Overview The Massachusetts Act Relative to Salary Range Transparency will require “covered employers” to disclose wage and salary ranges in both internal and external job postings for specific positions and to provide this information to applicants and current employees upon request. The law becomes effective October 29, 2025. Employers who are required to file reports with the Equal Employment Opportunity Commission will also be required to file a copy of these reports with the Massachusetts Secretary of State.A ”covered employer” is defined as any public or private employer having at least 25 employees whose primary place of work during the preceding year was in Massachusetts. Included in the head-count is everyone who provided services to the employer for compensation, including full-time, part-time and seasonal service providers. It is not limited to W-2 employees. This includes out-of-state employees who telecommute to a Massachusetts work site and Massachusetts residents who telecommute to an out-of-state work site. The rule applies to all advertisements and internal and external job posting for positions in Massachusetts. It also applies to remote positions if the position is connected to a Massachusetts work site. The pay range means the highest and lowest salary or hourly wage the employer, in good faith, expects to offer at the time of the job posting. If compensation is based on commissions or piece work, the employer must provide a good faith estimate of the expected compensation range. It is also worth noting that the law does not provide a private right of action to employees. Alleged violations must be reported to the Massachusetts Attorney General who has the exclusive responsibility for investigation of complaints and the issuance of penalties. The law provides for the following sanctions: (i) a warning for the first offense; (ii) a fine of not more than $500 for the second offense; (iii) a fine of not more than $1,000 for the third offense; (iv) any subsequent offense could result in fines as high as $25,000. Practical TakeawaysEmployers should first determine whether they meet the definition of covered employer.Update all unfilled job postings to ensure compliance with the new law.Train HR personnel about the requirements of the new law.Establish protocols for internal compliance review of job postings for open positions before they are released.This memorandum is intended to provide general information of potential interest to clients and others. It does not constitute legal advice. The receipt of this memorandum by any party who is not a current client of the Business Law Group does not create an attorney-client relationship between the recipient and the firm. Under certain circumstances, this memorandum may constitute advertising under the Rules of the Massachusetts Supreme Judicial Court and the bar associations of other states.
MASSACHUSETS LAW ON SALARY TRANSPARENCYBECOMES EFFECTIVE ON October 29, 2025 October 2025
