A number of cities and states across the U.S. have enacted pay transparency laws. These statutes require employers to provide information about employee wage and salary ranges to potential applicants and current employees.
Pay transparency helps job applicants ensure that their offer is fair and within the designated range for their job within a particular company. It levels the playing field for negotiating starting salaries and decreases the likelihood of a low initial offer. Pay transparency laws are designed primarily to prevent racial and gender discrimination in pay practices.
More about the new law
Massachusetts’ new Wage Transparency Act became effective on October 29, 2025. The law requires all businesses that employ at least 25 people to include a job’s pay range in any posting or advertisement. Further, the new law requires employers to provide employees with the current salary range for their job “upon promotion, transfer or on request.” Under the statute, an employer must “share what it reasonably and in good faith expects to pay at the current time.” This language, while affording some discretion to the employer, is designed to prevent the practice, seen in other states without this limiting language, of employers posting unreasonably broad, and essentially meaningless, salary ranges. The Massachusetts law further provides protection against retaliation and imposes financial penalties on employers who fail to comply. .
Guidance for employers
According to the Mass.gov website, pay transparency also benefits employers and the economy in general. “Research has found that most workers are more likely to consider applying to a job, and trust the associated workplace, if the pay range is listed in the job posting. Beyond ensuring that workplaces in the Commonwealth are more equitable, the Pay Transparency Act will help strengthen the Massachusetts economy and its competitiveness by attracting and retaining the best talent.”
While the long term effects of the law remain to be seen here in Massachusetts, it is logical to conclude that pay transparency also will save employers time and expense in the recruiting of candidates, weeding out those seeking a higher salary range than the employer can offer.
The Massachusetts Attorney General has published guidance for employers on how to comply with the requirements of the new statute. Employers are well advised to consult that guidance or speak with an attorney to understand reporting requirements and penalties that can ensue for noncompliance.
