Two bills that are making their way through the legislature could affect many Massachusetts employers.  Both bills are intended to improve the Pay Equity Act passed in 2018, which was enacted to close the gender wage gap.

The Pay Equity Act, which prohibited gender-based differences in pay for comparable work, included a provision making it unlawful for an employer to ask an applicant or employee about salary history.  The goal was to prevent employees from being held at lower rates of pay as they moved to new jobs.

The two current pieces of legislation would provide applicants, employees, and the public with more information about pay rates.

The first of the pending bills (H.1849) requires employers of 15 or more employees to disclose the pay range for an open position in any job advertisement or posting.  Pay range is defined in the bill as “the annual salary range or hourly wage range or other compensation that the employer reasonably and in good faith expects to pay for such position at that time.”

The law would require that this information be made available to employees offered a promotion or transfer to a new position, and upon request to a current employee seeking the pay range for the position that she or he holds.

At least 14 other states as well as some local jurisdictions, notably New York City, require pay ranges for job advertisements.  The Massachusetts law will not give individuals a private right of action for violations. It will, rather, be enforced by the attorney general.  Massachusetts employers can prepare for this change by determining the pay range for all positions, regardless of whether they are currently open.

The second bill (S.1181) covers employers of 100 or more employees. The law would require covered employers to submit their federally required Equal Employment Opportunity Commission (EEOC) data on gender, race/ethnicity, and job categories to the state Executive Office of Labor and Workforce and the Secretary of State. This information would be combined at the state level to provide aggregate reporting of wage gaps within business sectors.

The pay-data reporting requirement would go into effect in 2024 for private employers, and for public employers in 2025.

The AIM Government Affairs team is following these bills and has worked closely with the Legislature to minimize the burden on employers. AIM staff anticipates that there will be opportunities to negotiate changes to the proposed legislation.  The Government Affairs team will prioritize reducing liability for members and reducing the burden on small businesses.

AIM members may call the AIM HR Helpline at 800-470-6277 with questions on pay equity and transparency or any other human-resources matter.