Massachusetts has enacted legislation (House Bill 4890), which will require employers with 25 or more employees in the Commonwealth to disclose the pay range for a position in any job posting or advertisement. This change will take effect July 31, 2025.
The legislation also requires that employers with 100 or more employees in the Commonwealth to report certain data to the state beginning Feb. 1, 2025.
The Details
Pay Transparency
Under House Bill 4890, pay range is defined as the annual salary range or hourly wage range that the employer reasonably and in good faith expects to pay for such position at that time.
A covered employer must also provide the pay range for the position to an employee who is offered a promotion, or transfer, to a new position with different job responsibilities.
Covered employers must also provide the pay range for a position to an employee holding such position, or to an applicant for such position, upon request. The requirements apply to job postings made directly by an employer or indirectly through a third party.
Protection from Retaliation
Covered employers are prohibited from discharging or in any other manner retaliating or discriminating against any employee or applicant because they have:
- Taken action to enforce their rights under the law;
- Made any complaint to their employer or the attorney general regarding an alleged violation of the law;
- Instituted any legal proceeding under the law; or testified or is about to testify in any such proceeding.
Reporting
The new reporting requirement applies to an employer who meets both of the following criteria:
- Has 100 or more employees in the Commonwealth at any time during the prior calendar year; and
- Is subject to the federal EEO-1 filing requirements.
Under the new law, no later than February 1 each year, covered employers must submit to the state secretary a copy of their properly completed federal EEO-1 data report for the prior year.
Note: The EEO-1 data report is collected by the U.S. Equal Employment Opportunity Commission. Certain employers must complete it annually with workforce demographic and pay data categorized by race, ethnicity, sex and job category.
Next Steps
Covered employers should ensure compliance with the law by the applicable deadline and train supervisors on the changes.