The new law, the “Act to Establish Pay Equity,” was signed by Governor Charlie Baker on August 1, 2016. It replaces Massachusetts’ existing pay equity law, M.G.L. ch. 149 § 150A, in an effort to eliminate the gender pay gap by broadening the meaning of “comparable work” and implementing new rules on employees’ salaries. The new act also creates an affirmative defense for employers who conduct a self-evaluation of their pay practices. The law will not take effect until July 1, 2018, giving employers time to evaluate their policies.
Employment Law For Individuals | Pay Inequality
Pay or compensation discrimination occurs when employees performing similar work do not receive similar remuneration. Pay discrimination also occurs when a pay differential has an illegitimate basis such as race or sex. Pay discrimination based on an employee's membership in a protected category like race, disability, or sex, is prohibited by antidiscrimination laws. Unfortunately, the data throughout the country shows that pay inequality exists across a broad range of industries and occupations. A variety of statutes exist at the state and federal level to prevent and remedy pay inequality.