Key Components of the Massachusetts Pay Transparency Law Take Effect October 29, 2025
The Wage Transparency Act (WTA) was signed into Massachusetts law on July 31, 2024, and was designed to increase equity and visibility in pay ranges in the Commonwealth. Two key components of the WTA are now in effect: (1) the requirement to disclose pay ranges and (2) the requirement to submit Equal Employment Opportunity (EEO) reports to the Secretary of the Commonwealth.
The Requirement to Disclose Pay Ranges
Beginning October 29, 2025, employers with 25 or more employees are required to establish and disclose pay ranges in job postings and to employees. “Pay range” is defined as “the annual salary range or hourly wage range that an employer reasonably and in good faith expects to pay for such a position at that time.” At the same time, employees or prospective employees have a right to know the pay range for a position when applying for a position, upon promotion, transfer, when beginning a new position, or upon request for his or her current position.
Employers are prohibited from retaliating against employees exercising their rights under the WTA.
For the next two years, until October 29, 2027, employers are given 2 business days to cure any defects upon receipt of a Notice to Cure letter from the Attorney General’s office.
The Requirement to Submit EEO Reports
Employers with 100 or more employees who are subject to the federal filing requirements of EEO Data Reports (“Reports”) are required to submit their Reports to the Secretary of the Commonwealth according to a set schedule. It is important to note that this requirement does not impose any new obligations upon covered employers, but simply requires them to report this data to the Commonwealth.
For one year, until October 29, 2026, these employers are given two business days to cure any defects upon receipt of a Notice to Cure letter from the Attorney General’s office.
The Consequences for Failure to Comply
An employer found to have violated either of these requirements is subject to the following penalties:
- a warning for the first offense;
- a fine of not more than $500 for a second offense;
- a fine of not more than $1,000 for a third offense and
- for a fourth or subsequent offense, employers are subjected to the penalties set forth in paragraphs (1) and (2) of subsection (b) of MGL, Chapter 149, section 27C, which include up to a $25,000 fine or up to one year in jail for a first offense, and up to a $50,000 fine or up to two years in jail for subsequent offenses.
Contact an Experienced Employment Law Attorney
If you have any questions about these requirements or the WTA generally, please feel free to contact Lonnie Murray at Parker Scheer. With more than 20 years of experience in employment law and business litigation, Lonnie can help you understand how the changing legal landscape affects your business and position you for success.
