Major Pay-Transparency Updates for Multistate Employers: Massachusetts & California

As more and more states roll out pay-transparency obligations, employers operating across jurisdictions need to stay ahead of the curve. Two states leading this change are Massachusetts and California—and the updates affect how you post jobs, set pay ranges, and communicate with employees.

Massachusetts – Effective October 29, 2025

Under the new law, titled An Act Relative to Salary Range Transparency, employers that had 25 or more employees whose “primary place of employment” is in Massachusetts (including remote roles aligned with the state) must:

• Include a clear salary or hourly-wage range in all job postings.
• Provide the pay range to current employees upon request (for promotions, transfers, or general inquiries).
• For larger employers (such as those already filing EEO data reports), submit aggregated pay-data to the Commonwealth.

Key definitions matter: The “pay range” is defined as the range the employer reasonably and in good faith expects to pay at that time. Also, the term “primary place of employment” may include remote workers whose employer ties them to Massachusetts.

California – Effective January 1, 2026

California’s changes arrive via Senate Bill 642, amending the state’s pay transparency and equal pay statutes. Employers should note the following upcoming requirements:

• When posting jobs that may be filled by workers in California, employers must include a “pay scale” defined as the wage or salary range the employer reasonably expects to pay upon hire – and in good faith.
• For equal-pay claims, “wages” and “wage rates” are now expanded to include all forms of compensation (salary, bonuses, stock options, benefits, reimbursements, etc.).
• The statute of limitations for such claims increases: employees may now go back up to six years for recovery, and the claim‐period is extended to three years from the last discriminatory pay act.
• Also, language is updated to replace “opposite sex” with “another sex,” thereby clarifying protections for non‐binary individuals under the equal payoff provisions.

Why These Changes Matter to You

If your business hires or posts jobs in multiple states—or allows remote work across state lines—these updates matter because:

• You may need to review and update job postings, ensuring pay ranges are included where required.
• Pay range info may need to be given not only to applicants, but also to current employees upon request (especially in Massachusetts).
• Employers must revisit how they define compensation and ensure benefits, bonuses, and other pay components are accounted for in equal-pay analyses (especially in California).
• Compliance obligations (and potential penalties) vary by state; failing to adjust practices can expose your organization to liability across jurisdictions.

At Zhang-Louie PLLC, we are committed to keeping our clients and community informed about important legal and regulatory developments that may affect hiring practices, employment compliance, and immigration processes. This post aims to help employers, employees, and professionals stay updated as pay transparency requirements continue to evolve across multiple states.