Starting July 31, 2025, a new Massachusetts pay transparency law, HB 4890, will require many employers to make significant changes to how they advertise job openings. Under this legislation, businesses with 25 or more employees must include pay ranges in all job postings, including those distributed by third-party recruiters or staffing agencies. Massachusetts joins a growing number of states—like California, Colorado, and New York—that have passed pay transparency laws as part of a broader push toward pay equity and fairness in hiring practices.
1. Which Employers Must Comply with the Massachusetts Pay Transparency Law 2025
The law that is taking effect applies to employers with 25 or more employees, regardless of industry or whether those employees work full-time or part-time. It covers both internal and external job postings, which means companies must disclose pay ranges when offering advancement or lateral opportunities to current staff, not just for new candidates. The requirement also extends to any job posting made on the employer’s behalf (e.g., via a job board, external recruiter, or staffing firm). If the job is publicly posted, the pay range must be as well.
2. What Needs to Be Included in Job Postings
For every job posting, employers need to include a salary or hourly wage range that reflects what they believe in good faith they would pay for the role. It should not be a placeholder or a rough estimate, but instead must be rooted in actual compensation practices. While the new law focuses on base pay, employers can choose to include bonuses, commissions, benefits, or other forms of compensation to provide a more complete picture. Vague phrases like “competitive pay” or “commensurate with experience” fail to provide meaningful transparency and will not satisfy employers’ statutory obligation. Massachusetts is not alone: other states have already adopted these or similar requirements.
3. How to Prepare Operationally
Updated job description templates, internal approval workflows, and HR policies might require updating for employers to comply with HB 4890. Reviewing current pay structures can ensure that there is consistency across similar roles and departments. HR teams, hiring managers, and external recruiters will need to coordinate closely to ensure pay ranges align across all postings. Getting this right can help you avoid confusion as well as legal risk.
4. Legal and Compliance Implications
If the pay range a company posts does not align with what candidates are actually paid, any discrepancy could raise questions not only under this new law but also under existing pay equity and anti-discrimination laws. The new law does not directly impose penalties for individual employee complaints, however the Massachusetts Attorney General’s Office can investigate noncompliance. Before the changes take effect, evaluate your compensation strategies to ensure they are defensible and transparent.
5. The Bigger Picture: Pay Equity
The new HB 4890 requirements reflect a broader shift in how companies approach equity, transparency, and accountability. Employees, job seekers, and regulators alike are demanding clearer compensation practices. Even if your business operates across multiple states, adopting transparent pay practices in Massachusetts can serve as a framework for consistency throughout your organization. Forward-thinking employers will treat this law not just as a requirement, but also as an opportunity to strengthen trust and equity within their teams.
The Massachusetts pay transparency law 2025 takes effect in a few weeks, so preparation should begin now with practice audits, updates to templates, and alignment among all internal stakeholders on the upcoming requirements. Acting earlier enables businesses to reduce legal risk and build a more open and equitable workplace. Every business is different, however, and employers should connect with an attorney for advice on what compliance looks like for you. Sassoon Cymrot’s employment law team is here to help. Contact us today.
