Massachusetts is expected to be one of the next states to require pay data reporting, following California and Illinois. It’s not a question of “if” but “when,” so now is the perfect time to determine your company’s strategy and deployment.

What to expect

The “Frances Perkins Workplace Equity Act” (HB4109) will require Massachusetts employers with 25+ employees to take the following actions:

• Disclose the salary or wage range for a position in all job postings

• Provide the salary range to employees who are offered promotions or transfers

• Provide the pay range to employees for their current role, if requested

Failure to act could have serious consequences, including legal action and reputational brand damage.

How to prepare

Companies should engage with a compensation expert to proactively adopt a strategy that will ensure compliance. Consider the following steps to incorporate pay transparency into your compensation philosophy and keep your workforce engaged:

1. Develop/update pay ranges and job architecture: Review all roles to ensure compliance with pay transparency laws and regulations.

2. Conduct a pay equity study: Identify and address potential pay disparities based on gender, race, or other factors.

3. Give employees access: Proactively provide employees with their respective pay range and job architecture information to foster trust. This is also a great opportunity to support their career growth by helping them understand how to increase their earnings in the future.

4. Adopt best practices: Leverage pay transparency to encourage leveling roles based on responsibility and scope and reviewing compensation for employees in the lower third/quartile of the pay range.

 We can help!

Ensure success by preparing now. A solid pay strategy will result in more educated, engaged, and motivated employees and avoid unnecessary risk. Newfront partners with Alpine Rewards to deliver trusted compensation expertise. Reach out to the Newfront team to get connected and get to work on a successful strategy.