The Massachusetts Wage Transparency Act: Guidance For Employers

Massachusetts has taken a significant step toward pay equity and workplace fairness with the passage of its Wage Transparency Act (the "Act" or formally, An Act Relative to Salary Range Transparency). Signed into law on July 31, 2024, with major mandates effective October 29, 2025, the Act requires covered employers to disclose salary ranges in external and internal job postings and to applicants and employees upon request.

The Act is intended to address persistent wage gaps and provide employees and job applicants with greater transparency around compensation. Below is an overview of the Act's key provisions and practical considerations for employers:

• Who Is Covered?

The Act applies to private and public employers with 25 or more employees whose primary place of work is Massachusetts during the prior calendar year. All full-time, part-time, seasonal, and temporary employees, including remote and hybrid employees whose primary place of work is Massachusetts, are included in the headcount for purposes of calculating the 25-employee threshold.

The Act adopts the same definition of "primary place of work" used by the Attorney General's Office in its Earned Sick Time FAQ's and accompanying regulations.

• What Are the Disclosure Requirements?
  
  
  • Job Postings: Covered employers must include the annual salary or hourly pay ranges in all internal and external postings for positions where the primary place of work is Massachusetts, including on-site, hybrid, and remote positions.
    
    • "Postings" are advertisements intended to recruit job applicants for a particular and specific position and include advertisements on employer websites, job boards, and social media platforms.
    • "Pay range" is defined as the good‑faith minimum and maximum compensation the employer reasonably expects to pay for the role at the time of posting. Overly broad pay ranges may fail to meet this good faith standard.
    • For positions compensated on a commission or piece-rate basis, employers must disclose the commission or piece rate they expect to pay.
    • The Act does not require employers to disclose information on benefits or other forms of compensation provided for the position, although employers may choose to do so.
      
      
  • Disclosure to Applicants: If a job is not publicly posted, employers must provide the pay range to an applicant upon request.
    
    
  • Disclosure to Current Employees: Employers must provide the pay range to: (a) employees for their current position, upon request, regardless of whether a vacancy for the position exists, and (b) employees offered a promotion or transfer to a new position with different job responsibilities.
    
    
• Annual Workforce Demographic Reporting (EEO Submission)

Employers with 100+ employees who already file federal EEO reports must submit their EEO demographic data to the Secretary of the Commonwealth annually. This includes workforce race/ethnicity data, gender data, and job category breakdowns. The Commonwealth may publish this data in aggregated form.

• Anti-Retaliation

The Act prohibits employers from retaliating against an employee or applicant who requests a pay range, raises concerns, files a complaint, or participates in a proceeding under the Act.

• Enforcement and Penalties

The Massachusetts Attorney General enforces the Act. Penalties for violations include (a) warnings, (b) fines, (c) orders to comply, and (d) Investigations triggered by complaints or audits.

• Wage Transparency Laws in Other States

Massachusetts joins a growing number of jurisdictions requiring employers to disclose salary ranges in job postings and provide pay information to applicants and employees. While the core concept is shared across many states, each jurisdiction has its own coverage thresholds, reporting rules, and enforcement style.

Employers with employees in multiple states or recruiting nationally are encouraged to familiarize themselves with the requirements of the other major pay‑transparency states such as California, Colorado, Illinois, New York, and Washington.

• Next Steps for Employers: To prepare for compliance under the Act, employers may wish to consider the following steps:
  
  
  • Determine coverage under the Act. When calculating headcount, include positions that can be performed at a Massachusetts worksite, as well as hybrid and remote positions where Massachusetts would be the primary place of work.
    
    
  • Set reasonable, good faith salary ranges. Ensure salary ranges are documented, consistent, justifiable, and aligned with actual pay practices. Consider performing a compensation audit to help identify gaps or inconsistencies.
    
    
  • Review job posting practices. Identify all sources of advertisements, including those posted by third parties, and provide compliant pay ranges for covered positions.
    
    
  • Update job posting templates. Add pay range fields to posting templates used internally and those used by third parties acting on your behalf.
    
    
  • Train hiring and HR personnel. Focus training on how to interview candidates, discuss pay ranges and avoid wage history, respond to requests for pay ranges, and avoid claims for retaliation.
    
    
  • Consider a national compliance strategy. Some employers may choose to adopt a common national template that complies with the most stringent state wage transparency laws. For instance, Colorado's law applies to employers with one or more workers in the state, while Washington's law requires disclosures to include a general description of benefits and other compensation and permits a private right of action.

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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.