Pay Transparency in Massachusetts

This page provides answers to frequently asked questions regarding An Act Relative to Salary Range Transparency.

Background

On July 31, 2024, Governor Healey signed An Act Relative to Salary Range Transparency into law to increase equity and transparency in pay in the Commonwealth.

The Act requires certain private employers to submit a workforce demographic data report on an annual basis. Starting February 1, 2025, employers with 100 or more employees who are subject to federal filing requirements must submit their most recent EEO-1 reports to the Commonwealth. Employers who are required to submit demographic EEO Data Reports must also do so with the Office of the Secretary of the Commonwealth of Massachusetts here: EEO Wage and Workforce Data Reports. For specific information about filing the required reports, please see: https://www.mass.gov/info-details/workforce-data-reporting-faqs.

Starting October 29, 2025, the Act also requires employers with 25 or more employees to disclose wage ranges in job postings, to applicants, and current employees upon request. 

On March 6, 2025 and April 8, 2025 the Attorney General's Office will be hosting webinar trainings for employers on the requirements of the law and for employees on their rights under the law. The webinars will be recorded and available to access after these dates. Register here for the March 6 training. Register here for the April 8 training.

Guidance on Employers’ Obligations Under the Wage Transparency Act

On July 31, 2024, the Governor signed An Act Relative to Salary Range Transparency (“Wage Transparency Act”) into law to increase equity and transparency in pay in the Commonwealth. The Attorney General’s Office is releasing this initial guidance for employers on the requirements of the law and for employees on their rights under the law. 

Why Wage Transparency? 
Research shows that salary range transparency in the hiring process is one of the best tools to close gender and racial wage gaps. Furthermore, research has found that most workers are more likely to consider applying to a job, and trust the associated workplace, if the pay range is listed in the job posting. Beyond ensuring that workplaces in the Commonwealth are more equitable, the Pay Transparency Act will help strengthen the Massachusetts economy and its competitiveness by attracting and retaining the best talent.

How Does the Act Ensure Increased Transparency in Wages? 
The Act ensures increased transparency in wages in three main ways. 

First, any employer with 25 or more employees in the Commonwealth must disclose the pay range in the job posting for any position. 

Second, employees or prospective employees have a legal right to know the pay range for a position upon applying for a position, promotion, transfer, or beginning a new position with an employer with 25 or more employees in the Commonwealth. Employees also have the right to request the pay range for their current position. The law protects employees who have been retaliated against for exercising this right. 

Third, the law also requires employers of a certain size to report data and demographic information by submitting their “EEO Reports” to the Secretary of the Commonwealth.

How Can Employers Ensure Compliance with the Wage Transparency Act? 
There are two key components of the Wage Transparency Act that Covered Employers must comply with: the requirements to (1) disclose pay ranges and (2) to submit EEO reports to the Secretary of the Commonwealth.

Requirement to Disclose Pay Ranges 

• Beginning October 29, 2025, the law requires employers with 25 or more employees (“covered employers”) to establish and disclose pay ranges in job postings and to employees. A “pay range” is “the annual salary range or hourly wage range that the employer reasonably and in good faith expects to pay for such a position at that time.” 
• Also beginning October 29, 2025, employees or prospective employees of covered employers have a right to know the pay range for a position when applying for a position, upon promotion, transfer, or beginning a new position, and on request for their current position. Covered employers are prohibited from retaliating against employees who seek to exercise their rights under the law. 
• Employers are not precluded from electing to disclose pay ranges in accordance with the law prior to October 29, 2025.

A covered employer found to have violated this requirement is subject to the following penalties:

• warning for the first offense; 
• a fine of not more than $500 for the second offense; 
• a fine of not more than $1,000 for the third offense; and 
• a fourth or subsequent offense shall be subject to paragraphs (1) and (2) of subsection (b) of General Laws Chapter 149, Section 27C.

Until October 29, 2027, covered employers will have 2 business days to cure defects upon receipt of a Notice to Cure letter from the Attorney General’s Office.

Requirement to Submit EEO Data Reports 

• The law also requires employers with 100 or more employees who are subject to the federal filing requirements of EEO Data Reports to submit their EEO Data Reports to the Secretary of the Commonwealth for transmission to the Executive Office of Labor and Workforce Development (EOLWD). 
  • This provision does not create any new workforce data collection requirements for Covered Employers. Employers who already submit the following reports to the EEOC will now submit these reports to the Secretary of the Commonwealth as well, according to the schedule outlined below:

    • Employers who file:	Must file EEO report with the Secretary:	By:	Starting in year:
      EEO-1	Annually	February 1	2025
      EEO-3	Odd Numbered Years	February 1	2025
      EEO-4	Even Number Years	February 1	2026
      EEO-5	Odd Numbered Years	February 1	2025

A covered employer who is found to have violated this requirement is subject to the following penalties: 

• warning for the first offense; 
• a fine of not more than $500 for the second offense; 
• a fine of not more than $1,000 for the third offense; and 
• a fourth or subsequent offense shall be subject to paragraphs (1) and (2) of subsection (b) of General Laws Chapter 149, Section 27C.

Until October 29, 2027, covered employers will have 2 business days to cure defects upon receipt of a Notice to Cure letter from the Attorney General’s Office. 

What if an employee or prospective employee believes their rights have been violated? 
We encourage you to file a complaint with the Attorney General’s Civil Rights Division. You can find more information at https://www.mass.gov/how-to/file-a-civil-rights-complaint 

Pay Transparency FAQ

1. Do out-of-state employers have to comply with the law? 

Employers with 25 or more employees with a primary place of work in Massachusetts during the prior calendar year must comply with the wage transparency requirements of Chapter 149 Section 105F. Employers with 100 or more employees with a primary place of work in Massachusetts must also comply with the reporting requirements of Chapter 149 Section 105E. The definition of “primary place of work” is consistent with its definition in the Attorney General’s Office Earned Sick Time FAQs, and accompanying regulations, 940 CMR 33.00.

2. What type of employees count for the purpose of determining an employer’s headcount? 

Any person who performs services for an employer for wage, remuneration, or other compensation is an employee and must be included in the employers’ headcount. This includes all full-time, part-time, seasonal, and temporary employees.

3. Do out-of-state remote employees count towards an employers’ headcount? 

Only out-of-state remote employees whose primary place of work is Massachusetts count towards a Massachusetts employer’s headcount.

4. How and when will an employer’s headcount of Massachusetts employees be calculated? 

Employers should calculate their headcount once per year, as an average over all of the payroll periods of that year. Employers should do this by adding the number of employees, including full time, part-time, seasonal, and temporary employees, on the payroll during each pay period of the year and dividing by the number of pay periods. If the employer has pay periods with no one on the payroll, the number of employees counted for that pay period is zero.

5. Is the salary range posting requirement limited to jobs in Massachusetts? What about jobs that can be done anywhere, including Massachusetts? 

Section 105F’s requirement to disclose the pay range in the posting of a position applies to all positions where the primary place of work is Massachusetts. This includes positions that can be performed remotely to a Massachusetts worksite and remote workers with a primary place of work in Massachusetts.

6. How should employers handle the pay range for positions that are tipped or commission-based? 

Section 105F 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 such position at that time. If the position’s hourly or salary wage is based on a piece rate or commission, then the piece rate or commission range the employer reasonably expects to pay for the position must be included in the job posting.

7. How should the law define “applicant?” Must the person be able to demonstrate a reasonable level of qualification for the position? 

All individuals who are applying for a particular or specific employment position are applicants. The law does not limit the definition of “applicant” based on an individual’s level of qualification for the position.

8. Must employers who are not currently required by the EEOC to submit EEO reports prepare and submit such reports to the Commonwealth? 

Only employers who are required by the EEOC to file EEO reports must submit those EEO reports to the Commonwealth.

9. Is there a requirement to share a pay range with an incumbent or only if there is a vacancy in that role? 

The law requires a Covered Employer, or its agent, to provide the pay range for a particular and specific employment position to an employee holding such position upon request, even if there is no vacancy in that role.

10. Are employers who do not currently have to submit EEO reports to the EEOC subject to the reporting requirements in 105E? 

Only employers who are required to submit the following reports to the EEOC will be required to submit these reports to the Secretary of the Commonwealth as well, according to the schedule outlined below: 

Employers who file:	Must file EEO report with the Secretary:	By:	Starting in year:
EEO-1	Annually	February 1	2025
EEO-3	Odd Numbered Years	February 1	2025
EEO-4	Even Years	February 1	2026
EEO-5	Odd Numbered Years	February 1	2025

11. How do employers file their EEO reports with the Secretary of the Commonwealth? 

Employers can file their EEO reports at such time as they are required to, at the link here: https://www.sec.state.ma.us/divisions/corporations/eeo-data-reports.htm

12. Are there any parameters around what constitutes a “pay range”?

In stating the minimum and maximum annual salary or hourly wage for a position, the range may extend from the lowest to the highest annual salary or hourly wage the employer reasonably and in good faith believes at the time of the posting it would pay for the advertised job, promotion or transfer opportunity.

13. What if an employee or prospective employee believes their rights have been violated? 

We encourage you to file a complaint with the Attorney General’s Office. You can find more information at https://www.mass.gov/how-to/file-a-civil-rights-complaint