The amended Massachusetts Equal Pay Act (MEPA) goes into effect July 1, 2018. The purpose of the new law is to ensure that all workers in Massachusetts are paid equally for comparable work performed and to provide the opportunity to earn competitive salaries in the workplace. This new law imposes strict equal pay obligations on employers and limits certain information employers can request regarding the salary history of job applicants and generally prohibits employers from restricting employees from discussing their salaries.

Does MEPA Apply to My Cannabis Business?
MEPA applies to all employers in Massachusetts, with some very limited exceptions, and also applies to employers outside of Massachusetts that have employees with a primary workplace in Massachusetts. Cannabis employers should take steps now to ensure their forms and policies comply with the MEPA requirements as well as undertake a self-evaluation of their pay practices, so that the employer can avail itself of the affirmative defense under MEPA.

How Does MEPA Affect My Cannabis Business?
Specifically, MEPA prohibits employers from paying different wages to employees of different genders who perform “comparable work,” defined as work that “requires substantially similar skill, effort, and responsibility, and is performed under similar working conditions.” In the cannabis industry, this could range from crop managers to horticulturalists, chemists, transportation specialists and other roles. Wages are defined broadly to be “all forms of remuneration for employment” and include hourly wages, salary, bonuses, commissions, vacation, health insurance, and other fringe benefits. MEPA does not define “substantially similar,” “skill,” “effort,” or “responsibility.” However, the Massachusetts Attorney General issued a guide in the form of Frequently Asked Questions, which provides further information concerning MEPA. Cannabis business owners should take care to read these FAQs thoroughly.

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