Beginning January 1, 2023, changes to the Massachusetts Minimum Wage Law, retail premium pay, and Massachusetts Paid Family and Medical Leave Law take effect.
Changes to Minimum Wage & Premium Pay
- Minimum wage increased from $14.25 an hour to $15.00 an hour (applies to non-agricultural workers and workers that do not receive tips).
- Minimum wage for tipped employees increased from $6.15 an hour to $6.75 an hour.
- The Retail Premium Pay mandate for Sundays and holidays (Massachusetts Blue Laws) is eliminated.
Changes to Paid Family and Medical Leave (PFML)
- The earnings requirement to be eligible for PFML increased to $6,000 during the last four completed calendar quarters.
- The maximum weekly benefits under PFML increased from $1,084.31 to $1,129.82.
- Employer contribution rates (i.e., the tax rate to fund paid leave benefits under PFML) are reduced as follows:
- Employers with 25 or more covered individuals will now need to pay .63% of eligible employee wages.
- Employers with fewer than 25 covered individuals will see their contribution rate fall to .318%.
While entering the new year, employers are encouraged to review all employee classifications to ensure that employees are classified correctly under the federal Fair Labor Standards Act and Massachusetts Wage and Hour law.
If you have any questions about your organization’s employee classifications, or questions regarding the 2023 changes, please contact a member of our Labor, Employment and Employee Benefits Group.