensated...

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