BOSTON — Massachusetts businesses with more than 25 employees must disclose salary levels when posting job openings, under a new bill signed into law Wednesday, bringing the state in line with 10 other states that already require salary transparency.
The new law also protects employees’ right to ask their employer about salary ranges when applying for a job or seeking promotion.
“This new law is an important next step in closing the wage gap, particularly for people of color and women,” Gov. Maura Healey, a Democrat, said in a written statement after signing the bill. “It will also strengthen the ability of Massachusetts employers to build diverse, talented teams.”
With Healey’s signature, Massachusetts becomes the 11th state to mandate salary transparency by requiring employers to make their pay scales public, proponents of the bill said, citing data from the National Women’s Law Center.
Supporters said the new law builds on a 2016 state law that banned wage discrimination based on sex.
“Massachusetts is now one step closer to ensuring equal pay for equal work,” Democratic House Speaker Ronald Mariano said after lawmakers sent the bill to Healey last week. “Wage transparency will not only make our workplaces fairer, it will also make Massachusetts more competitive with other states.”
Senate Democratic Leader Karen Spilka said last week that it’s all too common for women and people of color to be paid less than their counterparts across the country, and Massachusetts is no exception.
The president of the Associated Industries of Massachusetts, which calls itself the state’s largest business association, praised lawmakers for working with advocacy groups and business groups to reach a final compromise on the bill.
“AIM believes these important policy changes strike the right balance by encouraging open and honest communication about pay while not overburdening our employers with burdensome and time-consuming reporting requirements,” AIM Chair Brooke Thomson said after the final bill was published.
The law also requires businesses with more than 100 employees to share their federal wage and workforce data reports with the state Executive Office of Labor and Workforce Development. The agency is responsible for compiling and publishing aggregate wage and workforce data to identify gender and racial wage gaps by industry.
The Public Prosecution Service will also be given the power to impose fines or civil summonses for violations of the law. In addition, employees will be protected from reprisals if they ask for a salary scale during a job application or promotion.
The Attorney General will conduct a public awareness campaign about the new rules.
In Greater Boston, the gender pay gap was 21 cents in 2023, according to the Boston Women’s Labor CouncilAccording to the group, black women faced a 54 cent wage gap, while Hispanic and Latino women faced a 52 cent wage gap and Asian women faced a 19 cent wage gap.