The Massachusetts Legislature last week passed a compromise wage-equity and transparency bill that will make Massachusetts more competitive in the battle for talent without imposing unnecessarily punitive and burdensome measures against employers.

The bill approved would require businesses with 25 employees or more to disclose salary ranges in job postings and protect an employee’s right to ask for salary ranges in the workplace. Employers with 100 or more employees would also have to report wage data to the Executive Office of Labor and Workforce Development. The state would then publish aggregate data reports on its website while protecting the identity of employers.

The measure must be signed by Governor Maura Healey before becoming law.

AIM led the business community in drafting the original legislation and helped to negotiate this compromise over several months with the Wage Equity Now coalition and with the co-chairs of the Legislature’s Joint Committee on Labor and Workforce Development as well as  House and Senate leadership and members of the conference committee. Protecting employer identities was key to making the bill agreeable to both advocates and AIM.

Without AIM at the table representing the interests of the business community, an alternative version of the bill that would have subjected employers to public exposure and possible private litigation for compensation inconsistencies could have moved forward. The compromise bill prevents that from happening.

More importantly, AIM’s involvement in the negotiations reflects the organization’s belief that this bill will help Massachusetts employers compete to attract the talent they need to grow their businesses. The bill sends a clear message that Massachusetts is committed to leading the way on pay equity and, in turn, attracting and retaining a workforce that will allow our businesses and economy to thrive.

WBUR Radio Boston: Brooke Thomson discusses wage equity, transparency

Boston Globe: AIM CEO Comments on Wage Equity Compromise

AIM HR Solutions: Pay Transparency Update

Massachusetts in recent years has seen an exodus of employees who have moved to other areas of the country. Massachusetts must be able to say to those workers: “This is why you want to come here and work for a Massachusetts employer.” The commonwealth must also be able to say to employers: “This is why you want to grow your business in Massachusetts.” This bill is yet another step in the right direction.

Several law makers noted AIM’s work on the bill.

“I want to emphasize how today we are actually taking an important step toward ensuring that women have equal pay for the equal work that we are doing. This bill quite honestly is economic commonsense, which is why it’s been supported by AIM,” said Rep. Brandy Rep. Fluker Oakley  of Boston.

Senator Paul Feeney of Foxborough said that AIM “has been an incredible ally as we work to get the language right on this.”

Stephanie Swanson, Executive Vice President of Government Affairs at AIM, said, “We applaud the members of the conference committee and the leaders of both the House and Senate for working with AIM and other stakeholders to enact meaningful reforms that help close the wage gap.”

Brooke Thomson, President and Chief Executive Officer of AIM, added:

“AIM worked with advocates to develop a compromise version of this bill because we view it as both a competitiveness issue and an equity issue. The Commonwealth needs full and diverse participation in the workforce. This bill will promote transparency and, in turn, tackle gender and other inequities in wages.

“AIM believes these important policy changes strike the right balance by promoting open and honest communication about wages while not overburdening our employers with cumbersome and time-consuming reporting requirements. Thanks to the Legislature, Massachusetts can lead on pay equity to compete and win.”