Key Takeaways

• Employers with at least 25 employees in Massachusetts must disclose the “pay range” for a position in all job postings.
• The “pay range” is the annual salary or hourly wage range the employer “reasonably and in good faith expects to pay” for the position at that time.
• This information must also be provided to employees offered a transfer or promotion, and to an employee in or applicant for a particular position upon request. 
• Covered employers who have not done so already should conduct a compensation review to determine a reasonable pay range for all positions.

As we reported earlier this year, Massachusetts enacted a new pay transparency law, which went into effect on October 29, 2025. The law affects not just information that must be included in job postings, but how employers respond to employee requests for compensation information.

Pay Transparency Law Went Into Effect October 29, 2025

Employers with 25 or more employees in Massachusetts must now disclose the pay range in job postings (including jobs that can be performed remotely if tied to a Massachusetts worksite), and to all employees or prospective employees applying for a position, promotion, or job transfer. The requirement also applies if the employer uses an outside recruiter – in that case, the employer must give the recruiter the pay range for the position, to include in the job posting. 

Employees also have a right to this information for their current position upon request.  

How and When Do Employers Calculate Employee Headcount?

In Frequently Asked Questions, the Massachusetts Office of the Attorney General (AGO) clarified that employee headcount should be calculated once a year by averaging the number of employees on its payroll that year, divided by the number of payroll periods.  All Massachusetts employees – including full-time, part-time, and temporary employees – must be included for this purpose.

Out-of-state/remote employees are included if their “primary place of work” is Massachusetts. To determine an employee’s “primary place of work,” the AGO will borrow from its interpretation of the Earned Sick Time and accompanying regulations, to determine where an employee performs the majority of their work.  

What is the “Pay Range”?

The law defines the pay range as the annual salary or hourly wage range the employer “reasonably and in good faith expects to pay” for the position at that time. Therefore, employers must avoid using overly broad salary ranges for a position, which could be viewed as an attempt to avoid the law’s requirements.

Although the statute makes no mention of commissions, in the FAQs, the AGO stated that if a position’s salary or hourly wage is “based on” a piece rate or commission, the expected piece rate or commission range for the position must be provided. It is not clear if this covers a position for which an employee receives a regular salary and is also eligible for a commission or if this covers “commissions-only” positions.  In an abundance of caution, we recommend including the piece rate and commission range in the job posting even if the employee is also receiving an hourly or base salary.

Reporting Requirements

Employers with 100 or more employees in Massachusetts, who are required to submit an annual equal employment opportunity (“EEO”) report to the federal Equal Employment Opportunity Commission (“EEOC”), must also submit those reports to the Secretary of the Commonwealth.  For the first year of the law becoming effective, an employer will have two business days to cure a defect in reporting, upon receiving written notice of such defects from the AGO.

Protection Against Retaliation

Employers are prohibited from retaliating against employees who seek to exercise their rights under the new law.

Penalties

Failure to comply with the pay transparency requirement will result in a warning for the first offense, and fines for repeated offenses. However, until October 29, 2027, an employer found in violation of the law will have two business days to cure defects upon receiving written notice of such violation from the AGO.

Pay transparency is intended to create a more equitable hiring process by ensuring candidates have information about compensation at the outset. By reducing information gaps, the law aims to close the gender and racial wage disparities in the workplace. 

Although Massachusetts has now joined the growing number of states enacting pay transparency laws, requirements vary across jurisdictions. Employers with multistate operations should be mindful of differing obligations and ensure compliance with each applicable state or local law.  

Employers should also keep a record of salary ranges – and the process by which those ranges were determined – in the event of a challenge, and train HR personnel and managers to ensure compliance with the law. 

Questions

If you have any questions, please contact a member of Casner & Edwards’ Employment Law practice.