Key Changes Coming for Employers in 2025
Introduction
At People2.0, we’re committed to keeping our partners informed about legislative changes that may impact your business operations. We want to bring your attention to a recent update in Massachusetts: An Act relative to salary range transparency, which introduces new requirements for salary disclosure and reporting.
Understanding the Legislation
Overview
This new law requires employers to disclose salary ranges and protects employees’ rights to request this information. It also mandates wage data reporting for larger employers. It goes into effect on July 31, 2025.
This legislation is part of a growing trend we’re seeing across the United States, with similar laws already in place in states like Colorado and California. As this trend continues to spread, companies should prepare to implement these practices across their operations.
Objectives
The legislation aims to increase pay equity and transparency in Massachusetts.
Key Provisions
- Employers with 25+ employees must disclose salary ranges in job postings and upon request
- Employers with 100+ employees must submit wage data reports to the state
- Protections for employees against retaliation for requesting salary information
- The Attorney General’s Office gains enforcement authority
Common Misconceptions
This law doesn’t just affect new job postings – it also applies to internal transfers and promotions.
What It Means for You
Impact Analysis
If you have 25 or more employees in Massachusetts, you’ll need to ensure your job postings and internal processes comply with the new salary range disclosure requirements. Businesses with 100 or more employees must also submit wage data to the Attorney General’s Office.
Requirements
- Update job postings to include salary ranges
- Establish a process for disclosing salary ranges for transfers and promotions
- If you have 100+ employees, prepare to submit wage data reports
Opportunities
This legislation provides a chance to review and potentially improve your compensation practices, enhancing transparency and equity within your organization.
Next Steps and Action Plan
Immediate Actions
- Review your current job posting and internal communication practices
- Begin drafting updated policies for salary range disclosures
- If applicable, start preparing for wage data reporting
Long-Term Strategies
Consider conducting a comprehensive pay equity analysis to ensure your compensation practices align with the spirit of this legislation.
Personalized Assistance
Reach out to your People2.0 representative for tailored support in implementing these changes.
Navigating Compliance Together
As your partner in the evolving global talent marketplace, People2.0 is here to help you navigate these new requirements. By proactively addressing the changes brought on by the new legislation, we can work together to ensure your business remains compliant and continues to thrive. Let’s embrace this opportunity to foster greater transparency and equity in the workplace.
