On July 31, 2024, Massachusetts enacted the Frances Perkins Workplace Equity Act. This law requires employers with 100 or more employees to provide pay data reports to the Massachusetts state secretary effective Feb. 1, 2025, and employers with 25 or more employees to disclose the pay range in job postings effective July 31, 2025.

Pay Data Reporting Requirements

Under the new law, all employers with 100 or more employees who are subject to federal equal employment opportunity (EEO) reporting requirements (i.e., required to file EEO-1, EEO-3, EEO-4 or EEO-5 data reports) must provide a copy of their federal EEO data reports for the prior year to the Massachusetts state secretary by Feb. 1. For example, employers that are subject to annual EEO-1 reporting requirements must submit a copy of their 2024 federal EEO-1 data report to the Massachusetts state secretary no later than Feb. 1, 2025. The reports must contain workforce demographic and pay data categorized by race, ethnicity, sex and job category.

Pay Transparency Requirements

Effective July 31, 2025, employers with 25 or more employees will be required to:

  • Disclose the pay range for a specific position in the posting of the position;
  • Provide the pay range for a specific position to an employee who is offered a promotion or transfer to a new position with different job responsibilities;
    and
  • Provide the pay range for a particular position to an existing employee holding such position or to an applicant for such position upon request.

Important Dates

Feb. 1, 2025

Employers with 100 or more employees will be required to provide pay data reports to the Massachusetts state secretary.

July 31, 2025

Employers with 25 or more employees will be required to including pay ranges in job postings.

In 2025, Massachusetts employers must disclose pay ranges in job postings and report pay data.

Under the new law:

  • Pay range” means the annual salary or hourly wage range that the employer reasonably and in good faith expects to pay for such position; and
  • Posting” means any advertisement or job posting intended to recruit job applicants, whether such recruitment is done by the employer or through a third party.

No Retaliation – Employers may not terminate or otherwise retaliate or discriminate against any employee or applicant for exercising their rights under the pay transparency provisions of the law (e.g., make a complaint, or institute or testify in any proceeding regarding an alleged violation).

Enforcement and Penalties

The Massachusetts attorney general has the exclusive authority to enforce the law. Employers that fail to submit an annual report or post pay ranges will be subject to a warning for the first offense, $500 for the second offense, $1,000 for the third offense, and penalties ranging from $7,500 to $25,000 for subsequent offenses. However, for violations that occur on or prior to July 31, 2026, employers will have two business days to cure a violation before incurring a fine.

Next Steps for Employers

Employers can take steps now to ensure compliance with the new law by the applicable effective date. Such measures may include establishing methodology for determining compensation ranges, reviewing and updating job postings, and ensuring the appropriate parties (such as HR and recruiting personnel) are trained on the requirements to provide compensation information and to provide a copy of the employer’s EEO data report to the Massachusetts state secretary.

Read Other Blog Posts

Business Insurance in Worcester, MA What You Need To Know Original

Business Insurance in Worcester, MA: What You Need To Know

Running a business in Worcester, MA comes with both opportunities and risks. From property damage to cyber threats, having the right business insurance is essential to protect your investment. Murphy Insurance Agency provides customized coverage for local businesses of all sizes and industries. With over 85 years of experience, we offer trusted advice and tailored solutions to help your business thrive.
Office workers

Massachusetts Enacts Pay Transparency and Pay Data Reporting Law

The new Massachusetts law, the Frances Perkins Workplace Equity Act, requires employers with 100 or more employees to provide pay data reports to the Massachusetts state secretary effective Feb. 1, 2025, and employers with 25 or more employees to disclose the pay range in job postings effective July 31, 2025.
Co-workers with technology

Best Practices for Creating a Cybersecurity Culture

Employees are commonly targeted during cyberattacks, making them an organization’s first line of defense amid such incidents. For this reason, it’s important to make cybersecurity an integral part of company culture as a valued practice upheld by every member of the organization.
Umbrella

The Value of Commercial Umbrella Insurance

In today’s increasingly litigious environment, lawsuits stemming from liability incidents have surged in frequency and severity, leaving many organizations with substantial losses. Fortunately, that’s where commercial umbrella insurance can help.
Commerical truck and car

6 Factors Driving Commercial Auto Losses

A variety of trends have contributed to the rise of commercial auto losses. Here is a look at the most significant factors driving commercial auto losses across the country.
Confetti

Start the Year Right: 10 Business Insurance Tips

The beginning of a new year is the perfect opportunity to reassess your business insurance policies. Here are 10 practical tips to optimize your business insurance and start the year on the right foot.
Happy co-workers

Fostering a Culture of Workplace Safety

Fostering a strong safety culture provides many benefits to an organization. This article explains what it means to have a strong safety culture, outlines associated benefits and provides strategies small businesses can implement to establish this type of culture.
People celebrating

Hosting Holiday Parties Responsibly: Tips for Personal & Business Gatherings

While it’s easy to get caught up in the fun, taking some simple precautions can prevent mishaps and protect you from unexpected situations. Here are some practical tips for hosting a safe and successful holiday party, with a focus on being prepared.
Drowsy

Preventing Drowsy Driving

Every year, the National Sleep Foundation organizes Drowsy Driving Prevention Week to raise awareness about the dangers of driving while fatigued.

Visit Our Business Insurance Page

Business Insurance

Murphy Insurance stands as your steadfast partner in safeguarding your business from unforeseen challenges in today’s dynamic business landscape. In an era where comprehensive business insurance is not just a prudent choice but a vital one for ensuring the long-term stability and security of your enterprise, we are here to offer our expertise. Running a business inherently entails various risks that can potentially impact your financial stability and reputation. Learn more about our comprehensive business insurance solutions, which are meticulously designed to protect you from these potential threats, granting you peace of mind necessary to focus on the growth and prosperity of your business.