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Massachusetts To Require Pay Transparency and Pay Data Reporting

08 Nov


Update Applicable to:

Pay Transparency Applicability: All Massachusetts employers with 25 or more workers and multi state business with 25 or more workers in the State.

Pay Data Reporting Applicability: All Massachusetts employers and multi-state businesses with at least 100 or more full-time workers at any time during the prior calendar year and subject to the filing of EITHER the EEO-1, EEO-3, EEO-4, and EEO-5 data report. The bill has not been signed into law yet.

What happened?

The Massachusetts House and Senate overwhelmingly supported and passed a bill (H.B. 4109) that mandate employers to comply with 2 new requirements, depending on the employer size.

What do employers need to do?

Employers should review the resources above, as well as review and update their procedures and practices to properly comply with the bill new requirements, if the bill passes.

“…employers should consider…conducting an audit…to determine whether any gaps in pay equity exist. Gaps in wages for similarly situated employees must be supported by objective measures including, for example, employee location, credentials and qualifications, seniority, and experience.” per the Mintz Law Firm article.

What are the details?

The bill will require employers with over 25 employees in the Commonwealth “…to (i) post the “pay range” for a particular position on job postings, (ii) disclose the pay range for a position to employees who are offered a promotion or a transfer to a new position with different job responsibilities, and (iii) provide the pay range for a particular position to an employee holding the position or to an applicant for the position upon request.” Law Firm Seyfarth.

Additionally, the legislation requires employers with at least 100 employees to submit aggregated EEO data annually.

“The reports would require the disclosure of workplace demographics and pay data categorized by race, ethnicity, sex, and job category. These aggregated reports will be published by the Massachusetts Executive Office of Labor and Workforce Development on its website.” Law firm Fisher Phillips.

It is important to note that the EEO reports submitted by an employer will not be considered as “public records” for the purpose of disclosure under the Massachusetts Public Records Law, but these records may still be disclosed during litigation. It is important to understand that critical factors like employees’ education, experience, or other qualifications will not be included in such data.

The Attorney General’s Office enforces the law and may impose fines for non-compliance, including failing to submit EEO reports or provide pay range information. No legal action allowed for employee or applicant grievances.

For more information, please see the links below:

Law Firm Articles: Article 1, Article 2, Article 3, Article 4

Law News: Article 1,

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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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