Massachusetts Pay Equity - September 21st, 2016

Effective July 1, 2018, Massachusetts will officially become the first state to prohibit employers from asking job applicants about their salary history.

WHAT THE DOES THIS LAW MEAN?

  • Unless applicants voluntarily disclose this information, employers can’t ask until a job offer with compensation is made.
  • Only once the job offer with compensation is made, can employers obtain a verification of income.
  • The law bans salary secrecy, as it allows employees to freely discuss their salaries with coworkers.
  • The law was signed in order to ensure equal pay for comparable work for Massachusetts workers and equal opportunities to earn competitive salaries in the workplace.

EMPLOYERS BEST PRACTICE CONSIDERATIONS?

  • Job applications that seek past salary information, interview notes, or guidance that include questions on salary history, must be revised to eliminate such questions.
  • For multi-state employers, applications should, at a minimum, be updated to indicate that Massachusetts applicants should not answer any salary history questions.
  • Company policies that prohibit employees from discussing compensation with their co-workers must be revised to clarify employees’ rights to engage in such conversations.

REMINDER: The new law goes into effect July 1, 2018.