November 7, 2023 – “An Act Relative to Salary Range Transparency” was passed by the Massachusetts House and Senate on October 4, 2023. The proposed law imposes two requirements for employers: 1) to include salary range on job postings, and 2) to annually provide the Secretary of the Commonwealth with workforce demographics and pay range data. This legislation will go into effect one year after Governor Healy’s approval.
Salary Transparency
On October 4, 2023 the Massachusetts House and Senate passed a bill that requires employers with twenty-five or more employees in the Commonwealth to disclose the pay range for a particular employment position when advertising or posting that position. Additionally, when an employee is offered a promotion or transfer to a new position with new job responsibilities, an employer must provide pay range information. The bill protects employees who request wage information from their employers and also bars employers from discharging, retaliating, or discriminating against employees who exercise their rights under the proposed legislation.
The bill grants the Attorney General exclusive jurisdiction to enforce the proposed legislation and it may obtain injunctive or declaratory relief for this purpose. Interestingly, a private right of action is not permitted. With respect to liability, an employer’s first violation shall be punishable by warning, a second offense by a $500.00 fine, and a third offense by no more than a $1,000.00 fine. However, the proposed legislation stops short of treble damages.
EEO Wage Data Reports
The bill also requires private employers with one hundred or more employees to file annual EEO aggregate wage data reports with the state secretary. These reports include workforce demographics and pay data categorized by race, ethnicity, gender, sex, and job category. To read about the reports in greater detail, visit the EEOC webpage. However, these reports will not be considered public records as defined by the Massachusetts Public Records Law. The Secretary of the Commonwealth will provide wage data reports to the Massachusetts Department of Labor, who will publish the aggregate data on their website.
Governor Maura Healy is expected to sign this bill once it lands on her desk. To read the bill in its entirety, check out the Massachusetts legislature.