The Bay State may be the 11th state in the US to pass a wage transparency bill into law, moving closer to closing race and gender pay gaps in the workplace.
Changing Employment Practises
Medium-sized Massachusetts businesses should watch their back – state lawmakers approved a new bill on Wednesday that could change the way their employment practices work.
The Frances Perkins Workplace Equity Act
If passed into law, the Frances Perkins Workplace Equity Act would require all businesses with 25 employees or more to share the salary range of new positions that are advertised in job posts.
Protecting Employee Rights
It would also further protect the rights of current employees to ask their employers about salary ranges in the workplace.
Other Employer Obligations
Workers will be able to request info about their job’s salary range at any point during their employment, and employers will also have to share pay range info whenever an employee is promoted or transferred.
Sent to the Governor
The salary transparency bill was one of a number passed in a hurry by Beacon Hill lawmakers on Wednesday and has been sent to Democratic Gov. Maura Healey’s desk, with an expectation that it will be signed into law in the coming week.
Things Are Looking Optimistic
While it hasn’t been confirmed, Healey’s office did release a statement saying that the Governor was looking forward to signing the bill and that she had “long supported efforts to make pay and hiring more equitable and transparent.”
The 11th State
If Healey approves the bill it will make Massachusetts the 11th state to implement a similar salary transparency law that requires employers to disclose salary ranges, according to data from the National Women’s Law Center.
Reducing Workplace Inequity
These bills bring states a step closer to reducing employment and economic inequities between genders and racial groups, as there are still notable wage gaps between men and women, and white Americans and people of color, according to advocates for the bill.
Joint Statement from Proponents
Sen. Patricia Jehlen, D-2nd Middlesex, and Rep. Danielle Gregoire, D-4th Middlesex, who both lead negotiations to pass the bill, released a joint statement reiterating this potential for equity progress.
For Those Who “Undervalue Their Work”
“This bill would require the disclosure of a pay range for any job being offered by an employer with at least 25 employees,” the statement read. “An employee would be allowed to request the pay range for their current position. Studies show that women and people of color undervalue their work.”
A Better Avenue
By requiring more pay transparency, groups that have historically underestimated their starting salaries at a new job now have better avenues to achieve more equitable pay.
Easier to Negotiate
“These actions would ensure that people know the value of their labor and can negotiate for better pay with access to better information,” the joint statement continued.
Addition to the 2016 Bill
Advocates for the bill have also described it as a new addition to an earlier gender wage discrimination law passed in Massachusetts back in 2016.
“One Step Closer” to Equal Pay
“With the passage of this legislation, Massachusetts is now one step closer to ensuring equal pay for equal work,” said Democratic House Speaker Ronald Mariano.
Making Massachusetts More Competitive
“Pay transparency will not only make our workplaces more equitable, it will also make Massachusetts more competitive with other states,” he added.
Filing Employment Data
Under the law, employers with 100 or more employees will also have to file equal employment data, including wage and workforce reports, with the Secretary of State’s Office.
Pay Disparity Data Agreggate
The state Executive Office of Labor and Workforce Development will be required to use this newly acquired company data to aggregate new data that shares insights into racial and gender disparity across the state workforce.
One Year On
If the bill is passed, the requirements around job posting transparency will go into effect one year after the bill is signed.
A Long Time Coming
A final decision on the Frances Perkins Workplace Equity Act has been a long time coming in Massachusetts. It passed through the House last year in October, and again through the Senate (in a nearly unanimous vote) the following week.
Waiting On the Committee
However, it was stuck in committee hearings for months, after a major proponent of the bill and co-chair of the committee, Rep. Josh Cutler, resigned from his position in February.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
