What employers need to do starting in October

A new Massachusetts pay transparency law that goes into effect this month will make it easier for job seekers.

Last year, Governor Maura Healey signed an act to increase both “equity and transparency” in pay in the state, according to the Massachusetts Attorney General’s office.

Starting Oct. 29, employers with 25 or more employees will be required to provide wage ranges in all job postings. They will also have to give them to applicants and current employees upon request.

The law was enacted to help close gender and racial wage gaps, the office said, as well as to strengthen trust between prospective employees and workplaces.

What employers will have to do starting Oct. 29

Once Oct. 29 rolls around, employers with 25 or more employees will have to disclose the annual salary range or hourly wage range for any job listing they post, according to state officials.

Current employees or applicants will have the right to know the pay range for a position when they apply for a new position, promotion, or transfer at one of these companies.

Employees will also be able to request to see the pay range for their current position, the state said.

This includes out-of-state employers who have at least 25 employees with a primary place of work in Massachusetts.

The law also requires employers with 100 or more Massachusetts employees who are subject to federal filing requirements to submit workforce demographic data each year. This requirement went into effect on Feb. 1 of this year.

What rights will job applicants and current employees have?

If you currently work for a company or are applying to work for one, you will have the right to know the pay range for your own position or any position you are applying to, according to the state.

All people applying for a particular employment position are considered “applicants” and can request to see pay ranges – not just those an employer deems qualified, the office said.

If an employee or prospective employee believes their rights have been violated, they can file a complaint with the Attorney General’s Civil Rights Division.

What if an employer doesn’t comply?

If an employer does not comply with these requirements, the state will begin giving penalties.

Violating employers will receive a warning for the first offense, a fine of up to $500 for the second offense, a fine of up to $1,000 for the third, and more serious penalties for subsequent offenses, according to the Attorney General’s office.

Until Oct. 29, 2026, employers will have two business days to fix violations after receiving a Notice to Cure letter from the office.

More extensive information about the pay transparency law can be found on the Office of the Attorney General website.