New MA Salary Transparency Law Takes Effect: What It Means For Employers, Employees

MASSACHUSETTS — The new Massachusetts law requiring businesses and public entities to disclose salary ranges and collect more comprehensive hiring data — designed to increase equity in employment — takes effect as of Wednesday.

Gov. Maura Healey signed the Act Relative to Wage Transparency into law last July, with the 15-month ramp-up period allowing businesses to become familiar with and prepare for the new regulations.

Healey said at the time that the new law is "an important step toward closing wage gaps, especially for People of Color and women." She said the intent of the law is also to build diverse teams of employees.

The new requirements mean that businesses and public entities with 25 or more employees must disclose the pay range of a position to an employee who is offered a promotion or transfer and, on request, provide the pay range to employees who already hold that position or who are applying for it.

The Attorney General's Office is charged with enforcing the law with the ability to impose fines and civil citations for violations.

"The Wage Transparency Law is an important step in improving transparency and closing wage gaps that have held workers — especially for women and people of color — back for too long,” said AG Andrea Campbell on Wednesday. "My office remains committed to ensuring that both employers and employees understand their rights and obligations."

The law also provides that employees can not be retaliated against for asking salary ranges when applying for a job or promotion.

Public and private employers must also submit wage data to the state, which will then be published through aggregate wage reports by the Executive Office of Labor and Workforce Development.

Penalties for non-compliance escalate with the first offense being a warning, the second offense a fine of up to $500, the third offense a fine of up to $1,000 and each subsequent offense a fine of up to $25,000.

For the first two years of the law, employers have two business days after notice to cure a violation before a fine is imposed.

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(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. X/Twitter: @Scott_Souza.)