New Massachusetts Law Affects Recruiting and Hiring Practices

Massachusetts recently signed into law An Act to Establish Pay Equity, S.2119, which takes effect on July 1, 2018. The new law prevents wage discrimination based on gender. The law includes several noteworthy changes related to the employment process, but perhaps the most significant is that it prohibits employers from requiring applicants to provide their salary history before receiving a formal job offer.

The intention is to close the salary gap. Women have historically been paid less than men, and once a salary gap is established, typically early in a woman's career, it's difficult to close that gap.

Although the law only applies to Massachusetts employers and employees, it is expected to have far-reaching implications. As with other changes related to hiring, large companies will likely amend their policies to ensure they do not inadvertently violate the law. In addition, given the national attention this law has garnered, these companies will want to be viewed as non-discriminatory—or better yet, pro-equality.

Because large companies will adopt new policies and procedures, job candidates will expect small and midsize employers to follow suit. Like other human resource trends, the changes as a result of this law, and other state and federal legislation that may follow, will eventually impact your lab or pathology practice. It is therefore prudent to familiarize yourself with what is happening in Massachusetts, and even get ahead of the curve and make necessary adjustments to your hiring processes.

Here are some highlights of the provisions in the new Massachusetts Law:

• "Comparable work" is defined to mean work that is "substantially similar," performed under similar conditions and "requires substantially similar skill, effort and responsibility."
• Employers can't discriminate based on gender when paying wages for comparable work unless the difference in wages is based on certain facts such as seniority, level of training or a bona fide merit system.
• Employers can't a) ban employees from talking about their salaries, b) screen job applicants based on salary history, such as by asking applicant to reveal salary history, c) ask prior or current employers for salary history of applicants until a formal job offer is made and the prospective employee consents.
• Employers who violate the law can be liable for unpaid wages, liquidated damages and attorney's fees.
• Employers get credit for evaluating their own practices and showing successful efforts to get rid of any gender based differences in pay for comparable work.
• Employers must post notice of this law at their workplace.

Takeaway: Labs and pathology practices need to consider how laws such as Massachusetts' pay equity law affect what job applicants are asked during the interviewing process.