Upcoming Massachusetts Pay Transparency Requirements

Commencing October 29, 2025, Massachusetts will join 14 other U.S. states in requiring certain employers to disclose wage pay ranges both in their public job postings and internally to employees who request the information. The requirement is mandated by the Massachusetts law entitled “An Act Relative to Salary Range Transparency” which aims to increase pay transparency and equity in the Commonwealth.

What employers will this effect?

This law applies to all employers with 25 or more employees having a primary place of work in Massachusetts during the prior calendar year, regardless of whether the employer itself is based in Massachusetts.

• • • Massachusetts is generally deemed to be an employee’s primary place of work if the employee works more hours in Massachusetts than in any other state. This includes work completed both (i) remotely by an employee (i.e., outside of Massachusetts) who reports to a Massachusetts-based worksite and (ii) by an employee living in Massachusetts who works remotely for a non-Massachusetts worksite.
    • The 25-person headcount includes full-time, part-time, seasonal and temporary workers who provide services to an employer in exchange for wages, pay or other compensation. Employers should determine their employee count annually by averaging the number of employees on the payroll across all pay periods for the year.

What do employers have to disclose?

Employers are required to disclose a pay range (i) in the job posting for any position, (ii) to current employees in connection with a promotion or transfer, or (iii) to current employees upon request regarding their current position.  

• • • A pay range must be included for any publicly or internally posted positions where the primary place of work is Massachusetts.  This includes roles that could be performed remotely in Massachusetts.
    • The pay range should list the annual salary range or hourly wage range that the employer “reasonably and in good faith expects to pay” for that position. To reduce risk, employers should conduct market research and review the salaries of incumbents in the position to determine appropriate salary ranges.

What are the consequences for non-compliance?

Failure to make the required disclosures or retaliation against employees seeking to exercise their rights under this law comes with fines escalating with each offense.

Are there any other disclosure requirements under the law?

In addition to the required pay range disclosures that will soon be in effect, the law currently requires employers with 100 or more employees who are already subject to the federal filing requirements of EEO Data Reports to submit those reports to the Secretary of the Commonwealth for transmission to the Executive Office of Labor and Workforce Development.  Employers that are required to file federal EEO-1 reports must submit these to Massachusetts annually, while employers that are required to file federal EEO-3 and 5 reports must submit them in odd numbered years and those required to file EEO-4 reports must submit them in even numbered years. This EEO Data Reports disclosure obligation does not require the disclosure of different or additional information, but rather extends certain federal level reporting requirements to Massachusetts.

What steps should employers take?

As the October 29 effective date for pay disclosure approaches, employers should consider taking the following steps:

• • • Determine Applicability - The law applies to all employers with 25 or more employees having a primary place of work in Massachusetts.  Determine to what extent the law applies to your business.  Remote and hybrid work arrangements can lead to uncertainty regarding whether certain individuals count against the 25 employee threshold, so careful analysis of the law is required.
    • Address Employee Requests - Begin establishing internal policies for how to respond to employees pay range requests.
    • Existing Job Postings - Ensure new job postings are compliant with the disclosure requirement, and update existing job postings that will continue to be posted after October 29, 2025 to include the needed pay range disclosures.
    • Update Anti-Retaliation Policies - The law prohibits employers from retaliating against an employee or applicant inquiring about pay ranges. Consider updating your current policies and provide training on these new restrictions.
    • Compensation Practices - Examine your pay practices to ensure that salary determinations are equitable and defensible.

For more detailed information on the above, or compliance assistance, please contact a member of the Crowell & Moring team.