On July 31, 2024, Massachusetts Governor Maura Healey signed into law the "Frances Perkins Workplace Equity Act," introducing new pay transparency requirements for employers in the state1

This legislation, set to take effect on July 31, 2025, aims to promote wage equity and ensure fair compensation for workers across Massachusetts

Key Provisions of the Law

Salary Range Disclosure

The new law requires employers with 25 or more employees in Massachusetts to disclose salary ranges in several situations:

1. In all job postings and advertisements
2. To employees offered a promotion or transfer
3. To current employees upon request
4. To job applicants upon request

The law defines "pay range" as the annual salary range or hourly wage range that the employer reasonably expects to pay for a position.

This requirement applies to both direct employer postings and those made through third-party recruiters or placement agencies

Pay Data Reporting

Employers with 100 or more employees in Massachusetts must submit annual "aggregate wage data reports" to the state‍

These reports should include:

• Workforce demographic information
• Pay data categorized by race, ethnicity, sex, and job category

Employers can satisfy this requirement by submitting their federal EEO-1 Employer Information Report.

The first report is due by February 1, 2025

Enforcement and Penalties

The Massachusetts Attorney General's Office has exclusive jurisdiction to enforce the new law. Penalties for non-compliance include:

• A warning for the first offense
• A fine of up to $500 for the second offense
• A fine of up to $1,000 for the third offense
• Potential civil citations for subsequent violations

Importantly, the law defines an "offense" as one or more job postings made by the same employer within a 48-hour period. This provision helps limit potential fines for multiple related violations.

Anti-Retaliation Provisions

The law prohibits employers from retaliating or discriminating against employees or job applicants who exercise their rights under this law.Protected activities include:

• Making complaints about violations
• Participating in investigations or proceedings related to the law
• Requesting pay range information

Implementation Timeline

While the main provisions of the law take effect on July 31, 2025, employers should note that the pay data reporting requirement begins earlier:

• February 1, 2025: First annual pay data report due
• July 31, 2025: Pay range disclosure requirements take effect

Considerations for Employers

As Massachusetts joins the growing trend of states implementing pay transparency laws, employers should take several steps to prepare:

1. Review and update job posting procedures to include pay ranges.
2. Train managers and HR personnel on the new requirements.
3. Develop processes for disclosing pay ranges to current employees and job applicants upon request.
4. Prepare systems for collecting and reporting pay data to comply with the annual reporting requirement.
5. Review current compensation practices to ensure equity and consistency with disclosed pay ranges.

Broader Impact

The Massachusetts pay transparency law aligns with similar legislation in other states, including California, Colorado, New York, and Washington‍

This trend reflects a growing national movement towards greater wage equity and transparency in the workplace.

By requiring salary range disclosures and pay data reporting, Massachusetts aims to empower workers with information to negotiate fair compensation and help close gender and racial wage gaps.

As the law takes effect, both employers and employees in Massachusetts will need to adapt to this new era of pay transparency.