On July 31, 2024, Governor Maura Healey signed into law the Frances Perkins Workplace Equity Act (the “WEA”), a significant piece of legislation aimed at addressing gender and racial pay disparities in Massachusetts. The enactment of this new law reflects a national trend of other states mandating pay transparency requirements.
Key Provisions
The legislature originally intended for the new wage equity law to go into effect on July 31, 2025, but the effective date was subsequently clarified to begin on October 29, 2025 (due to a constitutional technicality). The WEA requires that both public and private employers with 25 or more employees disclose pay ranges in all job postings. This means that employees and job applicants will have clearer information about expected salaries, helping to combat pay discrimination and empowering them to make informed career decisions. The requirement extends to advertisements and postings by third parties, ensuring transparency across the hiring process.
The WEA also requires that employees who are promoted or transferred to positions with different responsibilities must receive pay range information from their employers. Additionally, current employees and applicants can request the pay range for the position they currently hold or for which they are applying.
The term “pay range” is defined as the annual salary range or hourly wage range that an employer reasonably expects to pay for a position. However, it’s important to note that employers are not required to disclose details about additional compensation paid, such as bonuses, commissions, benefits, stock options, or additional forms of incentive or equity compensation.
Reporting Requirements for Employers
The WEA also contains a pay data reporting requirement that is designed to help achieve wage equity. Effective February 1, 2025, Massachusetts employers with 100 or more employees and who are subject to federal wage data reporting requirements (such as an Equal Employment Opportunity Commission (EEO-1) Report) must submit their federal report to Massachusetts as well. This report contains important information about pay and workplace demographics. Private employers must submit their EEO-1 reports to the Commonwealth starting in February 2025 and annually after that. The reporting requirements for unions, public school systems, and state and local governments are less frequent (every two years).
Massachusetts intends to compile and anonymize the wage data that it collects and make it publicly available. This will be an important source of pay information for employees to consider in the future.
Key Information is a Game-Changer for Employees
Once it is fully in effect, the WEA will ensure that employees have access to vital wage equity pay information that they have not previously known or been able to consider when making decisions about potential job moves. This pay data will help employees and applicants make better-informed decisions. Applicants will be able to consider the pay ranges for jobs that they are seeking and filter out jobs that pay less. This disclosure requirement will also likely be used by employers to see how their pay range for particular positions compares with other companies. This pay data reporting could mean the end of the dreaded interview question “how much are you looking to earn?,” which has historically been a risky question to answer because applicants had no idea about pay ranges and worried about asking for too little or too much. This pay range reporting can also help current employees see where they fall in a reported pay range for their position and engage with their employer about why they are not earning more.
Protections for Employees
Employees are protected from retaliation or discrimination when exercising their rights under the WEA, including filing complaints, initiating legal proceedings, or testifying about violations. This means that if employees raise concerns about pay equity or related issues, they can do so without fear of negative repercussions. Enforcement of these provisions falls exclusively under the Massachusetts Attorney General’s (“AG”) Office.
Non-compliance by employers may result in penalties ranging from warnings for initial violations to fines levied by the AG’s office of up to $25,000 for repeated infractions. While the WEA clearly vests “exclusive” enforcement authority with the AG’s office, the statute explicitly limits that authority to reporting and disclosure obligations. It is worth noting that it may still be possible for employees to sue employers in court for claims of discrimination or retaliation because the anti-retaliation and anti-discrimination sections of the law are explicitly excluded from the AG’s “exclusive” enforcement authority. Despite these two protections being carved out from the AG’s exclusive enforcement authority, the statutes does not discuss an employee’s private right or ability to sue in court. Unlike other wage-related statutes in Massachusetts that clearly delineate a private right to sue, the WEA is silent about the recovery damages, attorneys’ fees, or potential multiplied damages. This issue may be clarified further as the roll-out of this law continues, guidance is issued by the AG’s office, and through litigation efforts in the courts.
Preparing for Change
Massachusetts employers should start preparing now to meet the WEA’s wage equity requirements. This includes gathering salary range data for all positions, reviewing and updating job postings to reflect pay ranges, and establishing procedures for disclosing this information to employees and applicants upon request. Additionally, employers should ensure they meet EEO data reporting requirements well before the deadlines. Employers may also consider conducting a comprehensive pay equity audit to identify and correct any potential pay disparities. Employers also need to ensure that their HR teams understand the new requirements and how to respond to inquiries about pay.
Seek Legal Advice Early
As the WEA takes effect, both employers and employees must navigate the new requirements for pay transparency and protections against retaliation. Understanding the complexities of workplace law is essential for both parties and seeking legal advice early can make a significant difference.
For employees, reaching out to an attorney when you sense something amiss in your workplace can help you understand your rights and navigate potential issues related to pay equity or retaliation. Don’t wait until a serious issue arises; seeking help early can empower you to take informed action and avoid mistakes that weaken your position.
For employers, proactive compliance with the new legislation is crucial to avoid penalties and foster a fair workplace environment. Consulting with an attorney can provide guidance on implementing the necessary changes in your pay practices, job postings, and reporting obligations. It’s essential to ensure that your business adheres to the law while maintaining a positive work culture.
If you have questions about how the WEA affects your specific situation—whether as an employer or an employee—schedule a consultation with us.