BOSTON (AP) — Massachusetts Mandates Salary Transparency for Businesses with Over 24 Employees
In a significant move towards enhancing pay equity, Massachusetts has enacted a new law requiring businesses with at least 24 employees to disclose salary ranges for new job postings. Governor Maura Healey, a Democrat, signed the bill into law on Wednesday, aligning Massachusetts with 10 other states that have already adopted similar pay transparency measures.
The new legislation not only mandates salary disclosure for job postings but also safeguards employees' rights to inquire about salary ranges when applying for jobs or seeking promotions. Governor Healey emphasized the law's potential to narrow wage gaps, particularly for people of color and women. "This new law is an important next step toward closing wage gaps," Healey stated in a written release. "It will also strengthen the ability of Massachusetts employers to build diverse, talented teams."
Massachusetts now joins 10 other states in requiring employers to reveal salary ranges, a move supported by data from the National Women’s Law Center. The law builds upon a 2016 state statute that outlawed wage discrimination based on gender. House Speaker Ronald Mariano highlighted the law's role in promoting workplace equity and enhancing the state's competitiveness. "Pay transparency will not only make our workplaces more equitable, it will also make Massachusetts more competitive with other states," Mariano asserted.
Senate President Karen Spilka echoed these sentiments, noting the prevalence of wage disparities among women and people of color nationwide. "It’s too common for women and people of color to be paid less than their co-workers nationwide, and Massachusetts is not immune," Spilka stated.
The Associated Industries of Massachusetts (AIM), the state's largest business association, commended the law as a balanced approach that promotes wage transparency without imposing excessive reporting burdens on employers. "AIM believes these important policy changes strike the right balance by promoting open and honest communication about wages while not overburdening our employers with cumbersome and time-consuming reporting requirements," said AIM President Brooke Thomson.
Additionally, the law mandates that businesses with over 100 employees submit their federal wage and workforce data reports to the state's Executive Office of Labor and Workforce Development. This data will be aggregated and published by the agency to identify and address gender and racial wage gaps across industries.
The Attorney General’s Office will oversee enforcement, with the authority to levy fines or civil citations for violations. Employees are also protected from retaliation for seeking salary information. The Attorney General will spearhead a public awareness campaign to inform stakeholders about the new regulations.
In Greater Boston, recent data from the Boston Women’s Workforce Council revealed a 21-cent gender wage gap in 2023. Disparities were more pronounced among women of color, with Black women facing a 54-cent wage gap, Hispanic and Latina women a 52-cent gap, and Asian women a 19-cent gap.
This new law marks a pivotal step in Massachusetts' ongoing efforts to foster equitable pay practices and promote transparency in the workplace.