Massachusetts Begins Phase Out of Premium Payments for New Year's Day, Columbus Day, and Veterans Day

Under Massachusetts law, employers are required to make premium payments to certain employees that work in certain types of retail establishments.

In 2018, the Massachusetts legislature changed this requirement dramatically by gradually phasing out the premium requirements entirely for all state holidays except for New Year’s Day, Columbus Day, and Veteran’s Day. The premium pay requirements for holidays are phased out entirely as of January 1, 2021.

On January 24, 2021, the Massachusetts legislature further restricted premium pay requirements for holidays by passing a bill that phases out those requirements for New Year’s Day, Columbus Day, and Veteran’s Day, with those requirements being eliminated in their entirety as of January 1, 2023.

Currently, a number of retail employees are entitled to premium pay for a number of holidays. As of January 1, 2023, those employees will no longer be entitled to those payments.