Massachusetts Takes Major Leap in Pay Equity with New Transparency Law
Massachusetts is leading the charge in pay equity with the introduction of House Bill 4890 (HB 4890), the "An Act Relative to Salary Range Transparency Act," effective July 31, 2025. This new law expands on the Massachusetts Equal Pay Act and aims to enhance salary transparency and address pay discrimination.
Key Highlights:
Salary Range Disclosure: Employers with 25+ employees must list specific salary ranges in job postings, promoting greater transparency for potential candidates.
Wage Data Reporting: Employers with 100+ employees must submit detailed wage data reports to the Secretary of the Commonwealth, similar to requirements in California and Illinois.
Protection from Retaliation: The Act safeguards employees from retaliation related to salary inquiries or complaints under the new law.
Penalties: Non-compliance can result in fines ranging from $500 to $25,000. The Attorney General will handle enforcement, and there’s no provision for private lawsuits, though employee protection against retaliation is emphasized.
Impact on Employers:
Companies will need to revise their hiring practices, update job descriptions, and conduct regular pay equity audits to align with the new regulations. Proactive compliance can enhance workplace transparency, attract talent, and mitigate legal risks.
As Massachusetts sets a precedent, other states may follow, making it crucial for employers to stay informed and consult with experts to navigate these changes effectively.