Massachusetts has joined various other states in enacting a pay transparency law. Effective July 31, 2025, employers with 25 or more employees in Massachusetts must include a pay range in any advertisement or job posting used in the recruitment of applicants for a specific role.

This law applies to employers' direct recruiting efforts, as well as those conducted indirectly through recruiters and other third parties.

Covered employers must include a pay range in its postings, which is broadly defined as “the annual salary or hourly wage range that an employer reasonably and in good faith expects to pay for a position.” The pay range must be shared with:

• An employee upon the employee's request for that person’s current role;
• An applicant upon request for the role to which they are applying; and
• An employee offered a promotion or transfer to a new position with different job responsibilities, for the offered new role.

Unlike some other pay transparency laws, the Massachusetts pay transparency law does not require job postings to include anything but the pay range for the opening. This is very different than a law like the Colorado pay transparency law, which requires pay ranges, information on other forms of pay, and a description of benefits offered for a position.

Additionally, covered employers are prohibited from discharging or otherwise discriminating or retaliating against an employee or applicant for making a complaint regarding an alleged violation of the pay transparency law.

Enforcement and Remedies

Any violations of the Massachusetts pay transparency law must be enforced by the Massachusetts Attorney General. Violations are punishable by a warning for the first offense, a fine up to $500 for the second offense, and a fine up to $1,000 for the third offense. Violations for a fourth or subsequent offense may result in a fine of up to $25,000. One or more job postings made by the same employer within a 48-hour period will be considered a single offense.

For the first two years after the pay transparency requirements take effect, employers will have two business days to comply after receiving notice of a violation before the state can impose a fine.

Next Steps for Massachusetts Employers

• If you have not recently assessed your pay program, now is the time. Each role should have a current, accurate job description and a salary range. A deeper dive to confirm the salary ranges in the context of your organization and to ensure there are no inequities in employee pay is also recommended.
• Update all job postings to reflect current salary range information. This includes postings that have been distributed to third party platforms.
• Hiring managers are the face of your organization from the candidate perspective. They should be provided with access to their employees' salary ranges and ranges for vacant positions. A guide that explains how to discuss salaries with candidates and the guide rails for negotiating new hire salaries can be an invaluable reference.
• Policies and procedures should be in place for employees to easily request pay ranges for their own position and any position for which they are applying.

Pay Reporting Requirements

The Massachusetts pay transparency law also states that employers with 100 or more employees in Massachusetts that file certain Federal reports shall submit their applicable EEO-1, -3, -4, or-5 Report to the state by February 1st. For EEO-1 filers, the previous year’s report must be submitted on an annual basis. For other filers, reporting must conform to the cycle associated with the relevant reporting.

Covered organizations are to submit the “wage data report” associated with their federal EEO reporting. As there currently is no wage data reporting associated with EEO-1 reports, there will be no pay reporting to submit for EEO-1 filers during 2025.