Massachusetts Minimum Wage and Overtime Laws

The Massachusetts Wage Act  

The Massachusetts Wage Act is a law that requires employers to pay employees all wages they’ve earned on either a weekly or bi-weekly basis. M.G.L ch. 149 §148. This same law also requires employers to pay employees all wages earned by them “on the day of his discharge” if the employee is terminated or laid off. If the employee resigns or quits all wages earned are to be paid by the next pay date or first Saturday after their employment ends. Employers who violate the Massachusetts Wage Act are liable to their employees for triple damages, attorneys’ fees, interest, and costs. M.G.L. ch. 149 §150.

Massachusetts Minimum Wage Law

What is the Massachusetts minimum wage?

The Massachusetts Minimum Fair Wage Law requires all employees engaged in an “occupation” to be paid at least the Massachusetts minimum wage for each hour worked.

The Massachusetts minimum wage in 2022 is $14.25 per hour and will increase annually by $0.75 per hour up to a minimum wage of $15 per hour by January 1, 2023. M.G.L ch. 151 §1.

The minimum wage requirement does not apply to professional service, agricultural and farm work, work by persons being rehabilitated or trained under rehabilitation or training programs in charitable, educational or religious institutions, work by seasonal camp counselors and counselor trainees or work by members of religious orders. M.G.L ch. 151 §2. It also does not include outside sales work regularly performed by outside salesmen who regularly sell a product or products away from their employer's place of business and who do not make daily reports or visits to the office or plant of their employer. M.G.L ch. 151 §2.

Employers who violate the Massachusetts Minimum Fair Wage Law are liable to their employees for triple damages, attorneys’ fees, interest, and costs. M.G.L. ch. 149 §150.

The Massachusetts Minimum Wage Law for Servers and Tipped Employees

What is the Massachusetts minimum wage for servers and tipped employees?

The Massachusetts Minimum Fair Wage Law for tipped employees requires employers to pay tipped employees a tipped minimum wage of at least $6.15 per hour in 2022 for each hour worked, known as a ‘service rate.’ M.G.L ch. 151 §7. This rate will increase annually by $0.60 per hour up to a rate of $6.75 per hour by January 1, 2023.

In addition to the minimum wage for tipped employees, tipped employees must be paid at least the Massachusetts basic minimum wage ($14.25 per hour in 2022) after accounting for tips. M.G.L ch. 151 §7.

Massachusetts law strictly regulates an employer’s ability to pay employees a service rate. Specifically, employers can only pay employees a service rate if they comply with strict notification requirements in writing. M.G.L ch. 151 §7; 454 CMR 27.03(2).

If you are a tipped employee and are paid a service rate, you may be entitled to significant compensation if your employer did not comply with these strict requirements. Employers who violate the Massachusetts Minimum Fair Wage Law for tipped employees are liable to their employees for triple damages, attorneys’ fees, interest, and costs. M.G.L. ch. 149 §150.

Massachusetts Overtime Laws for Tipped and Regular Hourly Employees

The Massachusetts Overtime Act is a law that requires employers to pay most of its employees an overtime premium equal to 1.5 times their regular rate of pay (time and a half) for hours worked over 40 in a workweek. M.G.L. ch. 151 §1A. A number of employees are exempt from this requirement. M.G.L. ch. 151 §1A. This requirement, under some circumstances, even applies to employees who are paid a salary.

Servers and tipped employees are also entitled to overtime, subject to the exemptions listed in M.G.L. ch. 151 §1A. The overtime rate for tipped employees who are entitled to overtime in Massachusetts is one and one half times the Massachusetts basic minimum wage, not the service rate. 454 CMR 27.03(3).

Employers who violate the Massachusetts Overtime Law are liable to their employees for triple damages, attorneys’ fees, interest, and costs. M.G.L. ch. 151 §1B.

Employment attorney Ben Steffans has represented numerous employees across Massachusetts on an individual and class basis in unpaid minimum wage and unpaid overtime claims. If you are a Massachusetts employee in or around Springfield, Lowell, Worcester, Fall River, New Bedford, Pittsfield, or Cape Cod with questions regarding minimum wage and overtime laws, call us today for a free consultation.

ADDITIONAL TOPICS IN MASSACHUSETTS AND FEDERAL WAGE AND HOUR LAWS

Click a topic below to learn more

• Do employers have to pay me for accrued vacation time when my employment ends?

• Do employers have to reimburse mileage?

• Do employers have to pay for travel time?

• Do employers have to pay for training time?

• Do employers have to reimburse employees for uniforms?

• Massachusetts Laws Regarding Tips, Tip Distribution, Tip Pools, and Service Charges

• Are Commissioned Employees Entitled to Minimum Wage and Overtime Under Massachusetts Law?

• Are Commissions Covered by the Massachusetts Wage Act?

• Massachusetts Independent Contractor Law

• Massachusetts Blue Laws – Premium Pay for Sundays and Holidays