With the goal of attracting more workers to the Bay State, a compromise bill has been drafted to address pay equity. The Frances Perkins Workplace Act (named after the first woman to serve as US Labor Secretary) will strengthen the Equal Pay Act that was passed in 2016. Supported by industry groups, wage advocacy groups and legislators, this act looks very likely to be enacted.
WHAT IS IN IT?
- Employers with 25 full-time workers or more must disclose salary ranges in job postings and protect employee’s right to ask for salary ranges;
- Organizations with 100 or more full-time employees must submit its federal EEOC report on workplace demographics to the state. The state will publish the results of the data by sector annually to track inequities by race and gender.
WHEN WILL THIS TAKE PLACE?
- The full house taking up the measure soon and the effective date will be in 2024.
HOW WILL IT BE ENFORCED?
- The Attorney General’s office would oversee enforcement. Non-compliance with salary transparency carries penalties up to $1000 per offense.
WHY?
- All the cool kids are doing it! Seriously, pay transparency is considered an important tool to close the wage gap for woman and people of color. California, Connecticut and New Jersey have all passed similar transparency laws, as well as the city of New York.
- Wage transparency is an effort to make Massachusetts more competitive.
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