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New 2018 Massachusetts Bill to Create Pay Equity

12-08-2016

A new law in Massachusetts, coming into effect in January 2018, is designed to achieve pay equity by encouraging employers to give new employees salaries based on the value of the job role.

By making certain practices unlawful -practices that may unintentionally create pay disparity- jobs that are of “comparable character” or require work in “comparable operations” will require equal pay.

The new law will make it illegal for an employer to:

  • Stop employees discussing their own salaries or colleagues’ salaries
  • Ask potential employees about their previous salary history
  • Seek the salary history of a prospective employee from the employee’s current or former employer unless the prospective employee gives the prospective employer written authorization to obtain such information after an offer of employment has been made

By ensuring salaries are based on job value rather than previous salary, the new law should reduce the pay gap between men and women. In the US, women typically only earn $0.79 for the $1 men do, for the same job.

See a full summary of the bill here.

What are your thoughts on the new legislation? Tweet us @STRGroup_USA

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