Guide to the Massachusetts Pay Transparency Law (Taking Effect October 29, 2025)

On July 31, 2024, Governor Maura Healey signed An Act Relative to Salary Range Transparency into law. Known as the Massachusetts Pay Transparency Law, this landmark legislation aims to strengthen pay equity and ensure fairer workplaces across the Commonwealth.

With its full provisions taking effect on October 29, 2025, Massachusetts employers should ensure their operations meet these new obligations around pay ranges, reporting requirements, and salary disclosures.

This article breaks down the law’s background, its core requirements, who qualifies as a covered employer, and the penalties for failing to comply.

Why Massachusetts passed the pay transparency law

The Massachusetts pay transparency law reflects growing national momentum toward pay equity. Research shows that requiring employers to disclose salary ranges closes racial and gender pay gaps while improving trust between employers and employees. Workers are more likely to apply to roles—and stay in them—when pay information is upfront.

The law serves two purposes:

• Protecting employees from discrimination based on race, ethnicity, sex, and job category

• Strengthening the Massachusetts labor market by attracting and retaining top talent through transparency

Key dates for employers

• July 31, 2024: Law signed by Governor Healey

• February 1, 2025: Employers with 100 or more employees must begin submitting EEO-1 and related demographic reports to the Secretary of the Commonwealth

• October 29, 2025: Employers with 25 or more employees must begin disclosing pay ranges in postings and to employees

Who is a covered employer?

The law distinguishes obligations based on employer size:

• 25 or more employees: Must disclose salary or wage ranges

• 100 or more employees: Must also submit annual EEO-1 reports (and in some cases EEO-3, EEO-4, or EEO-5 reports)

Importantly, headcount includes full-time, part-time, seasonal, and temporary employees. Remote workers are counted if their primary place of work is in Massachusetts, even if they live out of state.

Requirement 1: Pay range disclosure

As of October 29, 2025, all covered employers must require employers to disclose compensation information in three ways:

1. Job postings: Every posting must include the range that the covered employer reasonably and in good faith expects to pay for the position

2. Applicants: Prospective employees have the right to request the pay range for any position they apply to

3. Current employees: Workers may request the pay range for their own role, even if the position is not vacant

What counts as a pay range?

The law defines it as “the annual salary range or hourly wage range that the employer reasonably and in good faith expects to pay for such position at that time.”

If the role involves commission or other forms of compensation, the posting must state the range that the covered employer reasonably and in good faith expects to pay for the position.

Requirement 2: Workforce demographic reporting

Employers with 100 or more employees face additional reporting requirements. As of February 1, 2025, these companies must file their most recent EEO-1 reports with the Secretary of the Commonwealth, who will transmit them to the Executive Office of Labor and Workforce Development (EOLWD).

The EEO-1 report requires employers to submit demographic workforce data, breaking down employees by:

• Race

• Ethnicity

• Sex

• Job category

This does not create new reporting obligations. Employers already filing with the EEOC must now also submit to Massachusetts.

Enforcement and penalties

The Attorney General’s Office is charged with enforcing the Massachusetts pay transparency law. Penalties apply to both disclosure and reporting violations:

• First offense: Written warning

• Second offense: Fine of up to $500

• Third offense: Fine of up to $1,000

• Fourth or subsequent offenses: Higher penalties under state labor laws

Until October 29, 2027, employers will have two business days to cure defects after receiving a Notice to Cure.

Implications for Massachusetts employers

The new pay transparency law will change how businesses recruit, compensate, and manage compliance. Key impacts include:

• Hiring practices: Massachusetts employers will need to update all job descriptions with accurate pay ranges. This may require revisiting compensation strategies and standardizing salary bands.

• Internal transparency: Employees will now have the right to request ranges for their current roles. Companies must prepare to respond consistently and accurately.

• Data reporting: Employers with 100 or more employees will need systems in place to compile, review, and submit annual EEO-1 reports.

• Compliance risk: Noncompliance may result in escalating fines and scrutiny by the Attorney General and the Office of Labor and Workforce Development.

How to ensure compliance with Massachusetts’ new pay transparency laws

Covered employers should take the following steps to make sure their operations are compliant with Massachusetts’ new requirements:

1. Audit current pay practices to ensure ranges are accurate, defensible, and applied consistently across roles.

2. Develop templates for job postings that include legally compliant salary ranges and, if applicable, commission or other forms of compensation.

3. Train HR and hiring managers on responding to employee and applicant requests for pay ranges.

4. Implement tracking systems for compiling and submitting required EEO-1 reporting data.

5. Review anti-retaliation policies to ensure protections are in place for employees exercising their rights under the law.

How Deel can help employers navigate US compliance

The Massachusetts pay transparency law is just one example of how quickly US employment regulations are evolving. For employers managing a workforce across multiple states, keeping up with changing rules on pay equity, reporting requirements, and wage disclosures can be complex and resource-intensive.

That’s where Deel can help. Deel’s platform centralizes compliance for US payroll and HR, featuring:

• Fully in-house operations for improved support and workflows
• Expert payroll administration, HR, and benefits compliance
• Exclusive Aetna International benefits plans for W2 employees traveling abroad
• Built-in compliance for local and federal coverage
• 60+ domestic benefits plans with Fortune 500-caliber benefits
• Trainings, HR policies, and on-demand HR support
• And more

By partnering with Deel, Massachusetts employers—and those with teams across the US—can stay ahead of regulatory changes, protect their workforce, and ensure compliance without adding unnecessary complexity. Book a demo to learn more.