Would you share salary details if you knew doing so could reduce workplace pay gaps? Massachusetts businesses are facing this challenge under the state's evolving pay transparency and wage equity laws.
For years, employees have struggled with pay secrecy, wage disparities, and unclear compensation policies. Studies show that women in Massachusetts still earn about 83 cents for every dollar a man makes—a gap that widens for women of color. Meanwhile, nearly 68% of employees would switch jobs for better pay transparency.
To tackle these issues, Massachusetts has taken a firm stance on pay equity, banning salary history inquiries and requiring fair pay for comparable work. But compliance isn't just about avoiding penalties—it's about fostering trust, improving retention, and ensuring fairness.
This guide explains the Massachusetts Pay Transparency Law and the Massachusetts Equal Pay Act (MEPA) in detail, highlighting what HR leaders and employers need to know.
Pay transparency refers to the practice of openly sharing salary information within an organization, ensuring employees and job candidates understand how compensation is determined. This shift is gaining traction as more states, including Massachusetts, implement laws to combat wage disparities, promote fairness, and increase accountability.
In a traditional hiring model, employers often keep salary details hidden until the final stages of recruitment, leaving candidates in the dark. This lack of transparency has contributed to pay gaps, salary negotiations based on past earnings, and unfair compensation practices.
These are a few requirements as listed under the new pay transparency law:
Employers must provide a clear salary range for a position when an applicant requests it. Additionally, salary details must be disclosed when an existing employee is promoted or transferred into a new role.
This requirement ensures that compensation decisions are based on fair and transparent criteria rather than hidden pay structures.
Employers cannot ask candidates about their previous wages at any stage of the hiring process. This rule prevents historical wage discrimination from affecting future pay and ensures that salary offers are based on the role’s market value and the candidate’s qualifications rather than past earnings.
By eliminating salary history as a factor in negotiations, Massachusetts is promoting fairer compensation practices.
Massachusetts law prohibits policies or contracts that attempt to enforce pay secrecy. This provision aims to foster transparency within workplaces and allow employees to advocate for fair pay.
Employees have the right to discuss their wages with coworkers, and employers cannot restrict or penalize them for doing so.
Workers performing comparable jobs must receive equal pay, regardless of gender or other protected characteristics. Massachusetts defines comparable work based on skill, effort, responsibility, and working conditions rather than job titles alone.
This means that employees with similar roles and responsibilities should be paid fairly, even if their job titles differ.
To stay compliant and minimize legal risks, businesses should routinely review their compensation structures to identify and rectify any wage disparities. Companies that actively perform pay equity audits and tackle disparities may gain legal protection against certain claims.
Performing these audits not only ensures compliance but also helps maintain workplace fairness and employee trust.
With pay transparency gaining national attention, Massachusetts could introduce stronger salary disclosure laws in the near future. Companies should prepare by implementing clear pay structures, ensuring transparency in job postings, and addressing internal wage gaps.
Suggested Read: To learn about pay transparency laws in California, click here. For a detailed guide on pay transparency laws across all states, refer to this guide.
The next section explains important dates employers should be aware of to remain compliant with pay transparency laws.
Massachusetts has been a leader in advancing pay transparency laws, ensuring that employers provide clear and fair compensation details. To stay compliant, businesses must understand when these laws took effect and what is required of them.
Employers with 100 or more employees in Massachusetts are required to submit their EEO-1 reports to the Massachusetts Secretary of the Commonwealth by February 1. These reports need to contain demographic and pay data categorized by race, ethnicity, sex, and job type. The state will use this information to create and publish anonymized aggregate wage reports.
Salary range disclosure requirements take effect on October 29, 2025. Employers with 25 or more employees in Massachusetts must include salary ranges in all job postings, promotions, and internal transfers. This applies whether the job is advertised directly by the employer or through third-party recruiters.
With these transparency laws in place, companies must examine their pay structures more closely to remain compliant. In the next section, we will explore the Massachusetts Equal Pay Act (MEPA) and how it further strengthens wage equity across the state.
The Massachusetts Equal Pay Act (MEPA) is one of the strongest wage equity laws in the country, ensuring that employees receive equal pay for comparable work—regardless of gender. Unlike federal equal pay laws, MEPA goes further by broadly defining “comparable work” and holding employers accountable for pay disparities.
For HR teams and business leaders, compliance with MEPA is not just a legal requirement—it’s a critical step toward fostering workplace fairness, reducing bias, and preventing costly lawsuits.
The Massachusetts Equal Pay Act prohibits employers from paying different wages to employees of different genders for comparable work. The law defines comparable work based on skill, effort, responsibility, and working conditions—regardless of job title.
Key employer obligations under MEPA include:
MEPA also makes it illegal for employers to retaliate against employees who discuss wages or question pay disparities.
Non-compliance with MEPA can lead to severe legal and financial consequences. Companies found guilty of wage discrimination may be required to pay affected employees mandatory back pay, additional damages, and legal fees.
To mitigate these risks, Massachusetts encourages self-audits. If an employer proactively conducts a pay equity audit and corrects disparities, they may gain legal protection against certain claims.
With MEPA in full effect, HR teams and business leaders must stay ahead of compliance requirements. Next, we will explore who these laws apply to and how different industries are impacted.
Suggested Read: Wage equity laws in Massachusetts aim to address pay disparities. Explore the gender pay gap and pay disparity in the U.S. here.
Massachusetts’ Pay Transparency Law and the Massachusetts Equal Pay Act (MEPA) impact businesses across industries, requiring them to adopt fair compensation practices and salary transparency. These laws apply to companies of all sizes—whether they are small startups or large corporations—and directly affect how they hire, promote, and set salaries.
Both laws apply broadly across industries and company sizes. Unlike some labor laws that only affect large corporations, these regulations cover any business operating in Massachusetts, regardless of industry.
The industries most affected include technology, healthcare, retail, finance, and hospitality, where pay gaps and inconsistent salary practices have historically been issues. Even companies headquartered outside of Massachusetts must comply if they employ remote workers based in the state.
The impact of these laws varies based on company size and structure:
Regardless of company size, compliance requires a structured and well-documented compensation policy. Employers must ensure transparency in hiring, promotions, and salary negotiations to avoid penalties.
Suggested Read: Massachusetts' pay transparency law emphasizes fair compensation practices. Understand the steps and importance of pay equity analysis here.
Employers can no longer adjust salary offers based on a candidate’s past earnings. Instead, compensation decisions must be based on skills, experience, and job market benchmarks. This change prevents the continuation of past wage disparities and ensures fair starting salaries.
Employers must disclose salary ranges upfront for promotions and internal transfers, ensuring employees are fully informed when considering career growth opportunities. Any pay differences must be justified based on legitimate business factors, such as seniority, performance, or geographic location.
Under these laws, salary negotiations will also be different. Candidates will enter discussions with a clear understanding of the salary range, reducing discrepancies caused by negotiation tactics. Employers must ensure that pay structures are data-driven and consistently applied across roles.
These laws are reshaping workplace compensation policies, so businesses must audit their salary structures, train HR teams on compliance, and develop clear policies to meet state requirements. To stay ahead of these changes, businesses should:
As Massachusetts enforces stricter pay transparency and wage equity rules, companies must adopt proactive strategies to ensure compliance and maintain employee trust.
Suggested Read: Pay transparency laws in Massachusetts require structured compensation frameworks. Learn how to build pay bands using market reference points and benchmark data here.
In the next section, we will discuss the penalties for non-compliance and the risks businesses face if they fail to meet these legal requirements.
Failing to comply with Massachusetts' Pay Transparency Law and the Massachusetts Equal Pay Act (MEPA) can lead to financial penalties, legal disputes, and reputational damage. Employers who ignore these regulations risk facing state enforcement actions, employee lawsuits, and increased public scrutiny over wage practices.
Massachusetts has strict enforcement mechanisms to ensure employers follow pay transparency and wage equity laws. Because penalties increase with repeated violations, it is essential for businesses to proactively update their compensation policies.
Employers who fail to disclose salary ranges in job postings or submit required pay data reports may receive a warning for a first violation. However, repeated offenses can result in monetary fines, as per M.G.L. c. 149, section 27(c).
Under MEPA, employees who believe they are being paid unfairly for comparable work can file a claim against their employer. Unlike other labor laws, MEPA does not require employees to prove intentional wage discrimination. Companies found guilty of wage inequities may be required to pay back wages, damages, and legal fees.
Massachusetts requires large employers (100+ employees) to submit pay data reports starting February 1, 2025. The state will use this information to publish anonymized, aggregate wage reports, which could expose pay gaps within certain industries or companies. Employers with significant wage disparities may come under government scrutiny or public criticism.
With salary transparency now a key factor for job seekers, companies that fail to disclose salary ranges or comply with pay equity laws risk losing top talent. A reputation for unfair compensation practices can harm employer branding, increase turnover, and create workplace morale issues.
To minimize legal and financial risks, employers should take proactive steps to ensure compliance with Massachusetts’ pay transparency and equal pay laws.
Massachusetts is committed to holding employers accountable for fair pay practices. Companies that ignore these regulations encounter consequences beyond fines; they jeopardize employee trust, invite legal disputes, and damage their reputation in a competitive job market.
Suggested Read: Ensuring compliance with Massachusetts' pay transparency law starts with understanding wage equity. Learn how to conduct a pay equity analysis and calculate the gender pay gap here.
In the next section, we will discuss the steps for compliance and how HR teams can effectively implement fair pay policies.
With Massachusetts enforcing strict pay transparency and wage equity laws, HR teams and business leaders must take proactive steps to ensure compliance. Businesses must proactively develop fair pay policies to ensure compliance and workplace equity. Implementing structured compensation frameworks not only reduces legal risks but also enhances employee trust, retention, and engagement.
The following steps outline how HR teams and business leaders can create transparent, data-driven, and legally compliant pay policies.
Employers with 25 or more employees must start listing salary ranges in all job postings, promotions, and internal transfers by October 29, 2025. To stay compliant, companies should:
Employers must analyze salary structures across their workforce to identify and address wage disparities before legal action arises. MEPA mandates equal pay for comparable work, meaning companies should:
Suggested Read: A strong compensation philosophy aligns with pay transparency and wage equity laws. Explore examples and frameworks here.
Employers must ensure that hiring managers, recruiters, and HR personnel are fully informed about pay disclosure requirements and wage equity laws. A robust training program should:
Many businesses rely on external staffing agencies and recruiters to manage hiring, but employers remain legally responsible for job postings and compensation discussions. To prevent compliance violations:
Companies with 100 or more employees must submit demographic and wage data to the state starting February 1, 2025. To ensure accurate and timely reporting:
Beyond legal compliance, employers should focus on embedding pay transparency into their corporate culture. Transparent pay policies enhance employee trust, improve retention, and strengthen employer branding.
With tools like CompUp, companies can automate compliance, conduct real-time pay equity audits, and establish a transparent salary structure. The next section discusses these in detail.
As Massachusetts enforces stricter pay transparency and wage equity laws, businesses must adopt structured compensation strategies to remain compliant and competitive. Managing salary disclosures, pay equity audits, and legal reporting can be complex—this is where CompUp simplifies the process.
CompUp is a comprehensive compensation management platform designed to help HR teams, business leaders, and hiring managers streamline pay decisions, ensure compliance, and create equitable salary structures.
These are a few ways it can help you ensure compliance:
Suggested Read: Pay transparency is just one piece of the puzzle. Explore the concept of total rewards in HR and how it shapes employee compensation here.
With Massachusetts increasing enforcement of pay transparency and wage equity laws, businesses need a reliable solution to manage compliance effortlessly. CompUp provides HR teams with the tools they need to establish pay fairness, reduce legal risks, and strengthen employer trust.
CompUp offers a streamlined approach to compensation management for organizations preparing for October 29, 2025, and beyond. The tool has helped several businesses stay ahead of evolving regulations while creating an equitable, data-driven pay structure.
Massachusetts is setting a new standard for fair pay and salary transparency, requiring businesses to take proactive steps to ensure compliance. The Frances Perkins Workplace Equity Act introduces mandatory salary disclosures and pay equity reporting, so companies must rethink their compensation strategies to meet these evolving regulations.
CompUp is a powerful compensation management platform that simplifies companies' compliance. It streamlines salary benchmarking, pay equity audits, and legal reporting. With CompUp, businesses can maintain fair pay, comply with state transparency laws, and make informed compensation decisions without the extra paperwork.
Use data, not guesswork, to ensure fair pay. Try CompUp now. Schedule your demo today.
How are salary ranges determined under the new law?
Employers must set reasonable salary ranges based on factors such as market rates, industry standards, internal compensation structures, and job responsibilities. The posted range should reflect what the employer genuinely expects to pay for the role, not an arbitrary or misleading number.
Can an employer adjust a salary range after posting a job?
Employers can revise salary ranges if market conditions change, but they must ensure that the updated range is still reasonable and consistent with pay transparency rules. Drastically altering salary ranges to manipulate hiring negotiations could be seen as non-compliant.
Does MEPA apply only to gender-based wage discrimination?
No. While MEPA was originally focused on closing the gender pay gap, it prohibits wage discrimination against employees performing comparable work, regardless of race, ethnicity, or other protected characteristics. Employers must ensure that pay differences are based on legitimate factors such as seniority, performance, or geographic location.
Are there any exemptions for small businesses under these laws?
Yes and no. While companies with fewer than 25 employees are not required to include salary ranges in job postings, they must still comply with MEPA’s pay equity requirements. Smaller businesses should proactively review their pay structures to avoid legal risks.
Co-founder & CEO, CompUp
Anurag Dixit, founder of CompUp, is a seasoned expert in all things compensation and total rewards. With a deep understanding of the current compensation trends, his vision is to help companies create fair, transparent, and effective compensation strategies.
Revolutionizing Pay Strategies: Don't Miss Our Latest Blogs on Compensation Benchmarking
