Workforce Bulletin

In a letter notifying the City Council of his disapproval of the bills, Mayor Adams noted the “serious operational concerns” that could arise for the agency designated to enforce the pay data reporting law and expressed doubts about the bill’s clarity regarding which City businesses it covers. He also raised reservations about allowing businesses to report anonymously under the law, writing that the anonymity would “[disincentivize] respondents from providing accurate information while also stymieing any effort by the City to address potentially illegal pay practices.” The Mayor concluded by asserting that the “costs to the City and businesses operating here . . . outweigh any potential benefit this law may create.”

As we reported in the first installment of our series on pay transparency, pay equity legislation continues to trend nationwide. While Part I focused on salary range disclosure legislation, in Part II, we highlight mandatory pay data reporting requirements that are being considered in Massachusetts.

What is Mandatory Pay Data Reporting?

Pay data reporting laws require covered employers to submit detailed compensation data reports, often broken down by race and gender, to state-designated agencies. To date, California and Illinois have adopted such laws. Under California law ...