Beginning July 31, 2025, Massachusetts public and private employers with at least 25 workers will be required by state law to disclose pay ranges in job postings.

H.4890 aims to increase equity and transparency in pay by requiring employers to disclose salary ranges and protecting employees’ right to ask for salary ranges. Gov. Maura Healey signed the bill into law on July 31.

“Pay range” is defined in the new law as the “annual salary range or hourly wage range that the covered employer reasonably and in good faith expects to pay for such position at that time.”

“I have long supported wage equity legislation and, as Attorney General, I was proud to work together with the business community to implement the 2016 Equal Pay Act,” said Healey, in a press release. “This new law is an important next step toward closing wage gaps, especially for people of color and women. It will also strengthen the ability of Massachusetts employers to build diverse, talented teams. I want to thank the legislature, advocates, labor unions, and the business community for their hard work to see this through.”

The new law will also require employers to provide the pay range of a position to employees who are offered a promotion or transfer and, on request, the pay range to employees who already hold the position, or are applying for it.

Healey’s Office says the Attorney General’s Office will conduct a public awareness campaign on the new rules.

The AG’s Office will also be given enforcement authority and the ability to impose fines or civil citations for violations of the law once it’s in effect, and employees will receive protections against retaliation for asking for salary ranges when applying for a job or promotion.

The legislation requires public and private employers with 100 or more employees to submit wage data reports to the state, which will then be published through aggregate wage reports by the Executive Office of Labor and Workforce Development. The office is required to publish the first report no later than June 1, 2025.

“Massachusetts has always taken seriously our responsibility to ensure pay equity, from the 2016 Equal Pay Act to today’s wage equity legislation,” said Lt. Gov. Kim Driscoll, in the release. “Not only is this the right thing to do for our workers, but it’s also going to strengthen our economy and ability to compete for the best talent.”

Labor and Workforce Development Secretary Lauren Jones added, “Massachusetts is among early adopters to lead on this effort, demonstrating how working together with government, businesses, labor, and advocates will move us forward in tackling gender and racial wage disparities and inequities within the workplace. As this policy is implemented, the Healey-Driscoll administration looks forward to working with employers to leverage this as a new tool to attract and retain skilled, diverse talent committed to growing their professions right here in Massachusetts.”

Sen. Patricia Jehlen (D-Middlesex) said the bill was a priority for the legislature and Gov. Healey.

“The 2016 Equal Pay Act was a huge step forward in closing pay gaps and it worked,” she said, in the release. “Recent studies show significant increases in pay for women and people of color as a result of the act. This bill takes the next steps: job seekers, especially women and people of color, will enter wage negotiations with more information to secure better offers. With the data collected, we’ll learn about inequities that persist and be able to identify ways to solve them.”

Senate President Karen E. Spilka (D-Ashland) noted it’s far too common for women and people of color to be paid less than their co-workers nationwide.

“Our state stands united behind every worker — and with every business — in our steadfast commitment to the fundamental principle that every person has the right to be treated and compensated fairly in the workplace,” she said in the release. “I’m thankful to Governor Healey for her signature, Senator Jehlen for her work on the conference committee, each of the conferees, Speaker Mariano, and our partners in the House for their work on this critical legislation.”

“With the signing of this legislation, Massachusetts is one step closer to ensuring equal pay for equal work,” said House Speaker Ronald J. Mariano (D-Quincy). “Pay transparency will not only make our workplaces more equitable, it will also make Massachusetts more competitive with other states. I’d like to thank Governor Healey, Senate President Spilka and Leader Gregoire, as well as all members of the House and the Senate, for their important work on this legislation.”

Sen. Paul R. Feeney (D-Foxborough), Senate Conferee and sponsor of wage transparency legislation that was folded into the underlying bill, said he’s proud the Commonwealth is “taking concrete and nation-leading steps to close long-standing gender and racial wage gaps that persist across our economy.”

“These gaps not only erode the integrity of work in the Commonwealth but also continue to exacerbate an uneven economy for working people, especially women and people of color who have historically faced persistent and glaring inequities in the workplace,” he said, in the release. “By bringing partners in labor, business, and community together to establish common-sense wage and workplace transparency, we will ensure Massachusetts can continue attracting and retaining diverse and skilled workers that enable our Commonwealth to compete and thrive. With the signing of this bill, workers are empowered and businesses are supported.”

California mandates a similar requirement for employers with at least 15 employees. Since Jan. 1, 2023, California businesses have had to disclose pay ranges in their job ads, according to SB 1162, which Gov. Gavin Newsom signed into law on Sept. 27, 2022. It also requires all employers in the state to disclose pay ranges to employees who request them.

Images

Featured image: Gov. Maura Healey signs H.4890 into law on July 31, 2024. (Credit: Office of the Governor for the Commonwealth of Massachusetts)