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Key Takeaways
- Massachusetts recently enacted "An Act Relative to Salary Range Transparency," which requires covered employers to disclose reasonable, good-faith pay ranges in job postings and to provide pay ranges to applicants and employees at key points in the employment lifecycle.
- In doing so, Massachusetts follows the path of California, Colorado, New York, Illinois, Washington, and others, which have adopted similar pay transparency requirements.
- The Massachusetts law is now in effect and materially reshapes recruiting, internal mobility, and compensation governance for employers operating in the commonwealth.
Coverage and Scope
The Act Relative to Salary Range Transparency (the Act) applies to employers with 25 or more employees who primarily do business in Massachusetts, obligating them to include a salary or hourly wage range in job advertisements and to share those ranges with applicants during the hiring process. The same disclosure duty applies when an existing employee is promoted or transferred, and current employees may obtain the pay range for their position upon request.
The disclosure obligation is platform-agnostic. Employers must include pay ranges wherever jobs are posted, including social media and postings by third parties such as staffing agencies or recruiters.
The law also covers roles compensated by commissions, tips, hourly rates, or piece rates. For these roles, employers must disclose a reasonable, good‑faith pay range, but the Act does not require disclosure of the value or structure of commissions, tips, or benefits, and benefits-cost disclosure is optional.
Additionally, remote work scenarios are within the scope of the law, and employees working remotely in another state may still be covered if the role reports to a Massachusetts-based company.
What Counts as a Compliant Range
Ranges must reflect a reasonable, good-faith estimate of pay for the posted role—overly broad ranges do not comply with the Act. Employers should be prepared to explain the inputs and rationale underpinning posted ranges.
Enforcement, Penalties, and Retaliation Protections
There is no private right of action for the law, but the new law tasks the Massachusetts Office of the Attorney General with enforcement. For the initial violation, the attorney general may issue a warning rather than an immediate fine, and there is a limited cure period that allows employers to correct noncompliant postings before penalties apply. Fines may reach five figures for repeated violations.
The law also prohibits retaliation against employees who exercise their rights to obtain pay range information. Termination, demotion, or disciplinary action in response to such requests is prohibited.
Intersection With Pay Equity and Litigation Risk
Although the Act does not create a private right of action, pay transparency records can become evidence in discrimination and equal pay litigation, reinforcing Massachusetts' existing wage and discrimination statutes. It is possible that plaintiffs could use posted ranges and internal disclosures to test comparators and evaluate disparities, catalyzing broader compliance pressure on compensation practices.
Data Reporting for Larger Employers
The law follows California and Illinois by requiring that large employers submit pay reports to the commonwealth. Employers with 100 or more Massachusetts employees must submit annual, aggregated wage data reports to the secretary of the Commonwealth of Massachusetts, with state guidance noting the reporting requirement took effect in February 2025 and mirrors federal EEO-1 concepts to track wage-equity trends. The commonwealth expects that the initial reports will include data for 2024.
Practical Compliance Priorities
Employers with employees primarily in Massachusetts should move quickly to put the law into practice. This includes the following: (1) counting employees to confirm you are covered; (2) setting and documenting salary‑range rules based on market data, the job, and internal equity; (3) building these steps into recruiter and manager workflows; and (4) making sure staffing firms and job boards post compliant ranges for your Massachusetts roles.
Because pay transparency intensifies scrutiny of compensation systems, employers should consider proactive pay equity audits aligned with Massachusetts Equal Pay Act principles to assess gaps, validate range structures, and fortify defenses. As more "eyes" fall on pay ranges—both internally and externally—regular audits, corrections, and governance will be instrumental in mitigating litigation risk and reinforcing compliance.
Conclusion
Massachusetts' pay transparency regime cements salary range disclosure as a core compliance obligation and a practical gateway to broader pay equity accountability. Employers affected by the law should work with experienced counsel to ensure compliance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
