An Act requiring certain employers to establish and maintain a human resources department

194th Legislature (2025-2026) Introduced by Tackey Chan and 1 co-sponsor

Massachusetts employers must establish HR departments: full-time for 25+ workers, part-time for under 25, to ensure compliance with labor laws and improve employee relations.

Accompanied a study order, see H5070

Summary: H 2077 — An Act requiring certain employers to establish and maintain a human resources department

Overview

H 2077 proposes to require employers operating in Massachusetts to establish and maintain a human resources (HR) department, with staffing and duties scaled to firm size. The bill adds a new Section 204 to Chapter 149 and sets an effective date of January 1, 2026. The initiative is aimed at improving compliance with labor laws and enhancing employee relations within workplaces.

Key Provisions

Scope and staffing requirements

Employers with 25 or more employees must maintain a full-time HR department.
Employers with fewer than 25 employees must maintain a part-time HR department.
Each HR department must be staffed with at least one individual.

HR department responsibilities

Employee relations: maintaining morale, engagement, communication, and address concerns.
Benefits administration.
Recruitment and hiring.
Training and development.
Compliance: ensuring adherence to applicable federal, state, and local labor laws.
Recordkeeping.

Definitions

Compliance: compliance with all applicable labor laws, including but not limited to the Fair Labor Standards Act (FLSA), the Massachusetts Equal Pay Act, and the Massachusetts Family and Medical Leave Act (MFLA).
Employee relations: efforts to foster positive workplace culture, manage conflict, and maintain open communication between the employer and employees.

Enforcement

Violations would be subject to complaint to and action by the Fair Labor Division of the Massachusetts Attorney General’s Office.

Effective date

The act would take effect on January 1, 2026.

Who is Affected

Employers operating in Massachusetts with 25+ employees must staff a full-time HR department.

Employers with 1–24 employees (i.e., fewer than 25) must staff a part-time HR department.

HR staff are responsible for a broad range of functions from recruitment to compliance.

Procedural and Timeline Aspects

Introduced: February 27, 2025.

Current status: Referred to the Joint Committee on Labor and Workforce Development on February 27, 2025; Senate concurrence noted on the same day.

Hearing: Scheduled for July 22, 2025, from 10:00 AM to 1:00 PM in Committee Room B-2.

Related bill: HD 3994 (noted as a replacement).

Potential Impacts

Administrative and payroll costs for many employers to establish or expand HR capacity.

Increased consistency in compliance with wage and hour, pay equity, and leave requirements.

Potential changes in workplace culture and processes due to formalized HR structures and ongoing oversight by the AG’s Fair Labor Division.

This summary captures the bill’s core goals, the specific staffing and function requirements for HR departments, enforcement mechanisms, and the timeline for potential implementation.