Massachusetts is the latest state to mandate salary transparency in job postings and disclosure of demographic and pay data to the government.
On July 31, 2024, Governor Maura Healey signed into law the "Frances Perkins Workplace Equity Act," H.B. 4890. The law is named after Frances Perkins, the first woman to serve in a presidential cabinet and a Massachusetts native.
Starting one year from the date of enactment, July 31, 2025, any employer with 25 or more employees within Massachusetts will be required to disclose the pay range for any job posting. The statute defines "pay range" as the annual salary range or hourly wage range that the employer reasonably and in good faith expects to pay for the position at the time of posting. A "posting" is any advertisement or job posting intended to recruit job applicants for a particular and specific employment position, whether directly or through a third party. Employers must also provide the same information to an internal employee who is offered a promotion or transfer to a new position with different job responsibilities.
For employers that are already subject to federal EEO disclosures (EEO-1, EEO-3, EEO-4, or EEO-5) with 100 or more employees within Massachusetts, the law imposes a new obligation to provide the EEO form to the Massachusetts Executive Office of Labor and Workforce Development. The report must include demographic and pay data information categorized by race, ethnicity, sex and job category.
The Massachusetts Attorney General will enforce this law. Employees, or other private parties, can bring complaints to the state Attorney General, but cannot file lawsuits themselves. For employers that fail to submit an annual report or post salary range information, the attorney general will issue a warning for a first offense, with fines of $500 for a second offense and $1,000 for a third offense. For a fourth or additional offenses, the attorney general can issue civil citations. Within the first two years (until July 31, 2026), the law grants employers a two-business-day grace period to cure a violation upon notice before a fine is imposed.
The law also prohibits employers from retaliating against employees for complaints or seeking to enforce their rights under this law. Employees have a limited private right of action for allegations of discrimination or retaliation under the law.
Employers should consult with experienced counsel to discuss these new posting and disclosure requirements.
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