Legal Updates
Preparing For the Massachusetts Pay Transparency Act
The date when the Massachusetts Pay Transparency Act goes into full effect is fast approaching. Beginning on October 29, 2025, Massachusetts employers with 25 or more employees will be required to establish and disclose expected salary ranges for posted job openings to applicants, and to provide that same information to current employees upon request.
The new statute also provides that when an employee is offered a promotion or transfer to a new position with different job responsibilities, the employee must be notified of the pay range for the new position. Additionally, upon request, an employer must provide the pay range for a given position to an employee holding such a position, or to an applicant for such a position.
Under the new law, Massachusetts employers with over 100 employees are also required to submit equal employment opportunity (“EEO”) data annually to the Commonwealth. This requirement took effect in February 2025.
Proactive Steps For Employers
The Pay Transparency Act will likely have a significant impact on Massachusetts employers, as employees will have the opportunity to see where their salaries rank within the official pay ranges for their positions. This could lead to increased salary costs for employers and, potentially, legal challenges by employees to pay disparities that are seen as unfair or discriminatory.
Before the law goes into full effect this October, Massachusetts employers should consider taking a number of steps to get ready for the coming changes.
Update Job Descriptions
Determining each position’s appropriate pay range is a fundamental requirement of the new law. A critical first step in doing that is reviewing and updating the formal job description for each position. Job descriptions should accurately define a position’s duties, responsibilities, and essential functions. Job descriptions should also include any required qualifications for the position, such as education, experience, or necessary skills.
Develop A Pay Range For Each Position
After updating their job descriptions, employers should develop a reasonable pay range for each position. A pay range need not be unrealistically precise or narrow, but it also should not be so broad as to be meaningless.
Market research on industry compensation trends may be a valuable tool in this process.
Consider Performing A Pay Equity Audit
Because Massachusetts employers will soon be required to provide current and prospective employees with information about salary ranges, this may raise questions about pay disparities between employees who hold similar positions. Disparities between men and women holding comparable positions may be particularly risky, in light of the changes to the state’s Equal Pay Act that were enacted several years ago.
To get ahead of such issues, an employer should consider performing a pay equity audit to identify any apparent disparities in salaries between similarly situated male and female employees. An employer that conducts a good-faith, reasonable audit and demonstrates that it has taken meaningful steps to eliminate any pay disparities identified during the audit may be able to use the audit as a defense against certain legal claims.
An employer may choose to perform a self-audit or to hire an outside consultant, such as a law firm or consulting firm, to assist with an audit. Regardless of which method is chosen, an employer should consider involving legal counsel from the beginning to protect the attorney-client privilege and ensure that the audit is done properly.
Develop A Pay Transparency Policy
Although a written pay transparency policy is not specifically required under the new Massachusetts law, employers should consider adopting a formal policy. A pay transparency policy may benefit an employer by emphasizing its commitment to pay transparency and equity. A policy can also note that employees are free to discuss their pay with one another, but that they are not required to and should not allow others to pressure them to share their pay information.
Train Human Resources And Hiring Managers
Human resources professionals and hiring managers should be trained on the law’s disclosure and reporting requirements. Employers should also update their job posting procedures to include specifying a pay range for each job posting.
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If you have questions about the new Massachusetts Pay Transparency Act or what your organization should be doing to prepare for it, please feel free to reach out to one of our experienced employment attorneys.
