Bill Passed: It Will Soon Be Illegal to Ask Prior Compensation in Massachusetts

Bill Passed: It Will Soon Be Illegal to Ask Prior Compensation in Massachusetts

8 Facts You Need to Know About Massachusetts Bill S.983

 

1. Bars employers from asking about applicants’ salaries before offering them a job
2. The new law will require hiring managers to state a compensation figure upfront
3. Will go into effect in July 2018
4. Companies will not be allowed to prohibit workers from telling others how much they are paid
5. Will require equal pay not just for workers whose jobs are alike, but also for those whose work is of “comparable character” or who work in “comparable operations
6. Business lobbyists argue that such laws would increase litigation and unfairly restrict employers’ compensation decisions
7. This gives workers the right to sue companies directly for violations
8. People will still be allowed to volunteer their salary information

 

Link to Bill:

 

Questions that will have to be answered:
– Will this bill close the equality gap or add another layer of risk of litigation to both small and large businesses in Massachusetts?
– Is it illegal for a company to make an offer to a prospective employee that is outside the stated range before the process? Example: The stated range is 200-245K, but an offer came in at 195K
– What recourse does an employee have if their new colleague was offered more than the previously stated range?
– How much are companies at risk for with violations?
– What evidence shows this approach will help pay equality?
– If a prospective employee chooses not to disclose past compensation and is removed from the interview process, can they file a discrimination suit?
– Who would the burden of proof fall on to prove salary was asked or not asked?
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