Massachusetts Pay Transparency. Single-State Compliance.
Beacon Hill Capital. Boston. Monday, 8:47 AM ET.
An interactive scenario about a joint MA AGO + MA EOLWD inquiry, fourteen postings missing pay ranges under MA Frances Perkins Workplace Equity Act, and the Massachusetts Equal Pay Law's quiet rule that "market rate" is not a defence.
One state. Two enforcement bodies stacked. One day to make three decisions.
VP of People at Beacon Hill Capital. A 220-person digital publisher headquartered in Boston. Every employee is in Massachusetts.
Your pay bands have not been updated in 18 months. This morning, the Massachusetts State Department of Labor and the MA Executive Office of Labor and Workforce Development opened a compliance review of your latest annual pay data report. Within the hour, a senior engineer will email you invoking MA Frances Perkins Workplace Equity Act.
This is a choose-your-own-adventure scenario. You will face three real decisions that a VP of People encounters when Massachusetts's Department of Labor comes knocking, and your choices shape how the story unfolds.
The 4 Stakeholder Bars (top right)
Each bar starts at 50%. Your decisions shift them. There’s no perfect answer. only trade-offs.
Massachusetts Stack
Massachusetts has the strictest pay transparency framework in the country. MA Frances Perkins Workplace Equity Act, the Equal Pay Act, the Pay Data Report, and the salary-history ban work together. Your decisions must account for all four.
Legal References
Law references appear throughout. Click them to read the relevant statute.
MA Frances Perkins Workplace Equity Act. State-Wide Pay Range in Postings.
Effective July 31, 2025. Employers with 25+ employees must include the pay range in every posting for jobs in Massachusetts. Employers with 100+ employees must additionally submit annual EEO-1 wage data to the MA Department of Labor by February 1 each year. The Massachusetts Attorney General enforces. Civil penalties: $500 first violation, $1,000 second, up to $25,000 third. The EEO-1 data is published in aggregate form on a public state register.
MA EEO-1 Wage Data Reporting. The Public Layer.
Massachusetts is the first US state to publish aggregate EEO-1 wage data on a public state register. Employers with 100+ employees file annually by February 1. The data is presented by occupation category, sex, and race/ethnicity. Plaintiffs’ attorneys, journalists, and ESG-rating agencies all monitor the register. A Frances Perkins Act finding that triggers re-examination of your filed EEO-1 data creates a second-order risk: the published data starts to look like the published violation.
MA Equal Pay Act (M.G.L. c.149 §105A).
No employer may pay employees of a different gender less than another for “comparable work”. Permissible justifications: documented seniority, merit, quantity or quality of production, geography, education/training/experience, or travel. Affirmative defence available if employer has conducted a good-faith self-evaluation in the past three years and made reasonable progress toward eliminating compensation differentials. Damages: full back pay plus an equal amount as liquidated damages, three-year statute of limitations.
MA Salary History Ban (c.149 §105A(c)).
Effective July 1, 2018. Employers cannot ask about or seek prior wage history as a factor in setting compensation. Applicants may voluntarily disclose; an employer may then use that information only after the offered compensation has been set. Cannot retaliate against an applicant who declines to share. The new wage rate must be derived from the role, not the candidate’s previous earnings.
You're halfway through your first coffee when Legal forwards you an email marked URGENT. RESPONSE REQUIRED.
"Dear Ms. Donovan, the Massachusetts Attorney General's Fair Labor Division is reviewing Beacon Hill Capital's compliance with the Frances Perkins Workplace Equity Act (effective July 31, 2025). Our public-records review of your careers page identifies fourteen (14) active job postings that lack the pay range required by the Act for jobs to be performed in Massachusetts."
"Per the Frances Perkins Act, civil penalties are $500 for the first violation, $1,000 for the second, and up to $25,000 for the third or subsequent violation. The Office is also notifying you that your annual EEO-1 wage data report under the same Act is due February 1 — thirty-four days from today. Beacon Hill Capital exceeds the 100-employee threshold for the public reporting requirement. The data will be published in aggregate form on the public Massachusetts Pay Equity Register."
"Please provide a written response within ten (10) business days, including (1) your remediation plan for the posting violations, (2) documentation of the pay ranges used in past postings and the methodology for determining them, (3) your forward-looking process for ensuring compliance with the Frances Perkins Act, and (4) confirmation of your readiness to file the February 1 EEO-1 wage data report on schedule."
"Sincerely, Investigator S. Goldberg, Fair Labor Division, Office of the Massachusetts Attorney General"
Before you can finish reading, Jordan Reeves, Head of Recruiting, calls from down the hall.

"Priya, I just saw the MA AGO letter. Fourteen postings. I counted them. They're right. None of them have a pay scale."
You "How did fourteen postings go live without ranges?"
Jordan "Because nobody built a check into the ATS. The template defaults to 'competitive compensation.' Most hiring managers don't override it."
You "And our pay bands? They're 18 months old."
Jordan "Worse. Our L5 engineering band on file says $95K to $125K. We hired three people last quarter at $130K to $142K because the market moved. The posted range, if we put one up, doesn't match what we've actually been paying."
You "So if we publish the band on the postings, we're publishing a number that contradicts our offer letters."
Jordan "And there’s a deadline collision. The Frances Perkins Act EEO-1 wage data report is due February 1 — that’s thirty-four days. The AGO wants our response in ten. Whatever pay-band evidence we surface for the AGO posting response will be staring back at us when we file the EEO-1 data on February 1. Plus the data goes on the public Pay Equity Register. We have ten business days. What do we tell them?"
The MA AGO has identified fourteen non-compliant job postings under the Frances Perkins Workplace Equity Act. Civil penalties: $500 first / $1,000 second / up to $25,000 third or subsequent. Beacon Hill Capital’s annual EEO-1 Wage Data Report is due February 1 — only thirty-four days from today. The data will be published on the public Massachusetts Pay Equity Register. MA Equal Pay Act equal-pay claims (full back pay plus equal liquidated damages) add the larger exposure if the postings reveal underlying pay disparities.
You have ten business days to respond. Your pay bands are 18 months stale, and whatever numbers you commit to will ripple through the entire company.
How do you respond?
"Update every pay band to current market and put a compliant pay scale on every active posting within 48 hours. Then we respond to the MA AGO with a corrective action plan AND a commitment to a privileged pay equity audit run through outside counsel."
Jordan "The audit is going to show that six current employees are below the new minimum of their own band. And probably that the MA EOLWD penalty layer is real."
You "I know. We find it before the MA AGO does. Privileged audit, then remediation. We choose the order."
By Friday, the updated postings are live. Your response to the MA AGO includes a corrective action plan, a timeline, and a confidential commitment to a privileged pay equity audit. Senior Deputy Director Alvarez's office acknowledges receipt and notes that the voluntary audit will be considered in any further enforcement evaluation.
MA Frances Perkins Workplace Equity Act penalties are per-employee, per-posting. Proactive remediation is a mitigating factor in MA AGO enforcement. Crucially, committing to a privileged pay equity audit run through outside counsel does two things: it surfaces the MA Equal Pay Act exposure before a plaintiff's attorney does, and it creates an attorney-client privileged process that, properly run, protects the working papers from civil discovery while preserving your obligation to remediate.
"Fix the 14 postings. Respond to the MA AGO addressing exactly the posting violation. The pay gap finding is a separate matter we'll evaluate internally."
Jordan "What if the MA AGO asks for the bona fide factor documentation? They specifically requested it in the letter."
You "We send what we have. We don't manufacture documentation we don't have."
Your response addresses the 14 postings. Senior Deputy Director Alvarez's office writes back: "Your response is silent on the Pay Data Report disparity finding and on the bona fide factor documentation requested in our original correspondence. Please advise within ten days whether Beacon Hill Capital intends to provide this documentation, or whether we should proceed under our independent investigative authority."
Responding only to what was asked is technically permissible. But the MA AGO asked for two things: the posting remediation AND bona fide factor documentation under MA Equal Pay Act. Answering only the easy half signals to the regulator that the harder half is the part you cannot defend. The follow-up letter is worse than the original because now you have demonstrated awareness of the gap without willingness to address it.
"Ask outside counsel to request a 30-day extension. We need time to assess the full exposure before we commit to a remediation plan."
Jordan "And the 14 postings that are live right now without a pay scale?"
You "They stay up while we figure out the right numbers. I don't want to post ranges we'll have to change in two weeks."
Investigator Goldberg's office denies the extension request. Response: "The violations identified are ongoing. Each non-compliant posting is a separate violation under the Frances Perkins Act. The February 1 EEO-1 wage data report deadline is statutory and cannot be extended. Failure to file by February 1 is a separate violation. The two compliance tracks will proceed in parallel; you will need to respond to both."
Meanwhile, a candidate screenshots one of the still-live postings. LinkedIn post: "Beacon Hill Capital is under MA AGO investigation for missing pay scales. And the postings are STILL up." 800 likes and climbing. By midday, three named class-action firms have posted advertisements targeting current Beacon Hill Capital employees in Boston.
Unlike some regulations that freeze penalties once you acknowledge the issue, MA Frances Perkins Workplace Equity Act treats each day a non-compliant posting remains live as a continuing violation. Requesting an extension while the postings stay up does not pause the clock. It runs it. Worse, the MA AGO has discretion to escalate to formal investigation under MA Frances Perkins Workplace Equity Act enforcement. Once that happens, the timeline is no longer yours to manage. What you are really delaying is not compliance. It is confronting the pay band problem underneath.
You've responded to the MA AGO, or at least started to. While you were drafting, this landed in your inbox from Lauren Mitchell, Senior Engineer.
"Hi Priya, Under Massachusetts MA Frances Perkins Workplace Equity Act, I'm formally requesting the pay scale for my current position (Senior Software Engineer, L5). I understand the company is required to provide this upon request. Thank you."
You pull up the compensation file for Senior Software Engineers (L5) in Boston:
| Employee | Title | Years | Rating | Salary |
|---|---|---|---|---|
| Lauren Mitchell | Sr. Software Engineer | 4.5 | Exceeds | $118,400 |
| Brian Kowalski | Sr. Software Engineer | 3.5 | Meets | $142,000 |
| Gap | −16.6% | |||
Same title. Same level. She has a year more experience and better ratings. He was hired during the Q3 2024 talent crunch at a 20% market premium. Everyone knew it was a market adjustment. The question is whether "the market" is a valid explanation.
Under Massachusetts's Equal Pay Law, it's not.
Beacon Hill Capital's legal team has listed three reasons for the $23,600 gap between Lauren and Brian. Under Massachusetts's Equal Pay Law, which of these can legally justify a pay difference?
Click each to mark it LEGAL or ILLEGAL, then submit.
0 of 3 marked

"Thank you for the call, Priya. I'll be direct."
She shares her screen. On it: her last three performance reviews, her offer letter, and the text of MA Frances Perkins Workplace Equity Act.
"Two weeks ago, a recruiter from Stripe told me they'd start me at $145K for the same role. I wasn't looking, but I ran the numbers. That's when I started asking questions internally."
"I can't confirm exact numbers, but based on conversations, I believe I'm significantly below at least one male colleague at the same level. He was hired after me. His ratings are lower."
"Under MA Frances Perkins Workplace Equity Act, I have the right to request the pay scale for my position. I'm making that request formally."
Lauren has invoked MA Frances Perkins Workplace Equity Act. Massachusetts law requires you to provide the pay scale for her position. But your L5 band is 18 months old and doesn't reflect the premiums you paid during the talent crunch. Whatever number you share will either confirm her suspicion or create a new problem.

"Lauren, I'm going to update our L5 band to reflect current market rates. I'll have the updated pay scale to you by end of week. And I'm going to be straight with you. I think you're right that there's a gap worth looking into."
Lauren "I appreciate that. But Priya, when I get that pay scale and see where I sit versus where Brian sits, we both know what the next conversation is going to be."
You "I know."
Lauren "I don't want to leave Beacon Hill Capital. I want Beacon Hill Capital to be the kind of company that fixes this without me having to hire a lawyer."
She pauses.
Lauren "But I will hire one if I have to."
MA Frances Perkins Workplace Equity Act requires employers to provide the pay scale for the position. Sharing an outdated band that doesn't match what you're actually paying creates discoverable evidence of a broken system. Updating first is more work.but it's defensible work.

"Lauren, here's the L5 pay scale: $95,000 to $125,000."
A pause.
Lauren "The max is $125K?"
You "That's the current band on file, yes."
Lauren "Then how is someone at the same level making more than $125K? Because I know they are. Either the band is wrong, or someone is being paid outside the system. Both of those are problems."
She's right. Brian's $142K blows through the top of the band. You've just given Lauren proof that Beacon Hill Capital's compensation framework is broken.or selectively applied.
Sharing a pay scale that doesn't match reality creates worse evidence than sharing nothing. If Lauren's lawyer later discovers Brian is paid $17K above the band maximum, the outdated scale becomes Exhibit A: proof that the company doesn't follow its own rules.

"Lauren, I want to make sure I give you accurate information. Let me pull the data together properly. Can I get back to you in two weeks?"
Lauren "Two weeks for a number you should already have?"
She's polite about it. But you can hear the Stripe offer ticking in the background.
Lauren "I'll wait two weeks. But Priya.the fact that it takes two weeks to tell me the pay range for my own job title tells me something about how this company thinks about pay. And it's not great."
She accepts Stripe's offer eleven days later. She doesn't file a complaint. She doesn't need to.she just leaves. And she tells the other three women on the engineering team why.
Under Massachusetts’s Equal Pay Act, Lauren had the right to know the pay scale for her position. Taking two weeks to produce a number you should already have signals that pay data isn’t managed. which is exactly the conclusion she drew. The compliance cost was +1. The real cost was losing a top-performing engineer to a competitor who publishes ranges publicly. Under MA Frances Perkins Workplace Equity Act, maintaining current pay scales isn’t optional. it’s a recordkeeping requirement.
Tom Brennan has modeled three scenarios against Beacon Hill Capital's Massachusetts exposure. Click each card to see the full breakdown.
Under MA Equal Pay Act, "market rate" is explicitly not a defence. If Lauren files, back pay plus equal liquidated damages is the floor, not the ceiling. And the MA Frances Perkins Workplace Equity Act posting violations remain open.
MA Frances Perkins Workplace Equity Act posting fix clears the immediate MA AGO finding. The privileged audit surfaces and remediates MA Equal Pay Act exposure before a plaintiff's attorney does. MA AGO enforcement priorities give weight to voluntary remediation in mitigation.
A class action attorney has already tagged Beacon Hill Capital employees in LinkedIn posts about Massachusetts pay equity rights. Lauren has spoken to an employment lawyer. The MA Frances Perkins Workplace Equity Act posting violations are public record. Any applicant can see them. So can the MA AGO.
Before the CFO meeting, reflect. There's no right answer.but where you stand shapes how you lead. Click on the grid to place yourself.
Tom Brennan, the CFO, has run the numbers.
Brennan "If we update every pay band to current market and level up everyone who's below the new minimum, that's $2.1 million annually. That's 1.8% of revenue."
"If we adjust only the people who've formally complained. Lauren today, maybe two or three more. That's $280K. A fraction."
"I know which number the board will prefer. And I'm guessing you're about to tell me why the smaller number is actually the more expensive one."
You "Lauren alone: if she files under the Massachusetts Equal Pay Law, we're looking at the salary differential times every year she's been underpaid.that's roughly $94K in back pay. Plus liquidated damages equal to that amount. Plus her attorney's fees. And 'market rate' is explicitly not a defense in Massachusetts."
Brennan Long pause. "How many more Laurens are there?"
You "I don't know yet. That's the problem."
He looks at the spreadsheet again. "Present your options at the leadership meeting tomorrow."
Brennan wants targeted fixes. $280K. Your General Counsel just told you a class action attorney has been advertising on LinkedIn, tagging Beacon Hill Capital employees in posts about Massachusetts pay equity rights. Three more employees have filed MA Frances Perkins Workplace Equity Act pay scale requests this week.
The CEO is in the room. She'll back whoever makes the stronger case.
"The full audit will cost us $2.1 million in remediation, phased over twelve months. Here's what it buys: a defensible position if the MA AGO investigates our Massachusetts pay data report. A response to the class action attorney circling our employees. And a story we can tell candidates.we fixed it before anyone made us."
Brennan "I don't love the number. But I like the alternative less. The last company the MA AGO went after settled for $15 million."
The CEO nods. "Do the audit. Under privilege. And Priya. I want a timeline on my desk by Friday."
A privileged pay equity audit, conducted under attorney-client privilege with outside counsel, lets you find and fix gaps before they become lawsuits. The key: the audit itself may be protected from discovery. Individual complaint-by-complaint fixes are not.
"Two tracks. Track one: resolve Lauren's case now. Market adjustment, back pay differential, done. Track two: commission a pay equity analysis over Q2. Full remediation starts next comp cycle."
Brennan "When you say 'pay equity analysis'.does that create documents that a plaintiff's attorney can subpoena?"
You "If we run it through outside counsel, it's privileged."
Brennan "Then run it through outside counsel. And make sure Lauren signs something."
Lauren accepts the adjustment. She doesn't sign a release.her lawyer tells her not to. The analysis reveals 11 more employees with similar gaps. You're back in Brennan's office in six months with a bigger number.
Running the pay equity analysis through outside counsel creates attorney-client privilege. meaning the analysis itself may be protected from discovery in litigation. This is smart legal strategy. But privilege protects the document, not the underlying facts. When the analysis reveals 11 more gaps, those employees still have the same rights Lauren exercised under Massachusetts’s Equal Pay Act. Privilege buys time and strategic control. it doesn’t eliminate the obligation to remediate.
"This is the right approach. We handle the squeaky wheels. We don't go looking for problems."
Narrator Six weeks later, Lauren's attorney files a complaint with the Massachusetts State Department of Labor and the MA Executive Office of Labor and Workforce Development. The complaint doesn't just cover Lauren. It names 11 other women in the Boston office, all at L4 or L5, all paid below male comparators.
"Please be advised that our clients, twelve current and former employees of Beacon Hill Capital's Boston office, have filed a complaint with the Massachusetts State Department of Labor and the MA Executive Office of Labor and Workforce Development alleging systemic violations of Massachusetts Labor Code Section 1197.5 (Equal Pay Act). We are also evaluating claims under MA Frances Perkins Workplace Equity Act for failure to maintain compliant pay scales."
The complaint-by-complaint approach lasted six weeks.
A MA AGO complaint naming 12 employees transforms an individual pay dispute into a systemic discrimination claim. Under Massachusetts’s Equal Pay Act (§1197.5), each employee can recover the full pay differential for up to four years, plus interest, plus attorney’s fees. The complaint also opens the door to MA Frances Perkins Workplace Equity Act enforcement. failure to maintain compliant pay scales is a separate violation. “We handle squeaky wheels” is not a compensation strategy. it’s a litigation accelerator.
Read Beacon Hill Capital's draft Compensation Policy. Click on any section that contains a compliance violation.
Some sections are compliant. Click Submit when you've flagged all the problems you can find.
Beacon Hill Capital Inc.
Compensation Policy 2026. Draft for Review
Section 2. Job Posting Policy.
"Pay scales will be included in job postings for positions physically located in Massachusetts. Fully-remote roles, roles where the hiring manager has not finalised the band, and confidential executive searches may use 'competitive compensation' language at the recruiter's discretion."
Section 3. Workforce Demographics
Total headcount: 2,200 across 5 states. Gender split: 61% male, 39% female. Breakdown by level, function, and location available in the HRIS.
Section 4. Pay Setting Methodology
"Compensation is determined by market benchmarking, individual negotiation, and prior salary history where available and legally permitted."
Section 5. Pay Scale Disclosure
"Pay scales will be provided to Massachusetts employees upon written request to their HRBP. Requests will be processed within 30 business days."
Section 6. Pay Data Reporting
Beacon Hill Capital maintains records of pay scales used in postings, as required for compliance audits under MA Frances Perkins Workplace Equity Act. Records are retained for the duration of the role plus three years.
Section 8. Pay Discussion Policy
"Employees may discuss their own compensation with colleagues. However, sharing compensation data of other employees obtained through HR system access or managerial authority is prohibited and may result in disciplinary action."
0 section(s) flagged
MA Frances Perkins Workplace Equity Act. State-wide pay range in every posting (4+ employees). Reaches roles performable in NY or supervised from NY.
MA EEO-1 Wage Data Reporting. Annual filing for 100+ employee employers, due February 1, published on the public Massachusetts Pay Equity Register.
MA Equal Pay Act. Equal pay for substantially similar work. Extends to all protected classes, not just sex.
MA Anti-Retaliation (c.149 §148A). Salary history ban. Cannot ask. Cannot use, even if volunteered.
MA Anti-Retaliation (c.149 §148A). Anti-retaliation. Employees may discuss wages and exercise rights without reprisal.
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