In an effort to eliminate wage discrimination, Massachusetts has passed pay equity legislation. This bill was passed unanimously and will go into effect on July 1st, 2018.

The new law allows employees to freely discuss their salaries with coworkers and prohibits employers from requiring applicants to provide their salary history before receiving a formal job offer.  This is going to be a major shift to many employers’ interview process, and limit the ability to have insights about salary history before making a job offer.

The law has a three-year statute of limitation, therefore, it is recommended that employers conduct a self-evaluation of pay practices now and take steps to address any wage differentials.  It is also wise not to wait until July to eliminate pay history questions from your hiring process and job applications.

For more information on this topic and how it could affect your business, please contact Dawn M. Hagman, SPHR, SHRM-SCP, DGC’s Principal in Human Resources at 781-937-5345 / dhagman@dgccpa.com.