As we reported last year, the Massachusetts Pay Transparency Act's requirement to include pay ranges in job postings takes effect on October 29, 2025. Beginning on that date, employers with 25 or more employees in Massachusetts must disclose pay ranges of employment positions on job postings and provide pay range information to existing employees (i) who are offered promotions, transfers and new positions or (ii) upon employee request. "Pay range" is defined as annual salary or hourly wage range the employer "reasonably" and "in good faith" expects to pay for the position. This does not include bonuses, commissions or benefits.
What Employers Need to Do
- Review salary bands for existing positions and ensure that there are no pay differential issues in your workforce.
- Develop pay ranges for new positions that are consistent with existing salary bands.
- Ensure that all job postings, including those posted by recruiters, include pay range information.
- Make sure HR teams and supervisory employees have a process for handling employee requests for pay information and understand the law's anti-retaliation provisions. Employers may consider updating employee handbooks and anti-retaliation policies to include requests for pay information.
- Be prepared to respond to employee inquiries regarding where they fall within the pay scale. There are many legitimate business reasons for pay differentials, including (i) seniority; (ii) merit; (iii) quantity or quality of production, sales or revenue; (iv) geographic location; (v) education, training or experience, if related to the job at issue; or (vi) travel. Employers should have clear explanations that refer to these factors when employees ask for information about where they fall within the pay scale.
- If you have concerns about pay differentials in your workforce, consider seeking legal counsel to provide attorney-client privileged pay audits to identify and address issues before they become a problem.
For More Information
If you have any questions about this Alert, please contact Bronwyn L. Roberts, Charlotte Drew, any of the attorneys in our Employment, Labor, Benefits and Immigration Practice Group or the attorney in the firm with whom you are regularly in contact.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.
