Why This Story Matters:
In July 2024, Massachusetts enacted a law called “An Act Relative to Salary Range Transparency” to increase equity and transparency in pay by requiring employers to disclose salary ranges and protecting an employee’s right to ask for salary ranges. Under the Act, covered employers must submit a wage data report with the Commonwealth by February 1, 2025.
Update 2/3/2025: Employers filing EEO-1 reports must complete their submission by February 1 annually, and if February 1 falls on a weekend or holiday, by the next business day. This year, this means reports will be due by Monday, February 3, 2025.
New Act Requires Massachusetts Employers to Submit Wage Data Reports to Commonwealth
On July 31, 2024, Massachusetts Governor Maura Healey signed into law “An Act Relative to Salary Range Transparency” (H.4890) to increase “equity and transparency in pay by requiring employers to disclose salary ranges and protecting an employee’s right to ask for salary ranges,” according to the press release “Governor Healey Signs Wage Equity Legislation.”
“I have long supported wage equity legislation and, as Attorney General, I was proud to work together with the business community to implement the 2016 Equal Pay Act,” Governor Healey stated in the press release about the Act. “This new law is an important next step toward closing wage gaps, especially for People of Color and women.”
Under the Act, employers with 100 or more Massachusetts-based employees during the prior calendar year must for the first time submit a copy of their most recent wage data report to the Commonwealth as well as the U.S. Equal Employment Opportunity Commission (EEOC), a federal agency that enforces federal laws prohibiting employment discrimination.
Filing Due Dates for Massachusetts Employers for Wage Data Reports Under the Act
The Act defines a “wage data report” as “an EEO-1, EEO-3, EEO-4, or EEO-5 data report.” These “EEO Data Reports” contain workforce demographic and pay data categorized by race, ethnicity, sex, and job category. The Act requires that covered employers file EEO data reports with the Massachusetts Secretary of State’s Office. Filing due dates for the reports are:
- EEO-1 Data Reports – Annually, not later than February 1st.
- EEO-3 Data Reports – Odd-numbered years, not later than February 1st.
- EEO-4 Data Reports – Even-numbered years, not later than February 1st.
- EEO-5 Data Reports – Odd-numbered years, not later than February 1st.
All EEO data reports must be uploaded using the link below, no later than February 1st, based on the timeframe above. Reports must be submitted in PDF, JPEG, or PNG formats. The file name must clearly identify the legal name of the filing entity and the type of report being uploaded. To upload a file, visit www.sec.state.ma.us/divisions/corporations/eeo-data-reports.htm.
Other Requirements for Massachusetts Employers Under the Act
The Act also contains numerous new requirements for Massachusetts employers. The Act requires public and private employers with 25 or more employees to disclose pay ranges in job postings, provide the pay range of a position to an employee offered a promotion or transfer, and provide the pay range to employees who already hold that position or applying.
The Massachusetts Attorney General’s Office will also be given enforcement authority and the ability to impose fines or civil citations for violations of this law, and employees will receive protection against retaliation for asking for salary ranges when applying for a job or promotion. The Attorney General’s Office will conduct a public awareness campaign on these new rules.
The Massachusetts Executive Office of Labor and Workforce Development has published Frequently Asked Questions (FAQs) about the Act to offer important information about employer obligations. The FAQs page also connects employers to a web page for the Secretary of the Commonwealth that provides instructions for filing and a link for uploading required reports.
What Are Pay or Salary Transparency Laws?
According to a blog from workforce management system provider Rippling, pay or salary transparency legislation “requires employers to disclose salary information to job candidates and current employees, making workplaces more transparent and equitable.” These laws typically cover a few key areas such as salary information and total compensation.
In 2018, California became the first state in the U.S. to adopt pay transparency legislation and now several other states have followed suit with pay transparency laws on the books. More and more states are considering and adopting their own pay transparency laws every year. A more detailed list of these states is available on the Rippling website.
ClearStar Helps Employers Comply With Background Screening Laws
ClearStar – a global workforce screening company specializing in background checks, drug testing, and occupational health services – is the only screening firm providing a real-time compliance solution. ClearStar’s Assured Compliance® program manages local, state, and federal notice, disclosure, consent, and adverse action requirements for job candidates.
- Real-Time Compliance: One size does not fit all. Disclosures, notices, and consents are presented to candidates in a fully automated solution as required by local, state, and federal (Fair Credit Reporting Act) laws.
- Dynamic Disclosures: Candidates are presented only with relevant disclosures based on where they live and will be working to minimize confusion.
- Adverse Action Management: ClearStar’s robust adverse action management module minimizes compliance challenges for employers and makes navigating complicated requirements a breeze, even in jurisdictions requiring additional steps.
- Updated as Laws Change: Compliance with local, state, and federal laws is a constantly changing landscape that can be challenging. ClearStar publishes a monthly compliance update and adapts our technology in response to regulatory and legislative changes.
- Strong and Clear Audit Trail: A transparent process is important. Candidates can access a copy of their specific notices, disclosures, and the consent they signed. This also creates a reliable audit trail for employers.
- ClearStar is Global: Our technology supports candidates who have lived or worked outside of the United States.
ClearStar has provided background screening solutions from its corporate offices in Alpharetta, Georgia, since 1995, and will celebrate the company’s 30th anniversary in 2025. ClearStar’s numerous certifications help ensure the privacy, security, and confidentiality of all consumer data used during the background screening process. To learn more, contact ClearStar.
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Thomas Ahearn - Digital Content Editor
Thomas Ahearn is a Digital Content Editor at ClearStar, a leading Human Resources technology company specializing in background checks, drug testing, and occupational health screening. He writes about a variety of topics in the background screening industry including Artificial Intelligence (AI), "Ban the Box," class action lawsuits, credit reports, criminal records, drug testing, Equal Employment Opportunity Commission (EEOC), Fair Credit Reporting Act (FCRA), identity theft, privacy, social media screening, and workplace violence.
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