Employment Practices Liability Insurance in Massachusetts

Massachusetts at a glance

Governing statute

MA General Laws Chapter 151B

Applies to employers with 6 or more employees, below the federal Title VII threshold.

Enforcement agency

Massachusetts Commission Against Discrimination

MCAD filing is generally a required first step before a court claim.

Pay equity law

MA Equal Pay Act

Restricts salary history inquiries and requires equal pay for comparable work.

Non-compete statute

MA Noncompetition Agreement Act

Imposes notice, consideration, and duration limits on non-compete agreements.

Chapter 151B's lower employee threshold

Massachusetts General Laws Chapter 151B is the state's primary anti-discrimination statute, and it generally applies to employers with six or more employees, a notably lower bar than the 15-employee threshold under federal Title VII. That gap matters for small Massachusetts businesses — a company with eight employees, for example, is fully subject to Chapter 151B even though it would not meet the federal standard.

Chapter 151B also has its own definitions and remedies that differ from federal law in some respects, so a claim analyzed only under a federal lens can miss exposure that exists under Massachusetts law.

The MCAD complaint process

Employees generally must first file a complaint with the Massachusetts Commission Against Discrimination (MCAD) before pursuing a Chapter 151B claim in court, and MCAD investigates, may hold a probable cause hearing, and can pursue conciliation before a case proceeds further. If MCAD finds probable cause and the matter isn't resolved, the employee can request removal to state court or continue through MCAD's own administrative hearing process.

Because the MCAD filing is generally a required first step, Massachusetts employers usually have some visibility into a claim's early stages, which can be an opportunity to resolve issues before they escalate to litigation.

Massachusetts-specific exposure notes

Massachusetts has a strong pay equity law that restricts salary history inquiries and requires equal pay for comparable work, and pay-related claims are a growing area of exposure for employers who haven't reviewed their compensation practices. Massachusetts also enforces one of the more restrictive non-compete statutes in the country, the Massachusetts Noncompetition Agreement Act, which imposes specific notice, consideration, and duration requirements that can turn a poorly drafted agreement into its own source of litigation.

What EPLI covers and staying defensible

Employment practices liability insurance typically covers defense costs and covered damages for discrimination, harassment, wrongful termination, and retaliation claims, subject to the policy's terms. Massachusetts employers can support a stronger MCAD defense by documenting the business reasons behind hiring, pay, and termination decisions, reviewing non-compete agreements for compliance with the Noncompetition Agreement Act, and conducting periodic pay equity reviews.

Who we write this for in Massachusetts

Employment practices liability FAQs for Massachusetts