ARTICLE
22 January 2025

Massachusetts Gets Transparent: FAQs Clarify The Commonwealth's Pay Transparency Law

LM
Littler Mendelson

Contributor

With more than 1,800 labor and employment attorneys in offices around the world, Littler provides workplace solutions that are local, everywhere. Our diverse team and proprietary technology foster a culture that celebrates original thinking, delivering groundbreaking innovation that prepares employers for what’s happening today, and what’s likely to happen tomorrow
Massachusetts' Executive Office of Labor and Workforce Development (LWD) recently published FAQs that provide guidance on the state's new pay transparency law...
United States Employment and HR

Massachusetts' Executive Office of Labor and Workforce Development (LWD) recently published FAQs that provide guidance on the state's new pay transparency law, formally titled the Frances Perkins Workplace Equity Act. The Act requires employers with 100 or more employees to submit their EEO-1 reports to the Commonwealth by February 1 of each year. LWD's recently published FAQs clarify key components of the Act and provide guidance to employers regarding their reporting obligations.

EEO-1 Forms Must Be Submitted Through the State's Online Portal by February 3, 2025

Employers with 100 or more employees must submit their most recently filed federal Employment Information Report (EEO-1 Report) to the Commonwealth by February 1, 2025. Massachusetts has not published its own EEO form. Instead, according to the FAQs, employers should submit the same federal EEO-1 Report that they filed with the EEOC during the most recent calendar year.

Employers will be required to submit EEO-1 Reports through an online portal, which is not yet available. Because February 1 lands on a Saturday, reports will be accepted until February 3, 2025.

Wage Data Not Required

Employers are not required to submit W-2 income earnings data by race/ethnicity, sex, and job category to the state. The federal government has not collected this data through "Component 2" of the EEO-1 form since 2018. Because Massachusetts' pay transparency law is designed to mirror the EEOC's reporting requirements, the Commonwealth will not require wage data at this time. However, the Commonwealth will require this information if the EEOC requires it again in the future.

Save the Date: October 29, 2025 - Salary Ranges Required

The Act also requires Massachusetts employers to disclose salary ranges for most employment postings by October 29, 2025. We expect the Commonwealth to issue guidance regarding this requirement in the coming months.

Be Prepared

The deadline for Massachusetts employers to file their EEO-1 Reports with the state is just a few weeks away. Employers should check the state's website periodically for the go-live date of the EEO-1 submission portal and retrieve their EEO-1 forms now to ensure compliance by February 3, 2025. Littler will provide additional updates on the Act as more information becomes available.

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.

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