Massachusetts has made some important steps to increase the standard of living for its citizens. Below are the stipulations for various minimum wage employees in Massachusetts.
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2020 Minimum Wage in Massachusetts: $12.75 per hour
This means that, in Massachusetts, employers must pay employees at least $12.75 per hour worked. This does not apply to salaried workers.
Tipped: $4.95 per hour
Tipped employees can be paid less than the regular minimum wage rate, with the assumption that they will make up the difference in tips. Employers only have to pay tipped employees $4.95 an hour in Massachusetts. However, if an employee’s hourly wage and their tips do not equal at least $12.75 per hour worked, the employer must pay the difference.
In Massachusetts, a tipped employee is any employee that regularly receives more than $20 in tips per month.
The weekly minimum wage in Massachusetts is $510. This is calculated by taking the minimum wage, $12.75 per hour, and multiplying it by 40, the number of hours worked in a traditional full-time workweek.
The annual minimum wage in Massachusetts is $26,520. This is calculated by taking the weekly minimum wage, $510, and multiplying it by 52, the number of weeks in a year.
Overtime: $19.13 per hour
Overtime pay applies to any hours worked over 40 in a single week, and overtime employees are entitled to one-and-a-half times their regular rate. Since the minimum wage in Massachusetts is $12.75 per hour, the minimum overtime rate is $19.13 per hour.
In previous years, Massachusetts workers earned overtime pay for working on a Sunday. This was expunged.
Massachusetts Minimum Wage Increase News
In June 2018, the Massachusetts governor signed into law a measure that will raise the minimum wage to $15 an hour incrementally until 2023, as well as phasing out overtime pay for Sunday workers.
The proposed schedule for standard minimum wage increases is below:
- 2021: $13.50;
- 2022: $14.25;
- 2023: $15.00;
The law also includes an increase for tipped workers. Here is their wage increase schedule:
- 2021: $5.55;
- 2022: $6.15;
- 2023: $6.75;
The “bargain bill” not only raises the minimum wage, but it also implements guaranteed paid family and medical leave program, as well as establishing a permanent sales tax holiday, and payroll tax.
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