Kate Rigby, Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Boston office, was quoted in the Bloomberg Law Daily Labor Report, in “Massachusetts Employers Brace for 'Lose-Lose' Salary Range Law,” by Allie Reed.
Following is an excerpt:
Massachusetts businesses are scrutinizing their hiring and pay practices in a bid to stave off employee unrest once they’re forced to disclose salary ranges in job postings next year.
The Bay State this year became one of 12 states to enact legislation mandating pay transparency in an effort to advance workplace equity. Large businesses will need to submit wage data to the state in February 2025, and public and private employers with 25 or more workers in Massachusetts will need to start disclosing pay ranges in job postings come October 2025.
Management-side employment lawyers say it’s best to conduct pay equity audits in advance and resolve discrepancies before salary ranges become public, as a way to avoid discrimination suits. …
‘Now Is the Time’ …
Pay equity audits are especially important after the “great resignation” sparked by the Covid-19 pandemic and the hiring boom that followed, said Katherine Rigby, a member of Epstein Becker & Green. Such audits would also give businesses an opportunity to ensure they haven’t run afoul of the state’s 2018 equal pay law prohibiting wage discrimination since its enactment.
“Now is the time for companies to ensure that their house is in order,” said Rigby. …
Muted Impact? …
Once penalties do kick in, companies can be fined anywhere from $500 to $25,000 depending on how many violations they’ve committed.
Attorney General Andrea Campbell (D) said in a statement that her office “will enforce this new law just as it does for all laws on the books, while understanding that it may take some time for employers to fully understand their new obligations.”
The state plans to release more information about the law’s implementation, which Rigby said she hopes will address some of its unanswered questions. Among them are whether the law applies to job postings for remote workers, or jobs where employees work in person in Massachusetts and remotely from other states.
“The Massachusetts Attorney General’s office is somewhat aggressive in their auditing, so companies need to take that seriously,” Rigby said.