Massachusetts Enacts Pay Transparency and Pay Data Reporting Law

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.