On August 1, 2016, Governor Baker signed into law An Act to Establish Pay Equity (the “Act”). The Act does not go into effect, until July 1, 2018, and it is too early to tell how it will affect Massachusetts employers. In this article we present a general overview of the Act and what it could mean for employers. We will provide updated analysis of the Act, and any regulations issued by the Attorney General’s office, when the effective date is closer.
The Act prohibits discrimination in payment of wages on the basis of gender. More specifically, the act prohibits paying a lower wage to employees of different genders when the employees perform comparable work. The Act uses a broad definition of “wages”, but fails to define the term “comparable work”, which could lead to a number of lawsuits soon after the Act goes into effect. [Read more…]