Massachusetts is implementing significant changes to wage reporting and pay transparency with the introduction of An Act Relative to Salary Range Transparency.The new law, which imposes multiple requirements on employers, includes an upcoming reporting deadline for larger businesses and a sweeping pay transparency mandate set to take effect in the fall.
Upcoming Reporting Deadline for Larger Employers
As part of the law’s first phase, employers with at least 100 employees in Massachusetts during the previous calendar year and who are required to submit federal wage data reports must also provide the same information to the Commonwealth. These reports—EEO-1, EEO-3, and EEO-5-are due by February 3, 2025.
According to guidance from the Executive Office of Labor and Workforce Development, employers are not required to change or augment their existing Equal Employment Opportunity (EEO) filings. Instead, they must simply submit an exact copy of the report they file with the federal government. While these reports will be used for statistical analysis, they will remain confidential and will not be subject to public records requests.
Pay Transparency Requirements Begin in October
Starting October 29, 2025, a broader set of rules will go into effect, affecting any employer with at least 25 employees in Massachusetts. Under this requirement, businesses must:
- Include salary ranges in all job postings
- Provide salary range information for internal promotions and transfers
- Disclose salary ranges for current employees upon request
Employers must provide either an annual salary range or an hourly wage range that is determined in good faith based on what they reasonably expect to pay for the role.
Protections Against Retaliation
The law also includes anti-retaliation protections, ensuring that employees and job applicants cannot be penalized for seeking to enforce their new rights. Employers are prohibited from taking adverse actions—such as termination—against individuals who:
- File complaints about violations of the law
- Report concerns to their employer or the attorney general
- Participate in investigations or legal proceedings related to the law
Impact on Massachusetts Employers
This law represents a major shift for employers in Massachusetts, requiring greater transparency in job postings and internal pay structures. As businesses prepare for the February reporting deadline and the October implementation of pay transparency requirements, they should review their wage reporting processes and ensure compliance with the new regulations.