A new pay transparency law is now in effect in Massachusetts, and it affects both how employers share compensation information and how employees and job seekers access it.
As of October 29, 2025, many Massachusetts employers are required to disclose pay ranges in job postings and to provide pay range information to employees and applicants who request it. For employees, this law is intended to increase transparency around compensation and help promote fairness in the workplace. For employers, it introduces new compliance requirements that impact job postings, internal pay practices, and communication around pay.
If you work for a business with 25 or more employees, or if you are applying for a job with a Massachusetts employer of that size, this law likely applies to you.
Understanding what the law requires, what rights employees now have, and what obligations employers must meet is important for everyone involved. Below, our Massachusetts employment law attorneys explain who the law applies to, what compliance looks like, and the potential consequences of getting it wrong.
Does the Massachusetts Pay Transparency Law Apply to Me?
The Massachusetts Pay Transparency Law applies to employers that meet the definition of a “covered” employer.
In general, any employer in Massachusetts with 25 or more employees, including the business owner, is considered covered and must comply with the law. That said, some employers are unsure whether they meet this threshold due to factors such as part-time or seasonal employees, recent growth or downsizing, or changes in workforce structure.
Before taking steps to determine compliance, employers should consider speaking with an employment lawyer to confirm whether they are covered under the law. There are significant consequences for covered employers that are found to be in violation.
Penalties for Violating the Massachusetts Pay Transparency Law
The penalties for failing to comply with the Massachusetts Pay Transparency Law can be substantial and increase with each violation.
- For a first offense, an employer will receive a warning.
- For a second offense, an employer may receive a monetary fine of up to $500.
- For a third offense, an employer may receive a monetary fine of up to $1,000.
- For a fourth or subsequent offense, penalties become significantly more severe, including multiple thousands of dollars and potentially up to $25,000 under MGL 27C(b)(1) and MGL 27C(b)(2).
How to Comply With the Pay Transparency Law
If your business is a covered employer, you must comply with the portions of the law that took effect in October 2025. Some employers may also be subject to earlier provisions that became effective in February 2025, depending on company size.
Requirements for Employers With 25 or More Employees
To comply with the Pay Transparency Law provisions currently in effect, covered employers must ensure the following:
- Pay ranges must be included in all job postings
A “pay range” means the annual salary range or hourly wage range that the employer reasonably and in good faith expects to pay for the position at the time of posting. - Pay range information must be provided upon request
Employers must disclose pay ranges to job applicants or existing employees who request the information. Requests may be made:- When applying for a job
- When seeking a promotion, transfer, or new position
- When requesting pay range information for a current position
- No retaliation is permitted
Employers may not retaliate against any employee or job applicant who requests pay range information as permitted under the law.
Additional Requirements for Employers With 100 or More Employees
Employers with 100 or more employees must also submit wage data and demographic reports to the Secretary of the Commonwealth, in addition to meeting the disclosure requirements outlined above.
Are You in Compliance With the Massachusetts Pay Transparency Law?
The final portions of the Massachusetts Pay Transparency Law are now in effect, and all employers with 25 or more employees are required to comply.
The best way to ensure that your business is currently in compliance and remains compliant in the future is to seek guidance from an experienced Massachusetts employment law attorney. Legal counsel can help review job postings, internal pay practices, and response procedures for pay range requests to reduce the risk of violations.
If you have questions about pay transparency requirements or would like assistance evaluating your compliance, contact Rodman Employment Law today to learn how we can help.
