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As readers may recall, in 2018 Massachusetts updated its Equal Pay Act by passing An Act to Establish Pay Equity. That updated law provided clarity on what constitutes unlawful wage discrimination; it also ensured that Massachusetts employers not pay employees of different genders less money for “comparable work.”
Building on that law, the Act Relative to Salary Range Transparency (aka the “Massachusetts Wage Transparency Act”) goes into effect on October 29, 2025. At its core, the primary purpose of the new law is to give both prospective employees and current employees information on the wage range paid for positions. Below is a concise summary of the key aspects of the Wage Transparency Act.
COVERED EMPLOYERS
The new law only applies to “covered employers.” A covered employer is a private or public employer with twenty-five or more employees whose “primary place of work” is in Massachusetts. The Massachusetts Attorney General’s Office has recently opined that “primary place of work” means where the employee performs most of their work. For purposes of determining a primary place of work in Massachusetts, the term includes any employee who: (1) lives and works in Massachusetts; (2) resides outside of Massachusetts but performs work within Massachusetts or telecommutes into the Commonwealth, or (3) lives in Massachusetts but telecommutes from Massachusetts for an employer located outside of Massachusetts. In calculating the number of employees, both full-time and part-time employees count. Employers must calculate their headcounts annually by averaging all pay periods over the prior calendar year. For readers who are familiar with the 2015 Earned Sick Leave law, the above definition of covered employer is the same under both laws.
REQUIREMENTS
Job Postings
Covered employers must, commencing on October 29, 2025, disclose the “pay range” for all external and internal job postings. Mindful that many covered employers often rely on recruiters and third-party job sites to post their jobs and recruit candidates, the new law makes it clear that the pay range must be included in each of these and any other resources used to notify prospects of job openings. With respect to who qualifies as a prospect, the guidance from the Attorney General’s office considers anyone who applies for a job to be a prospect, regardless of whether the prospective candidate meets any of the qualifications for the position.
Promotions/Transfers
In addition to having to disclose the pay range for all internal and external job postings, the new law requires employers to disclose the pay range for employee promotions and transfers before the employee accepts the position.
Pay Range Requests by Current Employees
Another requirement of the new Massachusetts Pay Transparency Law is that current employees be permitted to ask their employer to provide pay range information for their own positions. This provision is somewhat analogous to the provision under the Massachusetts Equal Pay Act that allows employees to discuss among themselves how much money they earn. Now, employees may direct their questions to their employer regarding the range being paid to employees with the same job title or to prospective employees if there are active job postings.
It is anticipated that some current employees may earn above the posted range for prospective hires due to their experience or tenure with the employer. Conversely, an employer may need to raise the pay range for new hires—to a level higher than that for current employees in similar roles—in order to attract qualified talent.
In such cases, current employees will have access to the wage or salary range for the new-hire position without needing to make a specific inquiry. This information may be obtained through the job posting itself or by asking the employer about the applicable pay range. Any resulting pay disparities will thereby be more readily identifiable.
Pay Range
The new law requires employers to make a reasonable, good-faith estimate of the pay range for a position at the time it is posted. For hourly positions, this means stating the hourly pay range. For exempt, salaried positions, the employer must provide the annual salary range. If the position also includes commissions, tips, or other forms of compensation, the posting should include a good-faith estimate of those additional amounts as well.
Unlike some other states’ pay-transparency laws, the Massachusetts law does not require employers to include information about benefits such as health insurance, paid time off, or other perks in their job postings.
A common question is whether the pay range in a job posting must reflect what current employees in the same role earn. The answer is no. Employers are only required to disclose the pay range they anticipate offering to new hires for that position. If long-term employees currently earn above that range, the employer does not need to include their higher pay in the posted range.
This approach makes sense, since including pay levels for current employees could mislead applicants about what they can actually expect to earn. Finally, the posted pay range is based on the employer’s good-faith estimate at the time of posting and may be adjusted later as business needs change.
ENFORCEMENT
Violations of the Wage Transparency Act are enforced exclusively by the Massachusetts Attorney General’s office. There is no private right of action by individuals who believe they have been aggrieved by a violation of the new law. Under the new law, the Attorney General’s Office will issue a warning for a first offense, a fine up to $500 for a second offense, a fine up to $1,000 for a third offense, and higher amounts for fourth and subsequent offenses. Of note, the Attorney General’s Office will not pursue financial penalties for the first two years the new law is in effect—provided an employer cures any defects within two business days following receipt of a notice to cure letter from the Attorney General’s Office. The law also includes anti-retaliation provisions, which make it illegal for an employer to retaliate against current or prospective employees who allege violations of the Act.
Joseph Bartulis is a Director/Shareholder at Fletcher Tilton PC and is Chair of the firm’s Labor & Employment Law department. If you have questions, he can be reached at 508.459.8214 or jbartulis@fletchertilton.com.