Massachusetts Pay Reporting & Pay Transparency
Signed on July 31, 2024, by the Governor of Massachusetts, employers will soon be required to adhere to pay reporting and pay transparency requirements under the Salary Range Transparency Law. Reach out to DCI for assistance before the annual wage data report is due on February 1, 2025.
Massachusetts Wage Data Report Due
Pay Reporting
Who must submit?
Organizations with 100 or more employees in Massachusetts who are subject to federal filing requirements of a wage data report are covered under the law. This law also states that it covers employees based outside of Massachusetts.
What must be submitted?
Employers are to submit:
- The EEO-1 report, which covers private-sector employers
- The EEO-3 report, which covers unions
- The EEO-4 report, which covers state and local units of government
- The EEO-5 report, which covers elementary and secondary schools
Reports are to be submitted annually to the state by February 1st. Since organizations are submitting the “wage data report” associated with EEO reporting and there is currently no wage data reporting included in EEO-1 reports, pay reporting data will not be submitted by EEO-1 filers in 2025.
What are the next steps?
- EEO-1 reports must be submitted by February 1, beginning in 2025 (even if pay data component is not included). Learn more about how DCI supports many employers with their EEO-1s each year.
- Continue to monitor any changes to Massachusetts pay reporting legislation. Our interactive state legislation map is frequently updated with the latest legislation and regulations in pay transparency and pay reporting.
For more information, read DCI's blog on Massachusetts Pay Reporting.
Pay Transparency
Who is covered?
All employers with 25 or more employees in Massachusetts must include a pay range in job advertisements or job postings.
What must be posted?
Employers must list a pay range in postings, which is broadly defined as “the annual salary or hourly wage range that an employer reasonably and in good faith expects to pay for a position.” Massachusetts law differs from other states in that it only requires the range and not information on other forms of pay or a description of benefits offered.
What are the next steps?
- Evaluate roles to ensure they have an accurate description and salary range.
- Verify that your salary ranges can withstand public scrutiny by updating or designing a compensation structure that matches internal and external benchmarks.
Visit our Compensation Consulting page to explore how DCI helps organizations adhere to state pay transparency regulations while building a sound compensation plan. For more information on enforcement and specifics of the law, read DCI’s latest blog.
