Massachusetts: Proposed Pay Transparency and Pay Data Reporting Requirements

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All Employers with 25+ MA Employees

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Quick Look

  • Employers with 25 or more employees must comply with pay transparency requirements.
  • Employers with 100 or more employees must provide EEO data for pay data reporting.

Discussion

HB 4109 may soon require pay transparency in job listings and pay data reporting for Massachusetts employers. Under the proposed pay transparency requirements, employers with 25 or more employees must: (1) disclose the salary or wage range for a position in all job postings; (2) provide the salary range to employees who are offered promotions or transfers; and (3) provide the pay range to employees for their current role, if requested. The pay range must be the annual salary range or hourly wage range that the covered employer reasonably and in good faith expects to pay for such position at that time.

The pay data reporting requirements will apply to private employers with 100 or more employees. Covered employers must submit an EEO data report that includes workforce demographic and pay data categorized by race, ethnicity, sex, and job category. The underlying EEO report will not be considered a public record subject to disclosure, but the data will be aggregated and posted on the Massachusetts Department of Labor website. Notably, there is no private right of action in the law, and the Attorney General’s Office will be in charge of enforcement. The Office will have the power to seek declaratory or injunctive relief and impose fines for violations. Fines can range from $500 to $25,000 per violation, depending on the circumstances.

There was a similar bill in the Senate which is now being reconciled with the House bill. Once the two bills are reconciled, it will head to the Governor who is expected to sign. The law would go into effect one year from the date of signature. Employers should use that time to review their pay practices for compliance.

Action Items

  1. Update job descriptions.
  2. Conduct an equal pay audit.
  3. Implement wage ranges for appropriate positions.
  4. Update job posting procedures.
  5. Review pay practices and EEO-1 reporting data.
  6. Monitor the status of the bill for implementation.
  7. 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. © 2023 ManagEase