The Pay State: Massachusetts Set to Join Hawaii, Illinois in Adopting Pay Transparency Requirements this Year

Pay transparency laws remain a hot trend across the United States with more and more states taking up legislation requiring employers to disclose salary ranges in job postings. However, nowhere is that trend hotter than in Massachusetts, where in little under a month’s time pay transparency legislation has sailed through the legislature.

Earlier this month, the state legislature introduced a pair of bills (now consolidated) that require employers with 25 or more employees to disclose salary ranges in job postings. The legislation moved rapidly through both chambers and is expected to be passed and signed into law by Gov. Maura Healey in the coming weeks. However, it won't be effective until approximately one year after it is signed. 

Assuming it will be adopted, Massachusetts will join Hawaii and Illinois in adopting such legislation in 2023. Likewise, California, New York, and Washington's own pay transparency laws went into effect this year, having been adopted in 2022. 

Massachusetts' pay transparency bill is similar to the laws in other states, except for a few key differences. For example, the Massachusetts bill does not require employers to disclose employee benefits in job postings. It also does not create a private right of action for applicants to sue over violations. Instead, employers would be subject to a series of increasing fines for each violation, as enforced by the state's Attorney General.

While the legislation is limited to Massachusetts, these almost-overnight legislative efforts serve as a good reminder for employers to stay on top of this rapidly changing landscape. Many other states currently have pay transparency legislation pending, including Maine, Michigan, and New Jersey. Many other states saw legislation introduced in 2023 – for example, Connecticut, Kentucky, and Oregon all considered such legislation. 

However, given the trends of the last couple of years, it can be expected that many of these same states (and almost certainly a few more) will join this trend as new legislative sessions kick off across the country in the coming months.

As these new laws roll out across the country, employers should be ready to review their job postings; update their internal policies and procedures; and train their hiring and recruiting teams to ensure compliance with these new laws and obligations.