A Massachusetts law set to take effect next year requiring some employers to disclose salary ranges when posting job openings may have collateral repercussions in Rhode Island, according to some observers.
The law, which goes into effect July 31, 2025, applies to employers with 25 or more employees in Massachusetts, and it comes after Rhode Island’s most recent pay equity law went into effect last year that requires employers to provide wage information to applicants when requested and prohibits them from asking applicants about their wage history.
It’s not clear exactly how the Massachusetts law will apply to Rhode Island companies that do business in the Bay State because the language in the law is fairly broad, says Francesco DeLuca, director of legislative affairs for Rhode Island Society for Human Resource Management.
One thing is more certain: there will be an increased focus on wage transparency that will likely spill into Rhode Island.
“Employers will probably have a microscope on them,” said Pamela Thornton, director of strategic human resources for the Employers Association of the NorthEast.
Michael Yelnosky, a professor at Roger Williams University School of Law, agrees, noting that policies such as these often have ripple effects on neighboring states.
“I think it will have an impact,” Yelnosky said.
Already, Thornton says she had heard from several businesses in Massachusetts, Rhode Island and Connecticut that are concerned they haven’t done the work needed to provide information about their pay practices in the wake of new pay equity laws.
Thornton and Yelnosky say many employers haven’t conducted wage audits, but they should so they can be prepared to answer questions about how salaries are determined.
DeLuca says both Massachusetts and Rhode Island are early adopters of wage transparency laws – only 11 states have policies in place. But it's unclear whether there will be an effort in the R.I. General Assembly in the next session to match Massachusetts' salary posting requirement.
Rep. Susan R. Donovan, D-Bristol, who sponsored the House version of Rhode Island’s most recent wage transparency law, says she has not heard any negative feedback from businesses on the policy since it went into effect.
And she would be open to sponsoring a more stringent bill like Massachusetts’ policy if it were determined there was a need. Sen. Frank A. Ciccone III, D-Providence, who chairs the Senate Labor Committee, also said he was open to backing a bill to match Massachusetts, although he doesn’t see Massachusetts’ new law having any effect on Rhode Island employers.
Indeed, some Rhode Island businesses don’t seem overly concerned by Massachusetts' action.
Michael Blazek, spokesperson for the Greater Providence Chamber of Commerce, says the organization has not “had any direct comment” from its members on Massachusetts law so far.
And Rick Simone, managing director of the R.I. Small Business Coalition, says employers that he has spoken with had not heard of the law and the community has little information about it to tell if there will be a need for Rhode Island businesses to post salary ranges for job openings to compete for talent.
Publicizing salary ranges in help wanted ads can be a thorny issue for businesses.
Observers say including wage ranges may be good practice for employers who offer competitive pay since it could help them attract top talent. On the other hand, it might attract applicants motivated solely by money and shut out employers that offer other benefits besides financial compensation.
It could make it difficult for employers to negotiate salaries based on the experience of an applicant. Also, making wage ranges public could upset existing employees who feel they should be paid more, Yelnosky says. At the same time, wage transparency laws are meant to show what everyone earns to prevent discrimination.
“The whole notion of wage transparency can be complicated,” Yelnosky said.
Correction: An earlier version of this story gave an incorrection job title for Michael Yelnosky. He is a law professor at Roger Williams University School of Law.
