Massachusetts New Business Laws 2025

Major regulatory changes are reshaping the business landscape in North Central Massachusetts as we begin 2025. Business owners need to navigate updates to employee benefits programs, including modifications to Paid Family and Medical Leave (PFML), Unemployment Insurance (UI), and Workers’ Compensation. The new Act Relative to Salary Range Transparency introduces additional compliance requirements, while the latest phase of the 2023 Massachusetts Tax Cuts Legislation takes effect. Meanwhile, the federal Department of the Treasury has postponed the implementation of the Corporate Transparency Act (CTA), originally scheduled for January 1, 2025.

The following is for informational purposes only. If you are in need of legal advice, please contact a licensed legal professional in your area.

Paid Family Medical Leave (PFML):

• Maximum weekly benefits under PFML are increased from $1,149.90 to $1,170.64 for 2025.
• Contribution rates remain unchanged:
  • Contribution rates for employers with 25 or more covered individuals remain unchanged at 0.88 percent of eligible employee wages for 2025, with .18 percent for family leave and .70 percent going to medical leave.
  • Contribution rates at employers with fewer than 25 covered individuals remain unchanged at 0.46 percent for 2025 with .18 percent for family leave and .28 percent going to medical leave.
• State Resources:
  • PFML workforce notifications and rate sheets for Massachusetts employers | Mass.gov
  • PFML Employee Toolkit

Unemployment Insurance:

• The Massachusetts Department of Unemployment Assistance (DUA) is continuing with its modernization of the unemployment insurance system. The project, which was launched in 2023, is expected to launch a new claimant facing portal that will be mobile-friendly and accessible in English and Spanish at some point in 2025.
• Employers are projected to see an increase as the UI system rate schedule is projected to move from C to D in January of 2025.
• Additional Resources:
  • State website: Massachusetts Unemployment Insurance Modernization
  • NFIB article: Unemployment Insurance Saga Continues

Workers’ Compensation:

• The Workers’ Compensation Rating and Inspection Bureau of Massachusetts (WCRIBMA) submitted a Rate Filing to the Division of Insurance on behalf of its members recommending an 7.1% increase in average rates for industrial classes and a 3.7% decrease for F-Classes. The WCRIBMA filed no change to expense constants. The proposed effective date of this filing is July 1, 2025.
• Additional Resources:
  • WCRIBMA Website
  • WCRIBMA Filing

An Act Relative to Salary Range Transparency:

• Pay Range Disclosure: The provisions below will apply to employers with 25 or more employees beginning on October 29, 2025.
  • Employers will need to include the pay range for each job posting, whether it is made directly by them or through a third party.
  • Employers must provide the pay range for a particular and specific employment position to an employee who is offered a promotion a transfer to a position with new responsibilities
  • Employers must provide the pay range to applicants and current employees holding the position upon request.
  • It is unlawful for an employer to discharge, retaliate, or discriminate against an employee or applicant exercising their right to inquire about compensation details.
• Filing Wage Data: Starting in February 1, 2025, Massachusetts employers with 100 or more employees will need to disclose pay ranges in job postings and submit detailed wage data to the state, leveraging existing federal reporting standards from the Equal Employment Opportunity Commission (EEOC)
  • Following the February 1, 2025 deadline, subsequent filings will be due annually or every other year, depending on the type of report required of the employer.
  • The Commonwealth will then publish aggregated wage and workforce data by industry on the Department of Labor and Workforce Development’s website by July 1 of each year.
• State Resources:
  • Chapter 141: An Act Relative to Salary Range Transparency
  • Covered employers; pay range disclosures
  • Massachusetts law about wages

2023 Massachusetts Tax Cuts Legislation:

• Change affecting only corporate excise taxpayers: single sales factor apportionment
  • Starting January 1, 2025, all financial institutions and business corporations doing business in multiple states will apportion their income to Massachusetts using only the sales factor, instead of based on their share of sales, payroll, and property located in Massachusetts as required under current law. These financial institutions and business corporations will apportion their income to Massachusetts using Schedule F.
• State Resource: 2023 Massachusetts Tax Cuts Legislation | Mass.gov

The Corporate Transparency Act: Enacted in 2021, the CTA is intended to help prevent and combat money laundering, terrorist financing, corruption, and tax fraud.

• The CTA establishes a beneficial ownership reporting requirement for corporations, limited liability companies, and other similar entities formed or registered to do business in the United States. Under the CTA, beneficial ownership reports must be filed with the Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of Treasury.
• Prior to a December order, small businesses meeting certain criteria would have had to file reports by January 1, 2025 or risk facing fines and criminal penalties.
• Following an injunction from a Texas court back on December 3rd, implementation of CTA’s beneficial ownership reporting requirements were placed on hold. A decision by a panel of the U.S. Fifth circuit Court of Appeals on Dec. 23rd dissolved the preliminary injunction, only to have the preliminary injunction essentially reinstated by a the U.S. Fifth Circuit Court of Appeals three days later on December 26th.
• Until the proceedings are concluded, reporting companies are NOT currently required to file their beneficial ownership information with FinCEN and are NOT subject to liability if they fail to do so while the order remains in force.
• In an alert on their website, FinCEN goes on to say that reporting companies may continue to voluntarily submit beneficial ownership information reports.
• Additional Resources:
  • U.S. Chamber Article: What Every Small Business Needs to Know About the Corporate Transparency Act
  • FinCEN Beneficial Ownership Information website: https://fincen.gov/boi

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