Update Applicable to:	Effective date
All employers with more than 25 employees	EEO and Pay Data – February 1, 2025   Pay Transparency – July 31, 2025

What happened?

On July 31, 2024, Governor Maura T. Healy signed into law HB 4109, which creates the requirement for employer to disclose salary range information on job postings, and HB 4890 (Frances Perkins Workplace Equity Act), which would provide certain pay range information to current employees.

What are the details?

Key Bites for Employers:

Pay Data Reporting: New law requires employers with 100+ employees to file an annual “aggregate wage data report” with the Commonwealth.

• The report includes workforce demographic and pay data, categorized by race, ethnicity, sex, and job category.
  • The first report must be submitted by February 1, 2025.

• Submission of a completed federal EEO-1, EEO-3, EEO-4 or EEO-5 report will satisfy this requirement, reducing paperwork for private employers.

• Individual employer reports are not considered “public records” under the Massachusetts Public Records Law but could be discovered in litigation.

• The Massachusetts Executive Office of Labor and Workforce Development will publish the aggregated reports on its website, but these reports are not subject to public records requests.

Pay Transparency: Private employers with 25+ employees must disclose the pay range for all job postings, including those made through recruiters, third parties, and social media.

• The pay range, defined as the expected annual salary or hourly wage, must be disclosed at the time of posting. The Act does not mandate disclosure of bonuses, commissions, or incentive-based compensation.
  • The pay range must be included in all job postings.
  • The pay range must be disclosed to employees receiving a promotion or transfer.
  • Pay range information must be provided to an employee or applicant upon request.

• For social media postings, employers can comply by linking to the formal job posting with the pay range.

• Employers must provide a pay range for positions offered in promotions or transfers to current employees.

• Upon request, employers must provide the pay range for an existing position to any employee or applicant.

No retaliation: Employers are also prohibited from retaliating against an employee or applicant who exercises their rights under this law.

No private right of action: the law does not create a private right of action and is enforceable only by the Attorney General.

Enforcement: the Attorney General’s Office can seek injunctive or declaratory relief and impose fines for non-compliance. Fines will range from $500 to $25,000.

For a good breakdown.

Business Considerations

• Employers should prepare to file an annual “aggregate wage data report” with the Commonwealth if they have 100+ employees. Employers should note that submission of a completed federal EEO-1, EEO-3, EEO-4, or EEO-5 report will satisfy this requirement, reducing paperwork.
• Employers should not wait to start developing a strategy for compliance with the new law. It is recommended to create a wage scale or salary range for all positions and develop a process for consistently publishing information in external job postings, especially those made through recruiters, third parties, and social media. The pay range must be disclosed at the time of posting and must be included in all job postings and promotions or transfers.
• Employers should consider conducting a pay equity audit. If any discrepancy is found, employers could amend it and avoid any foreseen or unforeseen consequences.
• Employers should be careful in crafting their job postings to ensure that candidates understand the full nature of possible compensation. This includes the expected annual salary or hourly wage but does not mandate disclosure of bonuses, commissions, or incentive-based compensation. For social media postings, employers can comply by linking to the formal job posting with the pay range.
• Employers should consider that non-compliance can result in the Attorney General’s Office seeking injunctive or declaratory relief and imposing fines ranging from $500 to $25,000. It is crucial to understand and adhere to these new requirements.

Source References

• Governor Press Release
• MA HB 4109
• Massachusetts To Require Pay Transparency and Pay Data Reporting (VensureHR)
• Massachusetts Wage Transparency Bill Signed into Law by Gov Healey Joining Other States (Greenberg Traurig, LLP.)
• Massachusetts Enacts a New Pay Transparency Law (Littler Mendelson P.C.)
• Massachusetts Enacts Pay-Transparency Requirements for Employers (Holland & Knight LLP.)
• MA HB 4890

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.