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.
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 News: Article 1,
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