MA Minimum Wage Increases and an Update on Paid Leave

By Alexandra A. Mitropoulos   January 2, 2019

WHAT’S NEW?

Minimum Wage and Sunday Time Rate
Beginning on January 1, 2019, the Massachusetts minimum wage will be raised from $11.00 to $12.00, part of a tiered effort that will raise the Commonwealth’s minimum wage to $15.00 by 2023. Similarly, the tipped minimum wage increases from $3.75 to $4.35 on January 1 and will likewise continue to increase yearly until it reaches $6.75 in 2023. Under the new law, retail employees’ Sunday time rate will decrease from time-and-a-half to one and four-tenths the employee’s regular rate. The rate will decrease yearly until it is gradually eliminated in 2023.

The Grand Bargain and Paid Leave
Starting July 1, paid leave programs are set to be funded through a new payroll tax of 0.63 percent, with employers and employees each paying a portion of the cost. Most programs, however, will not begin until 2021. Furthermore, in what will hopefully bring additional clarity to the Paid Leave law, the newly created Department of Family and Medical Leave is expected to publish proposed regulations for comment by March 31, 2019. These regulations are expected to be finalized by July 1, 2019.

 

FOR MORE INFORMATION

For more information or compliance assistance, please contact Peter J. Moser or any other member of the HRW team.

Click here to download this alert as a PDF.

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