The Frances Perkins Workplace Equity Act is set to reshape the way Massachusetts employers handle pay, hiring, and workplace equity. Designed to promote transparency, eliminate pay disparities, and strengthen protections against discrimination, this law introduces important compliance requirements that businesses need to prepare for now.
Key Provisions Employers Need to Know
1. Pay Transparency Requirements (Effective October 29, 2025)
Employers with 25 or more employees must include salary ranges in job postings and provide pay scales to current employees upon request. This aims to reduce pay secrecy and give applicants and employees the information they need to ensure fair compensation.
2. Workforce Demographic Reporting (Effective February 1, 2025)
Companies with 100 or more employees must submit annual workforce demographic data to the Massachusetts Executive Office of Labor and Workforce Development. Reports will include statistics on hiring, promotions, and compensation by gender, race, and ethnicity, similar to federal EEO-1 reporting.
3. Expanded Anti-Retaliation Protections
The Act strengthens protections so employees can discuss wages, raise equity concerns, or file complaints without fear of reprisal.
4. Internal Pay Equity Assessments
Employers with 250+ employees must conduct internal pay equity audits every three years and share a summary of results with their workforce. This proactive step helps identify and correct pay gaps before they become compliance issues.
5. Expansion of Protected Classes
The Act broadens Massachusetts’s anti-discrimination protections to include:
Gender identity
Sexual orientation
Caregiver status
Previous incarceration
Employers must ensure their policies and practices reflect these expanded protections.
6. Enforcement and Penalties
The Massachusetts Attorney General’s Office now has expanded enforcement authority, including:
Issuing civil penalties for non-compliance
Pursuing public enforcement actions
Supporting private right-of-action claims
Non-compliance could be costly — both financially and reputationally.
Embracing pay transparency and equity isn’t just about compliance — it’s a chance to attract top talent and build a stronger workplace culture.
Impact for Employers
The Act requires a thorough review of HR practices related to compensation, recruiting, promotions, and reporting. Steps to prepare include:
Establishing or refining systems for pay audits and demographic tracking
Training managers on equity and non-discrimination policies
Updating job postings, employee handbooks, and documentation to meet transparency requirements
Impact for Employees
Workers gain greater insight into compensation, stronger anti-discrimination protections, and better tools to advocate for fair treatment using legally supported data.
Challenges and Opportunities
While some employers are concerned about increased administrative burdens, others see this as an opportunity to:
Build more inclusive and equitable workplaces
Strengthen employer branding in a competitive talent market
Attract and retain top talent by embracing transparency
Businesses that adapt early will gain both operational advantages and a reputation for fairness.
How HR Business Partners Can Help
Navigating these changes can be complex, but you don’t have to do it alone. HR Business Partners LLC works with employers and HR professionals across Massachusetts to:
Review and update policies
Conduct pay audits and compliance assessments
Provide training on equity and anti-discrimination laws
Ensure your business is prepared, protected, and compliant
Call us today to learn how we can help your team stay ahead of the Frances Perkins Workplace Equity Act and keep you compliant.
