MEET THE NEW LAW:  Massachusetts Pay Equity Law

The Age of Wages

Mind the Wa ge Gap   National Wage Gap: 79% Massachusetts Wage Gap: 82%

THE MYSTERY OF THE WAGE GAP Forty Percent of the Wage Gap is Unexplained. Possible Explanations Include: Overt sexism Unintentional gender-based discrimination Reluctance among women to negotiate for higher pay  Secrecy surrounding wage data

OR TWO STATUTORY PROHIBITIONS Discriminatory Animus Male v. Female + Pay Disparity + Comparable Work

WHAT IS COMPARABLE WORK ANYWAY? “Comparable Work” means 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.

SIX PERMISSIBLE JUSTIFICATIONS FOR PAY DISPARITIES 01 a seniority system; 02 a merit system; 03 a system which measures earnings by quantity or quality of production or sales;

THREE MORE 04 the geographic location in which a job is performed 05 education, training or experience to the extent such factors are reasonably related to the particular job in question and consistent with business necessity; or 06 travel, if the travel is a regular and necessary condition of the particular job

ADDITIONAL UNLAWFUL PRACTICES no prohibiting employees from disclosing wage information ADDITIONAL UNLAWFUL PRACTICES no screening job applicants based on wage or salary histories no requesting salary history from prospective employees until an employment offer with compensation has been negotiated and made no retaliation against employees who complain about pay disparities

PAY INFORMATION AND TRANSPARENCY PROVISIONS  

PROHIBITION ON SEEKING SALARY HISTORY Cannot seek wage or salary history from applicants Salary History can be voluntarily provided Cannot seek salary history from previous employers But employer “may seek or confirm a prospective employee’s wage or salary history after an offer of employment with compensation has been negotiated and made.” Asking about expected or desired salary likely permitted (subject to regulations) Caution: Basing salary on expected or desired salary could lead to disparate compensation for comparable jobs

IMPLICATIONS OF SALARY HISTORY PROHIBITION Revise applications that seek salary history Train interviewers not to seek salary history Obtain expected or desired salaries of applicants

PAY TRANSPARENCY Cannot prohibit employees from discussing or, inquiring about, or disclosing info about their own wages or the wages of another employee Exception: Employers can prohibit HR employees or supervisors from disclosing wage information about an employee without his/her written consent. The law does not obligate employers to disclose or share wage information about other employees.

Review/revise confidentiality, trade secret, non-compete agreements IMPLICATIONS OF PAY TRANSPARENCY PROVISIONS Revise policies that prohibit employees from discussing, inquiring about, or disclosing wage information Review/revise confidentiality, trade secret, non-compete agreements Cannot discipline employees for discussing, inquiring, or disclosing wage information  

QUESTIONS