Since 2019 Massachusetts has introduced pay transparency bills including a new bill to require pay data reporting; if passed reporting will begin in 2024.
Massachusetts is close to passing laws requiring covered employers to include wage information in job postings and provide the state with aggregate pay data. The following are current bills addressing pay transparency and pay data reporting now under consideration in the Massachusetts legislature:
- S.1181/SD2331 [current] Employers with 100 or more employees in Massachusetts any time during the prior calendar year subject to EEO-1 or EEO-4 data filing shall provide an industry-based “aggregate wage data report” no later than June 1st beginning calendar year 2024. The data will be published by the executive office of labor and workforce development on their website.
- S.2721, S.1191 and H.1849 – [current] Any employer, public or private, that has 15 or more employees in Massachusetts shall disclose the pay range, annual salary range or hourly wage range in any advertising or posting for a position. An employer shall provide the pay range to an applicant, employee holding the position or to an employee offered a promotion or transfer. Includes an anti-retaliation clause for an applicant or employee opposing or complaining about the act or practice. Failure to disclose a good faith pay range shall be subject to enforcement action.
The following similar bills were proposed in the past, but none have been passed into law.
- H.3963 and H.4464– [2019-2020] A covered employer shall provide the pay scale for a position to an applicant or employee holding such position upon reasonable request.
- H.1950 and S.1208 – [2021-2022] Same as above.
Over the years, pay transparency proponents have strongly believed that it is essential to close the gender wage gap and build trust among applicants and employees.
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According to Forbes magazine, “pay transparency in the United States is headed for a banner year in 2023.” South Carolina [H. 3183], as well as other jurisdictions, have or are currently working on draft transparency legislation.
As state pay transparency and reporting laws continue to increase, employers need to be prepared by adapting and regularly reviewing their pay practices to ensure compliance with the appropriate state laws. OutSolve is prepared to provide clients with Pay Equity Analysis Services or other compliance services, as needed. OutSolve can be reached at info@outsolve.com or by calling 888-414-2410.