Carolyn Marcotte Crowley, partner, shared her insight on Massachusetts’s new pay transparency law, “An Act Relative to Salary Range Transparency,” in the Massachusetts Lawyers Weekly article “New Pay Transparency Law Seen as Kinder Than Analogs Elsewhere.” The new law is considered less stringent than similar laws in other states. Unlike laws in New York City and California that require employers to post salary ranges in job listings, the Massachusetts law only mandates that employers provide salary ranges to candidates upon request. This is seen as a more flexible approach, offering employers some discretion while still promoting transparency in pay practices.
Employers and attorneys believe this law strikes a balance between the needs of businesses and the growing demand for pay equity. The flexibility of the law allows companies to maintain competitive pay practices without being forced to disclose salary ranges publicly, which some argue could lead to pay compression and loss of competitive advantage. However, Carolyn noted that disclosing the pay range doesn’t seem to include other elements of total compensation, such as bonuses, commissions, equity, stock options, and other benefits.
Overall, the law is viewed as a kinder and more business-friendly approach to pay transparency compared to other jurisdictions. It aims to foster trust between employers and employees without imposing overly burdensome regulations. The article suggests that while the law may not go as far as others in the United States, it represents a step forward in addressing pay equity issues in Massachusetts.
Massachusetts Lawyers Weekly subscribers can read the full article here.