New Massachusetts Law Requires Many Employers to Share Salary Ranges

Noting that she has “long supported wage equity legislation,” Massachusetts Gov. Maura T. Healey recently signed a bill that requires many of the state’s employers to disclose salary ranges.

In a statement announcing the new law, Healey called it “an important next step toward closing wage gaps, especially for people of color and women,” adding that the legislation figures to strengthen Massachusetts employers’ ability to build diverse, talented workforces.

The bill obliges Massachusetts employers in the public and private sectors with 25 or more employees to disclose pay ranges in job postings, and to provide the pay range of a position to an employee who is offered a promotion or transfer. These employers are also required to provide a pay range to employees who already hold that position or are applying for it, if that employee requests such information.

In addition, public and private employers with 100 or more employees must submit wage data reports to the state; these reports will be published through aggregate wage reports by Massachusetts’ Executive Office of Labor and Workforce Development.

The Massachusetts Attorney General’s Office will be given enforcement authority and the ability to impose fines or civil citations for violations of the new law, and the office will conduct a public awareness campaign on the new rules, according to Gov. Healey’s office. The law is also designed to provide employees with protections against retaliation for asking for salary ranges when applying for a job or promotion.

“Massachusetts has always taken seriously our responsibility to ensure pay equity, from the 2016 Equal Pay Act to today’s wage equity legislation,” said Massachusetts Lieutenant Gov. Kim Driscoll. “Not only is this the right thing to do for our workers, but it’s also going to strengthen our economy and ability to compete for the best talent.”

Several organizations throughout the state—including the Wage Equity Now Coalition, the Massachusetts AFL-CIO and the Greater Boston Chamber of Commerce—have expressed their support for the legislation. In a statement, Brooke Thomson, president and CEO of Associated Industries of Massachusetts (AIM), lauded Gov. Healey and leaders of the state’s House and Senate for enacting “meaningful reforms” geared toward helping to close the wage gap.

“AIM believes these important policy changes strike the right balance by promoting open and honest communication about wages while not overburdening our employers,” Thomson said, “all of which makes Massachusetts more competitive.”