Follow us on LinkedIn to see future News.
August 22, 2024
On July 31, 2024, Massachusetts Governor Healey signed into law An Act Relative to Salary Range Transparency. The Act contains two pay transparency requirements – (1) wage data reports, the first of which is due by February 1, 2025; and (2) pay range disclosures that will take effect on October 29, 2025.
Wage Data Reports
The Act’s wage data reporting requirement applies to public or private employers (1) that are subject to federal wage data filing requirements and (2) that employ 100 or more employees in the Commonwealth. Those employers must submit the EEO-1, or the Employer Information Report used for reporting to the U.S. Equal Employment Opportunity Commission, to the Secretary of the Commonwealth.
The Act further requires submission to the Secretary of the EEO-3 (local unions), EEO-4 (state and local government), and EEO-5 (elementary and secondary school staff). The first EEO-1, EEO-3, and EEO-5 reports are due by February 1, 2025, and the first EEO-4 reports are due by February 1, 2026.
The Secretary will provide the wage data reports to the Executive Office of Labor and Workforce Development (EOLWD). The EOLWD will publish an aggregate wage data report grouped according to the applicable industry and that aggregate report will be available for public review.
Pay Range Disclosures
The Act’s pay range disclosure requirements apply to public and private employers with 25 or more employees in the Commonwealth. Those employers, or their agents, must:
The Act defines “pay range” as the annual salary range or hourly wage range that the covered employer reasonably and in good faith expects to pay for the position at that time.
A “posting” is any advertisement or job posting intended to recruit job applicants for a position, including, but not limited to, recruitment by an employer or through a third party.
No Discrimination or Retaliation
The Act prohibits discrimination or retaliation against any employee or applicant who has (1) taken action to enforce their rights pursuant to the Act; (ii) made any complaint to their employer, an agent of their employer, or the Attorney General regarding an alleged violation of the Act; (iii) instituted, or caused to be instituted, any proceeding under the Act; or (iv) testified or is about to testify in any such proceeding.
Penalties
The Attorney General of Massachusetts is authorized to enforce the requirements of the Act through injunctive or declaratory relief. No private right of action exists.
First-time offenders will receive a warning. A second offense comes with a fine up to $500. A third-time offender will be fined up to $1,000. Subsequent offenses are subject to the employer civil citation regime and penalty scale contained in Massachusetts General Laws, chapter 149, section 27C(b). NOTE: For the first two years after the Act’s effective date, a covered employer will have two business days after receiving notice of a violation to cure the violation before a fine is imposed.
More Information Is Forthcoming
The Act mandates that, not later than six months after its effective date, the Attorney General of Massachusetts conduct a public awareness campaign to provide information to covered employers regarding the Act’s requirements. The campaign will include, but not be limited to, making information available on the Attorney General’s website and otherwise informing covered employers of the Act’s requirements.
Employer Takeaways
Employers covered by the Act should monitor the Attorney General’s public awareness campaign; review their job posting practices to ensure that postings include pay ranges and to ensure that personnel responsible for hiring and managing employees is trained on the Act; and update their federal Equal Employment Opportunity reporting process to provide for filings with the Commonwealth.
The author of this article, Patricia Tsipras is a member of the Bar of Pennsylvania This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Pennsylvania, Massachusetts, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.
