MASSCREATIVE SUPPORTS LEGISLATION PROMOTING WAGE TRANSPARENCY
Written by Emily Ruddock, Executive Director of MASSCreative
On July 24, 2024, Gov. Healey signed H.4890, An Act relative to salary range transparency into law after the Legislature passed the bill earlier that same day. At MASSCreative, we celebrate this significant legislative achievement as a crucial step towards fostering equity, diversity, and transparency in the arts and culture sector. This new law, which mandates salary range disclosures alongside job openings for employers with 25 or more employees, is poised to transform the job market by creating a fairer and more inclusive labor market.
KEY PROVISIONS OF THE LAW
1. FOR ORGANIZATIONS WITH 25 OR MORE EMPLOYEES:
Employers must disclose the salary range or hourly wage range for any position advertised.
Employers are required to provide the pay range for the new position when offering promotions or transfers.
Employees have the right to request the pay range for their current position, and employers must comply.
2. FOR ORGANIZATIONS WITH 100 OR MORE EMPLOYEES:
These employers must file annual Equal Employment Opportunity (EEO) wage data reports with the state, detailing workforce demographics and pay data categorized by race, ethnicity, gender, sex, and job category. The aggregate data will be published by the Massachusetts Department of Labor, although individual reports will remain confidential.
3. SPECIFIC REQUIREMENTS FOR NONPROFITS:
Nonprofit organizations are not exempt from these requirements. Nonprofits with 25 or more employees must include salary ranges in job postings and provide pay ranges for promotions and transfers. Additionally, nonprofits with 100 or more employees must file EEO wage data reports.
4. EFFECTIVE DATE:
The law will come into effect six months after it is signed by Gov. Healey, giving employers ample time to comply with the new requirements.
MASSCREATIVE SUPPORTS H.4890
At MASSCreative, we believe that pay transparency is foundational to achieving equity. The arts and culture sector often faces substantial pay disparities and a lack of transparent compensation practices. This legislation ensures that job candidates have equal access to salary information, which is critical for eliminating unfair wage practices and promoting a more equitable job market.
The arts and culture sector thrives on diversity, drawing strength from a rich array of perspectives and experiences. Salary transparency is essential for attracting a broader range of applicants, especially those from underrepresented groups who might otherwise be discouraged by unclear compensation practices. This law will help create a more inclusive hiring process, fostering a diverse and vibrant workforce in the creative industries.
Transparency also builds trust between employers and employees. By openly sharing salary ranges, employers demonstrate a commitment to fairness and accountability. This trust is vital in the creative sector, where collaboration and mutual respect are crucial. Employers who embrace transparency can create a more positive and productive work environment.
SUPPORTING DATA: THE BERKSHIRE/COLUMBIA COUNTIES PAY EQUITY REPORT
Our support for H.4890 is further reinforced by findings from the Berkshire/Columbia Counties Pay Equity report. According to the 2023 report, organizations with transparent pay practices experience a reduction in wage gaps and significant improvements in job satisfaction and employee retention. For instance, the report highlights that companies with clear pay equity policies saw a 20% increase in employee morale and a 15% reduction in turnover rates. Additionally, transparent pay practices were linked to a 25% increase in applications from diverse candidates, demonstrating the critical role of transparency in promoting a diverse and inclusive workforce.
These findings underscore the importance of legislation like H.4890 in advancing fair pay practices across all sectors, including arts and culture. By mandating salary range transparency, this law aligns with our mission at MASSCreative to foster an equitable, diverse, and transparent creative industry. It will help build a fairer job market, attract a broader range of talent, and enhance trust and collaboration within organizations.
The Berkshire/Columbia Counties Pay Equity Coalition will hold their second Pay Equity Summit on September 24, 2024 at the Mahaiwe Performing Arts Center.
MASSCreative is excited about the positive changes that H.4890, the Berkshire/Columbia Counties Pay Equity Coalition, and Mass Cultural Council’s policy requiring all job postings on HireCulture to include salary ranges will bring to the arts and culture sector. This law represents a significant victory for equity and transparency, aligning with our mission to support a fair and inclusive creative industry. We believe that by fostering transparency in compensation, we can help build a more equitable, diverse, and thriving arts community in Massachusetts.
