Massachusetts Releases FAQs for Pay Transparency Law

28 Feb

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Update Applicable to:Effective Date
All Employers with 100 or more EmployeesEEO-1 Forms – (February 1, 2025) February 3, 2025
Salary Ranges Required – October 29, 2025


What happened?

The FAQs for the Massachusetts Salary Range Transparency Act and new EEO reporting requirements were released in January 2025.


Overview:

The Executive Office of Labor and Workforce Development has published FAQs to help employers understand their obligations under the new law.

  • The Workforce Data Reporting FAQs guide the state’s new pay transparency law, formally titled the Frances Perkins Workplace Equity Act.
  • This law includes new workforce data reporting requirements and employer salary range disclosure mandates.


Additional Details

  • New Law:
    • Governor Healey signed the Act Relative to Salary Range Transparency into law on July 31, 2024. It applies to employers with 100 or more employees in Massachusetts.
  • EEO-1 Reporting:
    • Employers with 100 or more employees must submit their most recent federal EEO-1 reports to the Commonwealth by February 1, 2025, and annually thereafter. Reports are submitted through an online portal in PDF, JPG, or PNG format.
    • The same EEO-1 report filed with the EEOC should be submitted. Component 2, which includes W-2 income data, is not currently required.
  • Deadlines:
    • The initial EEO-1 report is due February 1, 2025. Since February 1, 2025, falls on a Saturday, reports will be accepted until February 3, 2025.
    • Other EEO reports (EEO-3, EEO-4, EEO-5) are due biennially.
  • Wage Data:
    • Employers are not required to submit W-2 income earnings data by race/ethnicity, sex, or job category. This may change if the EEOC requires it in the future.
  • Data Usage:
    • The Executive Office of Labor and Workforce Development will compile and publish aggregated data by industry sector. Individual company data will not be made public.
  • Salary Range Disclosure:
    • Starting October 29, 2025, employers must disclose salary ranges for most job postings. Additional guidance on this requirement is expected in the coming months.

“Please mark the effective date on your calendar as a reminder to be fully prepared and ready to ensure compliance with applicable laws and regulations.”


Source References


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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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