Florida Minimum Wage Rises in September; Massachusetts Pay Transparency Law Takes Effect in October.

As we enter September 2025, two state-level labor measures are taking effect in quick succession: Florida’s minimum wage is increasing again, and Massachusetts’ Pay Range Transparency Act is set to take effect. These new rules will directly impact employers’ wage payments, recruiting disclosures, and internal compliance systems.

For guidance on wage-and-hour compliance or solutions tailored to your business, please contact Richard Liu, Managing Partner at ILS, at contact@consultils.com.

Florida: Minimum Wage to Increase (Effective September 30, 2025)

2025 Minimum Wage Levels

• Regular Employees: The minimum wage will rise from $13.00 per hour to $14.00 per hour.

• Tipped Employees: The minimum wage will increase from $9.98 per hour to $10.98 per hour.

This adjustment stems from the state constitutional amendment approved by voters, which mandates a $1.00 increase each year beginning in 2021 until the statutory cap of $15.00 per hour is reached in 2026. For tipped employees, employers may continue to apply a $3.02 tip credit, meaning their minimum wage will gradually increase until it reaches $11.98 per hour in 2026.

The next round of Florida minimum wage adjustments will be announced on September 30, 2027, and will take effect on January 1, 2028.

（Table 1： Current Minimum Wage Increase Schedule）

Implications for Employers

• Rising Labor Costs: Overall payroll expenses will increase, especially for industries that rely heavily on lower-wage and tipped employees such as retail, hospitality, and food service.

• Pay Structure Adjustments: To maintain internal equity, employers will need to reassess salary structures across positions and levels to prevent wage compression or “pay inversion.”

• Heightened Compliance and Legal Risks: Payroll systems, wage statements, and budgets must be thoroughly updated. Inadequate implementation could trigger labor inspections or employment litigation.

Recommended Employer Actions

• Budgeting and Operational Optimization: Incorporate the wage increase into annual budgets, adjust scheduling, or introduce automation tools to offset rising labor costs.

• Policy and Training Updates: Revise compensation policies and employee handbooks to ensure transparency, and provide training for HR and payroll staff to avoid miscalculations.

• Seek Professional Compliance Support: Employers are encouraged to consult with experienced labor and employment counsel to obtain tailored guidance on minimum wage, tip credits, and workforce policies, thereby reducing potential legal exposure.

  
  
  
  

Massachusetts: Pay Range Transparency Act (Effective October 29, 2025)

Effective October 29, 2025, the Massachusetts Pay Range Transparency Act will come into force. The Act requires covered employers to disclose wage ranges in job postings for certain positions, and to provide the same information upon request by job applicants or current employees.

Key Provisions of the new Act:

Covered Employers

The Act applies to private and public employers with 25 or more employees whose primary work location is in Massachusetts. When calculating employee headcount, employers must include full-time, part-time, seasonal, and remote workers, based on an annual average.

Positions Subject to Disclosure Requirements

All job postings or position announcements in Massachusetts—including those distributed through third parties—must include the applicable pay range. Certain remote roles are also covered if they are connected to Massachusetts or can be performed by employees located in the state.

Illustrative Scenarios：

• Out-of-State Company, Remote Role in Massachusetts

A New York–based technology company posts an opening for a software engineer, specifying that the position may be performed remotely anywhere in the United States. Even if the company has no presence in Massachusetts, if the role can be performed by a Massachusetts resident, the posting must disclose the pay range.

• Roles Serving Massachusetts Clients

A customer support specialist works remotely from another state but primarily services clients located in Massachusetts. This position falls under the disclosure requirement.

• Employees Required to Travel to Massachusetts

A marketing manager works remotely but is expected to attend events or meetings in Massachusetts. The job posting must include pay range information.

• Open to Massachusetts Applicants

A job advertisement states “Massachusetts candidates welcome” or “remote role available in Massachusetts.” Such postings must include the applicable pay range.

Definition of “Pay Range”

Under the Act, a “pay range” refers to the minimum and maximum base wage or hourly rate that an employer reasonably expects to offer when hiring, promoting, or transferring an employee. If compensation is based on commission or piece-rate pay, the employer must specify the expected range of earnings in the job posting.

Disclosure Scenarios

Beyond job advertisements, employers are also required to provide pay range information in the following situations:

• Upon request by any job applicant;

• When an employee is offered a promotion or transfer;

• When a current employee makes an inquiry regarding the pay range for their position.

Reporting Obligations

Only employers that are required to submit Equal Employment Opportunity (EEO) reports to the U.S. Equal Employment Opportunity Commission (EEOC) must also provide pay data reporting. These include:

• EEO-1: Generally applicable to larger private-sector employers (typically those with ≥100 employees, or federal contractors with ≥50 employees).

• EEO-3: Applicable to labor unions and labor organizations.

• EEO-4: Applicable to state and local government employers.

• EEO-5: Applicable to public elementary and secondary school systems.

Covered employers must file these EEO reports with the federal government in accordance with the prescribed reporting schedule:

(Table 2: EEO Report Submission Timeline)

Employers outside the above categories—such as private-sector businesses with fewer than 100 employees—are not required to submit additional pay data reports.

Employee Protections Under the Act

The Act prohibits employers from retaliating against employees or job applicants who exercise their right to pay transparency. Protected activities include:

• Requesting disclosure of a pay range during the hiring or promotion process;

• Exercising statutory rights, such as filing a complaint with the employer or with the Massachusetts Attorney General’s Office;

• Participating in legal proceedings, including providing testimony in related litigation.

Importantly, the law does not create a private right of action for individuals. Enforcement authority rests with the Massachusetts Attorney General’s Office, which may investigate complaints and impose civil penalties for violations. Fines may reach up to $25,000 per violation.

Through October 29, 2027, covered employers who receive a corrective notice from the Attorney General and cure the violation within two business days will be exempt from penalties.

Implications for Employers

• Greater Transparency in Hiring and Employment Practices: Employers must disclose reasonable pay ranges in job postings, promotions, and transfers. Compliance also extends to postings on third-party platforms, adding complexity and cost to recruitment management.

• Pressure on Compensation Management and Internal Equity: Disclosure obligations require employers to systematically evaluate job value and establish defensible pay ranges. Current employees may request salary information, and any perceived discrepancies could trigger challenges or negotiations.

• Heightened Compliance and Legal Risks: Failure to disclose, or disclosing inaccurate ranges, may be deemed violations subject to fines of up to $25,000 per instance. Retaliation against employees who exercise their rights carries additional legal exposure.

• Impact on Corporate Reputation and Employer Branding: Compliance can enhance transparency and build trust with applicants and employees. Conversely, violations or complaints can damage employer reputation, undermining talent acquisition and retention efforts.

Recommended Employer Actions

To ensure compliance, employers should take the following actions as soon as possible:

• Standardize Recruitment and Pay Disclosure

  Use consistent job posting templates that clearly state pay ranges, avoiding vague terms such as “negotiable.”

  Review postings distributed by third-party recruiters to ensure alignment with the company’s disclosure standards.

  
  

• Strengthen Internal Policies and Procedures

  Establish written processes outlining how to respond to salary information requests from applicants and employees, while keeping appropriate records.

  Update employee handbooks and internal policies to include transparency requirements and anti-retaliation provisions.

  
  

• Conduct Targeted Training and Oversight

  Provide training for HR teams, hiring managers, and supervisors on setting defensible pay ranges, responding to salary inquiries, and adhering to anti-retaliation obligations.

  Implement accountability mechanisms to promptly correct non-compliance or retaliatory practices.

  
  

• Perform Regular Compliance Reviews and Seek Legal Counsel

  Incorporate pay transparency obligations into annual compliance audits to identify and remedy gaps.

  Consult with experienced labor and employment counsel as needed to ensure disclosure practices, compensation structures, and complaint-handling protocols meet legal requirements.

With new regulations taking effect in both Florida and Massachusetts, employers must look beyond immediate compliance with minimum wage and pay transparency requirements. These changes should be integrated into broader human resources and compliance strategies. By planning ahead and adapting policies proactively, employers can reduce risk, maintain competitiveness, and build stronger trust with their workforce.

For guidance on wage-and-hour compliance or solutions tailored to your business, please contact Richard Liu, Managing Partner at ILS, at contact@consultils.com.

Disclaimer: The materials provided on this website are for general informational purposes only and do not, and are not intended to, constitute legal advice. You should not act or refrain from acting based on any information provided here. Please consult with your own legal counsel regarding your specific situation and legal questions.

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Richard Liu, Esq. is the Managing Counsel of ILS. He serves clients as a management-side defense lawyer specializing in employment and business litigation. Richard is also an expert on litigation prevention and compliance. He regularly advises Fortune 500 companies and startups on employment, labor, and commercial matters.

Email: contact@consultils.com | Phone: 626-344-8949