ARTICLE
3 October 2025

Massachusetts Pay Transparency Requirements Take Effect October 29, 2025

GP
Goodwin Procter LLP

Contributor

At Goodwin, we partner with our clients to practice law with integrity, ingenuity, agility, and ambition. Our 1,600 lawyers across the United States, Europe, and Asia excel at complex transactions, high-stakes litigation and world-class advisory services in the technology, life sciences, real estate, private equity, and financial industries. Our unique combination of deep experience serving both the innovators and investors in a rapidly changing, technology-driven economy sets us apart.
Starting October 29, 2025, Massachusetts employers with 25 or more employees must follow new pay transparency rules under An Act Relative to Pay Range Transparency.
United States Massachusetts Employment and HR
Jennifer Merrigan Fay’s articles from Goodwin Procter LLP are most popular:
  • within Employment and HR topic(s)
  • with readers working within the Media & Information and Retail & Leisure industries

Starting October 29, 2025, Massachusetts employers with 25 or more employees must follow new pay transparency rules under An Act Relative to Pay Range Transparency. Employers must establish pay ranges and disclose them in job postings and share pay details with employees and applicants upon request or during hiring, promotion, or transfer. This puts Massachusetts in line with other states promoting fair compensation through pay transparency.

What is a "Covered Employer"?

The wage transparency requirements under the law pertain to employers with 25 or more employees in Massachusetts. This encompasses both in-state and out-of-state employers who have at least 25 employees whose "primary place of work" is in Massachusetts during the previous calendar year. Compliance necessitates that employers calculate their headcount annually, averaging all payroll periods within the year, and including all full-time, part-time, seasonal, and temporary employees.

According to FAQs published by the Massachusetts Attorney General's Office ("AGO") earlier this year, the definition of "primary place of work" is consistent with its definition in the Massachusetts Earned Sick Time regulations and accompanying AGO guidance. For most employees, their "primary place of work" is where they perform the majority of their job duties. Out-of-state remote employees count towards an employer's Massachusetts headcount only when their "primary place of work" is Massachusetts. For example, if an employee telecommutes to a Massachusetts worksite, Massachusetts will be considered the "primary place of work" even though the employee does not physically work in Massachusetts.

What is a "Pay Range"?

A pay range is defined as the annual salary range or hourly wage range that the employer "reasonably and in good faith" expects to pay for such position at that time. Pay ranges should reflect the actual compensation that the employer reasonably expects to pay for the position, and should not be overly broad ranges that do not accurately represent the pay for the role. According to the FAQs, if the position's hourly or salary wage is based on a piece rate or commissions, then the piece rate or commission range must be included in the job posting.

These wage transparency requirements apply to all positions that are or will have a primary place of work in Massachusetts. This includes positions that can be performed remotely to a Massachusetts worksite and remote workers with a primary place of work in Massachusetts.

What Are the Wage Transparency Requirements?

Starting October 29, 2025 employers must provide pay range information for each "particular and specific employment position":

  • In all internal or external job postings, including postings made by third-party recruiters;
  • To any employee who applies for or is offered a promotion or transfer to a new position with different job responsibilities;
  • Upon request by an applicant for a position; and
  • Upon request to a current employee who holds the position, even if there is no vacancy in the role.

Does the Law Prohibit Retaliation?

Yes. The law includes broad anti-retaliation provisions that protect applicants and employees who request pay range information, make a complaint to their employer or the AGO, participate in an investigation, or otherwise assert their rights under the law.

What Are the Penalties for Noncompliance?

Employees may file complaints with the Massachusetts Attorney General's Civil Rights Division.

The penalties for non-compliance are:

  • First offense: warning
  • Second offense: not more than $500
  • Third offense: not more than $1,000
  • Fourth and subsequent offenses: higher penalties under Chapter 149, Section 27C (up to $25,000, depending on the circumstances)

For the first two years the wage requirements are in effect (until October 29, 2027), the law grants employers a two-business-day grace period to cure a violation upon notice before a fine is imposed.

What Should Employers Do?

  • Review and update compensation practices, including reviewing and establishing pay ranges for all positions.
  • Revise internal and external job postings to include pay ranges and ensure the employer's third-party recruiters are complying with the law's posting requirements.
  • Develop protocols for responding to pay transparency requests from applicants and current employees.
  • Train HR and management on the law's requirements and non-retaliation protections.
  • Implement a system for maintaining records of pay ranges and the rationale for determining those ranges.
  • Consider conducting a pay equity audit to ensure compliance with Massachusetts' Equal Pay Act and other applicable pay equity laws.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More