In the dynamic landscape of employment regulations, understanding wage and hour laws is paramount for both employers and employees. For businesses operating in Massachusetts, compliance with the state’s specific regulations is crucial to reducing costly liability and retaining employees. The Massachusetts Wage Act is a strict liability statute that mandates courts award treble damages, attorneys’ fees, and costs to employees that can prove violations.
In our last blog post , we discussed the basics of wage and hour laws on a federal level. Now, we’ll delve into the intricacies of Massachusetts wage and hour laws to help both employers and employees navigate the complex terrain.
Minimum Wage Requirements
Massachusetts, in line with its commitment to worker well-being, sets a minimum wage that employers must adhere to. As of January 1, 2023, the minimum wage in the state of Massachusetts is $15 per hour, which is more than double the federal minimum wage at $7.25 per hour. Certain municipalities may have their own rates, so employers must be aware of and comply with the specific minimum wage applicable to their location.
Overtime Pay
In Massachusetts, eligible non-exempt employees are entitled to receive overtime pay for hours worked beyond the standard 40-hour workweek. Overtime compensation is generally set at 1.5 times the regular hourly rate. Employers should be well-versed in the criteria for eligibility and ensure accurate calculations to avoid legal complications. Employees who are categorized as exempt by the employer and earn a salary do not qualify for overtime. However, employees can only be categorized as exempt if they meet certain requirements.
Wage Payment and Frequency
Massachusetts law mandates that employers establish regular pay periods and disburse payments within six days of the end of each pay period. There are serious consequences for employers who do not pay their employees within this time frame, and even if the employer eventually pays the employee, the employer could still face liability. If an employer terminates an employee, the employer must disburse payment for final earnings and any accrued vacation time on the day of termination. These deadlines are also enforced for individuals who can show they were incorrectly misclassified as an independent contractor. Additionally, employers are required to provide employees with a written statement outlining their earnings, deductions, and other pertinent information. Wage payments that are not timely made will expose employers to penalties even when paid just one day late. An employee who is not paid their earned wages within six days of the end of a pay period or on the date of their termination (including all accrued vacation time) will be entitled to automatic treble damages if any of those payments are not made or are made late.
Commissions as Wages
In addition to hourly wages or salaries, the Massachusetts Wage Act also protects employees’ rights to commission payments. Payments that are considered definitely determinable (calculable), due, and payable are considered wages and given the same protections as other forms of earnings. Payments that are discretionary bonuses, however, are not considered wages.
Meal Breaks and Rest Periods
Massachusetts law mandates that employees working more than six hours in a day are entitled to a 30-minute meal break. Employers are not required to pay employees for this break unless work is performed during the break period.
Equal Pay Act
Massachusetts has implemented an Equal Pay Act (EPA) to address wage disparities based on gender. The EPA prohibits employers from paying employees of different genders differently for comparable work. Employers should conduct regular pay equity audits to ensure compliance with this law.
Reporting Pay or “Show Up” Pay
Although there is no federal equivalent, Massachusetts regulations require employers to compensate most employees for reporting pay or “show up” pay. If an eligible employee was scheduled to work for three hours or more but is sent home, the employer is required to compensate them for at least three hours at the minimum wage rate. It’s important to note that this provision does not apply to charitable organizations.
Understanding Massachusetts wage and hour laws is a cornerstone of responsible and ethical employment practices. Greene and Hafer can provide guidance, assess your situation, and help you pursue legal action if necessary. Located in Boston, Massachusetts, Greene and Hafer represents people who have experienced wage and hour violations. Our attorneys have extensive experience in handling wage and hour violation cases. To schedule an appointment with an experienced lawyer, contact our office.