State Clarifies 2025 Pay Transparency Reporting Requirement as Deadline Approaches
News January 8, 2025
Last year’s new pay transparency law consists of two distinct obligations for employers: annual workforce data submissions and the requirement that employers establish and provide pay ranges for positions. The data submission section of the law requires employers of 100 or more employees in Massachusetts to submit their workforce’s demographic and wage data to the state annually by February 1st. The state will then aggregate and publish the data.
The new law closely follows the federal requirement that employers of 100 or more submit an annual EEO-1 report so as not to add an administrative burden on employers. While the state has not yet established the specifics of the reporting and collection of data, it requires only the information that employers are already required to provide in the EEO-1 report.
As the 2025 reporting deadline draws near, employers are reminded that they are not required to complete their 2025 EEO-1 report by the February 1st deadline. Instead, they will submit the most recently filed EEO-1 report, that filed for 2024, which reflects data from 2023.
Employers are not required to supplement the 2024 EEO-1 report that is submitted to the state with compensation data. This requirement, known as Component 2, has not been required on the federal EEO-1 report since 2019. Compensation data will only be required on the state report if it is required on the federal EEO-1 report.
We have been told by the Executive Office of Labor and Workforce Development that additional information about compliance with the new reporting requirement, including an FAQ page, is forthcoming. Employers can expect more precise instruction in the coming days on how and where to submit their reports.
Just a reminder that the pay range aspect of the new law does not take effect until October 29, 2025.
Need more help?
Any AIM member interested in discussing this or any other HR related matter may call the AIM helpline at 1-800-470-6277.
For more customized support, navigating pay transparency requirements, AIM HR Solutions is here to help. From understanding compliance to implementing effective pay practices, our experts provide tailored support to meet your needs. Visit www.AIMHRSolutions.com or email us at hrinfo@aimhrsolutions.com to learn more.