A new pay transparency law in Massachusetts will enter into effect on October 29, 2025. This law requires employers in the state to provide salary ranges in job postings and share compensation details with current employees. This legislation aligns with a growing national trend toward promoting greater pay equity and workplace transparency.
Employers with operations in Massachusetts should begin preparing now to ensure full compliance with pay transparency regulations. Massachusetts joins states such as California, New Jersey and New York in strengthening efforts to promote equitable and transparent compensation practices.
What are Pay Transparency Laws?
Pay transparency laws are regulations that require employers to share information about compensation with job applicants and employees. These rules aim to promote fair pay in the workplace. They increase visibility into wage practices and help address pay gaps.
What the Massachusetts Pay Transparency Law Requires for Employers
Under the Act, private employers with 25 or more employees in Massachusetts must meet several key requirements:
Include pay ranges in job postings. Employers must include the salary or hourly wage range in all job advertisements for positions located in Massachusetts. While the state’s Temporary Workers’ Rights law already required pay disclosure for temp jobs, the new Act applies to all covered job postings.
Provide pay ranges for promotions or transfers. When offering an employee a promotion or transfer to a position with different job responsibilities, employers must disclose the pay range for that role.
Provide pay ranges upon request. Current employees can request and receive the pay range for their existing position at any time.
The Act also includes anti-retaliation protections, prohibiting employers from penalizing or discriminating against employees or applicants who exercise their rights under the law.
Penalties and Grace Period Under the Massachusetts Pay Transparency Law
For the first two years after the law goes into effect – from October 29, 2025 to October 29, 2027, employers will have a short grace period. If notified of a violation, an employer has two business days to correct it without penalty.
After this period, penalties increase progressively:
First offense: Warning
Second offense: Up to $500 fine
Third offense: Up to $1,000 fine
Subsequent offenses: Up to $25,000 fine
The Massachusetts Attorney General's Office (AGO) will enforce the law. Notably, individuals cannot bring private lawsuits for violations, as the law does not provide a private right of action.
To avoid violations by the AGO, companies should develop a pay transparency compliance checklist ahead of the October 29, 2025 effective date.
Massachusetts AGO Guidance on Pay Transparency Law: Key Clarifications
The Massachusetts AGO has issued FAQs to help employers interpret the Act. Some important clarifications include:
Covered employers. Any employer with 25 or more employees whose primary place of work is in Massachusetts during the prior calendar year. This includes full-time, part-time, seasonal, and temporary employees.
Covered job postings. The pay range disclosure applies to all positions based in Massachusetts, including roles that can be performed remotely for a Massachusetts worksite and employees working remotely whose primary place of work is in Massachusetts.
Definition of a pay range. Employers must disclose the annual salary or hourly wage range that they expect to pay for the position at the time of posting. This should reflect the lowest to highest compensation the employer would consider for the role.
How Atlas HXM Can Help
For global organizations hiring in Massachusetts or expanding in the U.S., keeping up with evolving pay transparency regulations can be tricky.
With Atlas HXM's Employer of Record (EOR) and compliance expertise, businesses can confidently navigate new employment laws, ensuring every job posting, pay practice, and promotion process remains compliant.