Link Fixed! Minimum Wage Increases to $13.50 Per Hour While Holiday and Sunday Premium Pay for Retail Employees Continues Down The Path To Abolishment

As of January 1, 2021, the minimum wage for regular employees (i.e., non-tipped minimum wage employees) increased to $13.50 per hour.  The minimum wage is scheduled to increase twice more, to $14.25 and $15.00 per hour, on January 1, 2022 and January 1, 2023, respectively.  The minimum wage for tipped employees is currently $4.95, with $.60 increases scheduled for January 1, 2022, and January 1, 2023.      

In addition, retail employers will recall that as part of the “Grand Bargain” that was signed into law by Governor Baker in 2018, the premium pay requirement for retail workers working on Sundays and certain holidays will be gradually eliminated until it is abolished in 2023.  As of January 1, 2021, the premium pay rate for retail employers decreased from 1.3 to 1.2 times an employee’s regular hourly rate.  The premium pay rate will decrease to 1.1 times an employee’s regular hourly rate in 2022, and will be completely abolished as of January 1, 2023. 

The holidays for which retail employees are entitled to premium pay include New Year’s Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Columbus Day after 12:00 P.M., and Veterans Day after 1:00 P.M.

About Brian Casaceli

Brian is an associate in the firm's Labor, Employment and Employee Benefits Group. He focuses his practice on representing employers in federal and state courts in Massachusetts, as well as before the Massachusetts Commission Against Discrimination, and the Equal Employment Opportunity Commission in defense of claims of discrimination, sexual harassment, wrongful termination, breach of contract, and wage payment violations. Brian also has experience in representing employers in wage and hour investigations by the U.S. Department of Labor and the Massachusetts Attorney General. Brian further counsels employers on day to day employer issues, and has experience drafting employer handbooks and other employer policies.
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