- Executive Office of Labor and Workforce Development
Governor Healey recently signed a new wage transparency law aimed at promoting equity in the workplace. So, what does this new law do?
The law requires employers to share pay ranges in job postings and protects the rights of job applicants and employees to request the pay range for a position. These provisions apply to all Massachusetts employers with 25 or more employees. Posted salary ranges must represent a realistic range of the expected compensation for the role, meaning no posts with something as broad as $20,000 to $200,000.
Although this law doesn't take effect until October 2025, there are compelling reasons why employers should start posting accurate salary ranges now.
Wage Transparency Gives Employers a Recruitment Edge
Employers and jobseekers may invest considerable time and effort in the interviewing process, only to discover that salary expectations are far apart. By posting salary ranges upfront, everyone is on a level playing field. This transparency attracts qualified candidates who know what to expect from the start.
Wage Transparency Fosters Trust and Collaboration
According to a Glassdoor report, 70% of employees believe salary transparency improves job satisfaction. When employers act in good faith and take steps toward pay equity, they show their employees that they can be trusted. This openness strengthens relationships, boosts employee loyalty, and improves morale, creating a positive workplace culture.
Wage Transparency Reduces Pay Gaps and Boosts Massachusetts’ Competitiveness
Wage transparency isn't just about fairness—it’s a strategy for reducing historic pay gaps and making Massachusetts more competitive. Pay disparities related to race, gender, and age have long been an issue. By embracing wage transparency, Massachusetts businesses can attract a diverse and talented workforce. Companies that value equal pay build trust and demonstrate their commitment to closing wage gaps.
Ultimately, wage transparency positions Massachusetts as a great place to work and do business. Companies that adopt these practices become leaders in their industries, drawing top talent and strengthening the state’s reputation as a hub for fairness and opportunity.
