Massachusetts Governor Charlie Baker has signed S.B. 2119, An Act Establish Pay Equity, making it unlawful for any employer to discriminate on the basis of gender in the payment of wages, or pay any employee a salary less than the rates paid to its employees of a different gender for comparable work. Under the new act, comparable work is defined as “work that is substantially similar in that it requires substantially similar skill, effort and responsibility and is performed under similar working conditions; provided, however, that a job title or job description alone shall not determine comparability.” Wage variations can occur if based on:
- Seniority
- Merit system
- System measuring earnings by quantity or quality of production, sales, or revenue
- Geographic location
- Education, training or experience that is related to a particular job
- Travel (if regular and necessary).
Employers are prohibited from requiring employees to refrain from inquiring about, discussing, or disclosing information about their own wages or any other employee’s wages. Furthermore, employers are prohibited from screening prospective employees based on their wage histories. The aim of the act is to stop employers from using a salary history as a legitimate basis to pay a man more than a woman for comparable work. Lastly, employers are prohibited from seeking salary history from the prospective employee’s current or former employer, unless the prospective employee provides a written consent or the information is a public record.
Although the law goes into effect July 1, 2018, employers are encouraged to complete a self-evaluation of its pay practices now. The new law can provide employers with an affirmative defense if they take steps to eliminate pay disparities within the three years prior to the commencement of an action alleging a violation of the law. Employers must have completed a self-evaluation of its pay practices in good faith, and demonstrate that progress has been made towards eliminating wage differentials based on gender for comparable work.
Compliance Poster Company will continue to monitor the enacted bill for new updates.