Massachusetts: Pay Transparency Law Enacted

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APPLIES TO

Employers with 25+ Employees in MA

EFFECTIVE

July 31, 2025

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Quick Look

  • HB 4890 requires any employer with 25 or more employees within Massachusetts to disclose the pay range for any job posting.
  • There is also a requirement to provide the same information to employees who are offered internal promotions or transfers to positions with different job duties.
  • Employers that are subject to federal Equal Employment Opportunity (EEO) disclosures are now required to also provide the EEO data as a wage data report to the Massachusetts Executive Office of Labor and Workforce Development.

Discussion

Effective July 31, 2025, HB 4890 requires any employer with 25 or more employees within Massachusetts to disclose the pay range for any job posting. The bill includes many of the same requirements as other states that have enacted pay transparency laws. A pay range is defined as the annual salary range or hourly wage range that the employer reasonably and in good faith expects to pay for the position at the time of posting. A job posting is any advertisement or job posting intended to recruit job applicants for a particular and specific employment position, whether directly or through a third party. There is also a requirement to provide the same information to employees who are offered internal promotions or transfers to positions with different job duties.

 

Employers that are subject to federal Equal Employment Opportunity (EEO) disclosures are now required to also provide the EEO data as a wage data report to the Massachusetts Executive Office of Labor and Workforce Development. The Secretary of State’s office may establish a web portal, sample email submission, or paper form to facilitate the submission of the wage data reports. The submitted wage data reports will not be considered public records.

 

Employers are prohibited from retaliating against employees for complaints or seeking to enforce their rights under the law. The state Attorney General is tasked with enforcing the law and can obtain injunctive or declaratory relief. Violations will receive a warning for the first offense, a fine of no more than $500 for the second offense, and a fine of not more than $1,000 for the third offense. There is no private right of action for individuals.

 

Action Items

  1. Review the bill here.
  2. Update hiring procedures and job postings for required information.
  3. Prepare to report EEO data, if applicable.
  4. Have appropriate personnel trained on the requirements.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase