Massachusetts has taken a significant step toward ensuring fair compensation with the passage of the Frances Perkins Workplace Equity Act (Pay Equity Act). Signed into law in July 2024, the new legislation strengthens the existing Massachusetts Equal Pay Act by introducing salary transparency and wage data reporting requirements.
With these new measures, the state aims to close wage gaps and provide employees greater insight into their earning potential. For employers, compliance will require adjustments to hiring practices, salary disclosures, and workforce reporting.
What the New Law Requires
Massachusetts' new Pay Equity Act establishes two significant provisions to increase pay equity across Massachusetts.
Pay Transparency in Job Postings
Beginning October 29, 2025, Massachusetts employers with 25 or more employees must include salary ranges in all job postings. This provision ensures job seekers and current employees have access to salary expectations before applying or negotiating their compensation. Employers must provide:
- The minimum and maximum salary or hourly wage for each job listing.
- Clear pay range disclosures for promotions and internal role changes.
- Compensation details upon request from employees considering transfers.
By requiring transparency, Massachusetts joins several states that are adopting similar pay equity measures. These measures aim to reduce wage disparities and empower workers by providing salary information upfront.
Wage Data Reporting Requirements
Starting February 1, 2025, businesses with 100 or more employees must submit annual wage data reports to the state. The first report will require employers to provide Equal Employment Opportunity (EEO-1) filings, which document workforce demographics by race, gender, and job category.
Future reporting requirements may expand to include additional pay data, allowing the state to monitor compensation trends and disparities more effectively. The goal is to provide greater oversight and accountability in wage structures across industries.
The Impact on Employers
This new law reshapes how Massachusetts businesses manage compensation practices and transparency. Companies must now evaluate their pay structures and job classifications to ensure compliance. Steps employers should consider include:
- Conducting internal pay audits to identify disparities.
- Establishing clear compensation policies to define salary ranges.
- Training HR teams and hiring managers on compliance with pay transparency rules.
- Preparing wage data reports that align with state requirements.
Failure to comply with the new regulations may result in penalties or increased legal scrutiny, making proactive adjustments essential for businesses.
Be Ready for Massachusetts New Pay Equity Law
Massachusetts' new pay equity law marks a shift toward greater transparency and accountability in compensation. As the October 2025 deadline for salary disclosures approaches, employers must act now to align with the law's provisions. Seder Law is here to help businesses understand their obligations under the new law. Contact us to learn more.
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