Massachusetts Labor Laws

Massachusetts Minimum Wage

The minimum wage in Massachusetts is currently $13.50 per hour, which is significantly higher than the federal minimum wage of $7.25 per hour. When federal and state laws differ, employers are required to pay the higher rate to their employees.

Massachusetts Labor Law Posters

Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters. 

SHOP MASSACHUSETTS POSTERS NOW
SAFEGEAR Protect
Labor Law Posters

History of Massachusetts Labor Laws

The minimum wage requirements under Massachusetts General Law, Chapter 151, Section 1, took effect on January 1, 2021.

Hourly rates have been increasing, reaching $12 on January 1, 2019, and $11 on January 1, 2017.

Following a recent trend among states, Massachusetts has enacted laws to raise the minimum wage to $15 per hour, with both large and small businesses required to comply by the same deadlines.

Employers must pay $13.50 per hour effective January 1, 2021, $14.25 per hour effective January 1, 2022, and $15 per hour effective January 1, 2023.

Employers must ensure that deductions do not cause an employee’s hourly wage to fall below the legal minimum. For instance, an employer can deduct the cost of meals provided to an employee, as long as the employee agrees to the arrangement. However, if the deduction would reduce the employee’s hourly rate below the minimum wage, it is not permitted.

Certain industries can pay student workers less than the minimum wage, at 80% of the minimum wage rate. This requires a waiver from the director of the Department of Labor Standards. Eligible industries include hospitals, laboratories, bona fide educational institutions, and nonprofits.

Municipality Minimum Wage Laws

While businesses must adhere to both federal and state minimum wage laws, no localities in Massachusetts have yet passed legislation to raise the hourly wage above these rates. However, this could change in the future as local governments continue to evaluate wage standards.

Massachusetts Minimum Wage Exemptions

Under Massachusetts law, certain workers are exempt from the minimum wage requirements. These exemptions include:

  • Agricultural workers
  • Members of a religious order
  • Workers undergoing training in specific educational, nonprofit, or religious organizations
  • Outside salespeople

Massachusetts Posting Requirements

In addition to federal postings, several state posters and notices to be displayed in the workplace, such as:

  • Minimum Wage
  • Fair Employment
  • Paid Family and Medical Leave
  • Parental Leave
  • Earned Sick Time
  • Unemployment Insurance
  • Workers' Compensation
  • No Smoking Sign

Tipped Wage in Massachusetts

If an employee earns more than $20 per month in tips, the hourly service rate can be applied to their wages.

As of January 1, 2021, the Massachusetts service rate for tipped employees is $5.55 per hour. This rate increases alongside the regular minimum wage rate. Employers must pay a service rate of $5.55 per hour effective January 1, 2021, $6.15 per hour effective January 1, 2022, and $6.75 per hour effective January 1, 2023.

When calculating wages, ensure that the combined total of average hourly tips and the hourly service rate meets or exceeds the minimum wage. For example, to meet the current minimum wage of $12.75 per hour, a tipped employee’s paycheck must include at least a $5.55 per hour service rate and a $7.95 per hour tip rate.

Managers, supervisors, and owners are prohibited from taking any portion of their employees’ tips.

If a customer’s bill includes tips and service charges, these amounts must be distributed solely to wait staff, service bartenders, or other service employees. In Massachusetts, tip pooling is permitted only for wait staff, service bartenders, and other service employees.

Overtime Wage in Massachusetts

Under Massachusetts General Law, Chapter 151, Section 1A, employees who work more than 40 hours in a workweek must be paid an overtime rate of 1.5 times their regular rate of pay for every hour worked over 40.

When calculating overtime, certain types of payments can be excluded from the regular rate of pay, such as commissions, drawing accounts, bonuses, or other incentive pay based on sales or production.

For employers using the service rate of $4.95 as part of an employee’s hourly wage, it’s important to note that such employees should be paid 1.5 times the basic minimum wage, not the service rate.

In 2018, retail businesses received favorable news with the passage of legislation to gradually reduce the premium pay rate for Sunday and holiday work. This applies to retail establishments operating on Sundays and on Memorial Day, Independence Day, and Labor Day. The reduction schedule is as follows:

  • 2019: 1.4 times regular pay
  • 2020: 1.3 times regular pay
  • 2021: 1.2 times regular pay
  • 2022: 1.1 times regular pay

However, the requirement to pay 1.5 times the regular rate for work on New Year’s Day, Columbus Day before 12 p.m., and Veterans Day before 1 p.m. remains unchanged.

Certain businesses and occupations in Massachusetts are exempt from overtime requirements, similar to federal exemptions. These include:

  • Janitors or caretakers of residential property, who are paid at least $30 per week and provided with living quarters
  • Golf caddies, newsboys, child actors or performers
  • Bona fide executives, administrative or professional employees, or qualified trainees for such positions earning more than $80 per week
  • Outside salespeople or buyers
  • Learners, apprentices, or handicapped persons under a special license
  • Fishermen or those employed in the catching or taking of fish, shellfish, or other aquatic life
  • Switchboard operators in public telephone exchanges
  • Drivers or helpers on trucks regulated by the Interstate Commerce Commission
  • Employees of employers subject to certain provisions of the Interstate Commerce Act or the Railway Labor Act
  • Seasonal businesses operating for no more than 120 days in a year
  • Seamen
  • Employees licensed and regulated under the state’s motor vehicle laws
  • Employees in hotels, motels, motor courts, or similar establishments
  • Gasoline station employees
  • Restaurant employees
  • Garagemen (excluding parking lot attendants)
  • Employees in hospitals, sanatoriums, convalescent or nursing homes, infirmaries, rest homes, or charitable homes for the aged
  • Employees in non-profit schools or colleges
  • Employees in summer camps operated by non-profit charitable corporations
  • Agricultural and farm laborers
  • Employees in amusement parks operating for no more than 150 days in a year

Child Labor Laws in Massachusetts

When employing minors, it’s crucial to adhere to specific time and schedule restrictions.

For 14- and 15-year-old employees:

  • Their workday must end by 7 p.m. and cannot begin before 7 a.m.
  • From July 1 through Labor Day, the workday can extend to 9 p.m.
  • During the school year, they cannot work during school hours, more than three hours on any school day, more than 18 hours in any week, or more than eight hours on any weekend or holiday. An exception allows up to 23 hours per week for school-approved career or experience-building jobs.
  • When school is not in session, they may work up to eight hours per day, 40 hours per week, and six days per week.

For 16- and 17-year-old employees:

  • They cannot start work before 6 a.m.
  • Their workday must end by 10 p.m., but if the employer stops serving customers at 10 p.m., the workday can extend to 10:15 p.m.
  • On non-school nights, they may work until 11:30 p.m., and until midnight if working at a restaurant or racetrack.
  • They cannot work more than nine hours per day, 48 hours per week, or six days per week.

Monitoring these hours is essential to ensure compliance with Massachusetts labor laws.

Employer Recordkeeping Requirements in Massachusetts

In Massachusetts, businesses must adhere to state recordkeeping rules in addition to federal requirements.

Payroll records must include:

  • Employee’s name
  • Address
  • Job/occupation
  • Amount paid each pay period
  • Hours worked (each day and week)

Employers are required to retain these records for three years. Employees have the right to view their own payroll records, but the times and places for viewing must be reasonable.

Massachusetts Labor Law Questions & Answers

In Massachusetts, employers must compensate employees for any earned, unused vacation time upon separation from employment, whether the termination is for cause or not. This is based on an advisory from the Attorney General’s Fair Labor Division on Vacation Policies.

  • Forfeiture Agreements: Employers cannot enter into agreements that require employees to forfeit earned wages, including vacation payments, if they do not provide notice before quitting.
  • Accrual Caps: Employers can set caps on vacation time accrual, meaning employees stop earning additional vacation time after reaching a certain limit until some of the accumulated time is used.
  • “Use It or Lose It” Policies: These policies require employees to use their accumulated vacation time within a certain period or lose it. Employers must provide adequate notice and a reasonable opportunity for employees to use their vacation time to avoid illegal forfeiture of earned wages.

Final Paycheck Reminders

  • Employees who quit must be paid in full on the next regular payday or by the first Saturday after quitting if there is no regular payday.
  • In cases of involuntary termination or layoffs, employees must be paid in full on their last day of work.

Yes, small businesses in Massachusetts must pay the same minimum wage as large businesses. The state does not differentiate based on employer size.

  • 14- and 15-year-olds:
    • During the school year: Cannot work during school hours, more than 3 hours on a school day, more than 18 hours in a week, or more than 8 hours on weekends/holidays.
    • When school is not in session: Cannot work more than 8 hours a day, 40 hours a week, or 6 days a week.
  • 16- and 17-year-olds:
    • Cannot work more than 9 hours a day, 48 hours a week, or 6 days a week.

Yes, Massachusetts law requires that employees who work more than 40 hours in a workweek be paid 1.5 times their regular rate of pay for every hour worked over 40, similar to federal law.

In Massachusetts, businesses generally cannot operate on Sundays without special permission or falling under one of the state’s 55 exemptions. For retail establishments with more than seven employees, there is a requirement to pay a premium rate to nonexempt employees working on Sundays.

The premium pay rate has been decreasing over the years:

  • As of Jan. 1, 2019: 1.4 times the regular pay
  • Currently: 1.3 times the regular pay
  • 2021: 1.2 times the regular pay
  • 2022: 1.1 times the regular pay

After 2022, the premium pay rate for Sunday work will be eliminated.

Massachusetts Labor Law Posters

Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters. 

SHOP MASSACHUSETTS POSTERS NOW
SAFEGEAR Protect
Labor Law Posters