Massachusetts Pay Transparency Law

What Employers Need to Know

Starting in 2025, Massachusetts employers will face new compliance obligations under the Frances Perkins Workplace Equity Act, also commonly referred to as the Massachusetts Pay Transparency Law. This landmark legislation is designed to promote fair pay practices and reduce wage disparities across the Commonwealth.

Whether your organization is just above the 25-employee threshold or well into the hundreds, it’s critical to understand how these rules apply to your business and what you need to do to stay compliant.

EEO-1 Reporting Requirement Began February 2025

As of February 2025, employers with 100 or more employees whose primary place of work is Massachusetts are required to submit workforce demographic data to the Commonwealth.

Who Must Report

  • Employers with 100 or more employees in Massachusetts (based on the average headcount across payroll periods in the prior calendar year)
  • Only employees whose primary place of work is in Massachusetts are counted

What Must Be Submitted

  • The most recent EEO-1 Report already filed with the EEOC
  • Employers are not required to modify the report, but may choose to submit a version that includes only Massachusetts employees

Submission Details

  • The first report was due February 3, 2025 (extended from February 1 due to the weekend)
  • This is now an annual requirement, with reports due every February 1
  • Reports must be submitted through the state’s online portal
    Submit Your EEO Report

Note: The state does not currently require wage data to be submitted.

Salary Range Transparency Requirements – Effective October 29, 2025

Beginning October 29, 2025, employers with 25 or more employees in Massachusetts must comply with new salary transparency rules.

What’s Required

Covered employers must:

  • Include a pay range in all job postings
  • Provide the pay range when offering a promotion or transfer
  • Share the pay range for an employee’s current role upon request

Definition of Pay Range

The annual salary or hourly wage range that the employer reasonably and in good faith expects to pay at the time of the posting. For commission or piece-rate positions, the expected range of earnings must be disclosed.

Scope

  • Applies to both in-person and remote jobs with a primary place of work in Massachusetts
  • Applies to postings made by third-party recruiters as well as by the employer directly

Penalties for Non-Compliance

Offense Penalty
First Offense Warning
Second Offense Fine of up to $500
Third Offense Fine of up to $1,000
Fourth+ Fine of up to $25,000 and further penalties under state law

 

Through July 31, 2027, employers will have two business days to correct violations upon receiving a Notice to Cure from the Attorney General’s Office.

Why This Law Matters

Pay transparency is a proven strategy for closing wage gaps, increasing workplace trust, and improving recruitment outcomes. Massachusetts’ new law reflects growing momentum across the country to make compensation practices more fair, equitable, and transparent.

Support for Massachusetts Employers

Navigating the Massachusetts Pay Transparency Law may require updates to your compensation practices, reporting processes, and internal communication. AIM HR Solutions offers scalable support to help you meet compliance requirements with confidence.

We offer guidance and services for:

  • Training your team to implement pay transparency independently
  • Conducting market analysis and developing compliant pay structures
  • Performing full pay equity reviews and creating strategic compensation plans
  • Reviewing job postings and internal pay communication practices
  • Reducing legal risk and aligning with best practices in fair pay

Learn more about our Pay Transparency Consulting Services or contact us to get started.

Other helpful links:

Contact Us!