A new Massachusetts law that took effect Oct. 29 requires most employers to post pay ranges in job listings, a step designed to make wages fairer and narrow long-standing gender and racial pay gaps.

The law, titled “An Act Relative to Salary Range Transparency,” applies to employers with 25 or more workers. It mandates that covered employers include a “good-faith” pay range, either annual salary or hourly wage, in every job advertisement and share that range with applicants during the hiring process. Employers must also provide the range to current employees when they are offered a promotion, transfer or request it for their own position.

The state’s Attorney General’s Office will enforce compliance. The agency may issue a warning for a first violation, followed by fines up to $500 for a second, $1,000 for a third and as much as $25,000 for repeated violations. A limited “cure period” allows employers to correct postings before penalties apply.

Why the law matters

According to state officials, pay transparency aims to combat wage inequality that often affects women and workers of color. In Massachusetts, women earn about 83 cents for every dollar earned by men, with Black and Latino workers facing even wider gaps, the Attorney General’s Office reported in its wage-equity brief.

“The hope is that by increasing transparency about pay ranges, disparities will disappear, and we will see greater equity across gender, race, nationality and so forth,” said Ryan Quinn, an assistant teaching professor at Northeastern University, in an interview with GBH News. Quinn added that the new law builds on earlier equal-pay measures and pushes companies to adopt consistent, fair compensation practices.

For small business owners

The change introduces new posting obligations for many small employers but also codifies practices some already follow.

Alafia Young, owner of Dream Kid Spa in the Hyde Park section of Boston, said transparency has long been part of her company’s culture.

“We’ve always been transparent with pay, even before this law,” Young said. “It helps us retain employees because when people know what they’re getting, they stay.”

Young said clarity around wages saves time and money in the long run. She explained, new hires could leave after a few weeks because they misunderstand the pay rate. “That turnover costs a lot — onboarding, training — so being upfront about pay keeps everyone satisfied from the start,” she said.

Still, she acknowledged the pressure small businesses face as wages rise across industries. Transparent pay scales, she said, can “nudge the market” to keep rates competitive, but they may also push operating costs higher.

“Being transparent doesn’t just mean higher pay,” Young said. “It means finding other ways to make your workplace enjoyable, boosting morale, building loyalty, because if people aren’t happy with what they get, they won’t deliver that top-quality service.”

What job seekers should know

For job seekers, the law provides a clearer view of what a position pays before applying, and stronger footing in salary negotiations.

Anyone applying for a job with a Massachusetts-based employer that has 25 or more employees should expect to see a pay range in the posting. If it’s missing, applicants may ask for it directly or file a complaint with the Attorney General’s Office.

Job candidates can also ask pointed questions, such as:

- “How does my experience place me within this range?” n “Does the range include commissions or bonuses?”

- “What opportunities exist for raises or promotions within this band?”

The law also benefits current employees. Covered employers must provide pay ranges for an employee’s current role upon request, ensuring internal transparency and reducing information gaps that historically favored management.

Compliance steps for employers

Employment attorneys recommend that small businesses take several steps to stay compliant:

1. Audit headcount to confirm whether they meet the 25-employee threshold, including part-time and remote workers whose main work location is in Massachusetts.

2. Review all job postings to ensure salary or hourly ranges are listed clearly and accurately.

3. Document how ranges are set, considering market data, job responsibilities, and internal equity, so they can defend their “good-faith” estimates if questioned.

4. Train hiring managers and recruiters to disclose ranges during interviews and when discussing promotions.

5. Check vendors and job boards to ensure third-party recruiters follow the same rule when posting Massachusetts-based jobs.

6. Communicate internally so employees understand their rights and the company’s obligations.

Companies with 100 or more Massachusetts employees must also submit annual, aggregated pay-data reports beginning in 2026. These submissions will mirror federal EEO-1 reporting and help the state track wage-equity trends over time.

How Massachusetts compares nationally

With the law’s passage, Massachusetts joins a growing list of states promoting salary transparency. California, Colorado, Connecticut, Hawaii, Illinois, New York, Rhode Island and Washington have adopted similar requirements, while several others are considering comparable bills.

Though specifics differ, some states apply to smaller employers or mandate disclosure during interviews rather than in postings, the national trend is clear: transparency is becoming a standard feature of American hiring.

Toward an equitable workplace

Quinn, the Northeastern professor, told GBH News that salary disclosure laws encourage businesses to think critically about pay structure and fairness. “When compensation practices are hidden, inequality can thrive,” he said in the report. “When they’re visible, employers have to justify them.”

For small business owners like Young, the law formalizes a practice she believes strengthens trust.

“There’s no right or wrong to this transparency law,” she said.

Whether it’s a corner spa or a corporate office, Massachusetts employers now face a clearer mandate: Equal pay begins with open information.