Upcoming Massachusetts Pay Transparency Rules: What Employers Should Be Doing Now to Prepare

In October 2025, Massachusetts will enact a groundbreaking set of pay transparency rules aimed at creating a fairer and more equitable workplace across all sectors. These rules are a significant leap toward addressing pay inequalities and ensuring that employees receive fair compensation based on their work and qualifications rather than their negotiating skills or other factors unrelated to job performance. As an employer, understanding and preparing for these changes is crucial to ensure compliance and maintain a positive workplace environment.

Understanding the New Pay Transparency Rules

The new pay transparency rules require employers to disclose salary ranges for all job postings and provide current employees with their wage ranges upon request. Additionally, employers must maintain records of job descriptions and pay histories for all employees. The legislation is designed to minimize wage discrimination and close any wage gaps based on gender, race, or ethnicity, and promote a culture of openness regarding compensation.

Key components of the law include:

1. Salary Range Disclosure: Employers must include the salary range for each job posting, whether internal or external.  This range should represent the honest and realistic pay that employees can expect to receive, considering factors like experience level and qualifications. It’s important to note that this is different from some other state laws that only require salary information to be provided upon request. In Massachusetts, the information must be proactively included in the job posting itself.
2. 
   Current Employees’ Rights: Current employees have the right to know the pay range for their position or for any position for which they are applying within the company upon their request. This includes information about pay adjustments tied to promotions. Please note that this law is not instructing employers to share specific employees’ salary information with their peers.
3. 
   Record-Keeping Requirements: Employers are required to keep records of job descriptions and pay history for all employees for at least three years. These records will help with audits and any investigations concerning compliance.

Actions Employers Should Take Now

Preparation is key to ensuring that the transition to compliance with the new pay transparency rules goes smoothly. Here are several steps employers can take now:

1. Review and Adjust Compensation Structures: Employers should review their current compensation structures and practices to ensure compliance with all previous and upcoming pay equity laws. This process involves:

• Evaluating Existing Pay Scales: Ensure that all salary ranges are realistic, competitive, and reflect the duties and responsibilities of each job or job category.
• Conducting a Pay Equity Analysis: Compare compensation across employees to identify and correct any unjustified disparities.
• Updating Job Descriptions: Make sure all job descriptions are up to date, accurately reflect the role’s responsibilities, and correspond with the salary ranges listed.

2. Implement Robust Record-Keeping Systems: Employers should develop efficient systems for maintaining comprehensive records. This entails:

• Reliable and up -to-date data tracking using a recordkeeping system such as HR software that can store and organize employee records including job descriptions, pay histories, and salary adjustments or other recordkeeping systems that are consistently updated.
• Regular audits to ensure records are accurate and up-to-date, which will be crucial in demonstrating compliance.

3. Training for Management and HR Teams: Management and HR teams play a crucial role in the implementation of pay transparency policies. Employers should:

• Conduct Training Sessions on the specifics of the new regulations, how to communicate pay ranges, and the importance of transparency.
• Equip managers with strategies to discuss compensation openly and confidently with employees.
• Ensure that all management understands the legal implications and is committed to upholding the new rules.

4. Update Hiring Practices: For compliance with salary range disclosures in job postings, employers should:

• Standardize Job Listings: Make sure that all job listings include the necessary salary range information.
• Revise Job Posting Processes: Develop a standardized process for creating and reviewing job postings to ensure compliance.

6. Consider Engaging Legal and Compliance Expertise: Navigating the new regulations with precision may require expertise. Employers might consider:

• Consulting HR and/or legal experts (like Insource!) to ensure full compliance and to understand the nuances of the legislation as they apply to your specific workforce. These employment-focused professionals can also assist with larger scale projects such as developing a leveling structure with salary bands or benchmarking current bands with the market.
• Keeping abreast of any additional guidance or amendments to the rules from state authorities.

The pay transparency rules set to take effect in Massachusetts in October 2025 are a significant step toward ensuring fair compensation practices and closing wage gaps in the workforce. For employers, these new regulations necessitate substantial preparation, including revising compensation structures, implementing robust record-keeping systems, training management and HR teams, updating hiring practices, engaging with employees, consulting legal experts, and promoting a culture of fairness and compliance.

By taking these proactive steps, employers can ensure that they are not only compliant with the new laws but also contributing to a more equitable workplace. When done well, embracing pay transparency can build trust, improve employee satisfaction, and ultimately lead to a more productive and harmonious work environment. As the deadline approaches, the onus is on employers to transform their compensation practices, creating a legacy of fairness and equity that will benefit their organizations for years to come.

If you have questions or would like more information, reach out to us for personalized support and expertise.