New Minimum Wage Takes Effect

The first phase of Massachusetts’ new state minimum wage law is now in effect. As of January 1, all employees in the Commonwealth must be paid at least $9 per hour. The minimum wage rate was previously set at $8/hour.

The law also requires increases in the rate paid to tipped employees, and the total amount they earn when tips are added must meet or exceed the state’s minimum rate. That rate will increase to $10/hour on January 1, 2016 and to $11/hour on January 1, 2017. Massachusetts is one of several states that recently increased its minimum wage rate after years without changes.

In Massachusetts, paying employees what they earn and are due is particularly important because of harsh penalties in the state’s Wage Act. Failure to meet a number of requirements — including timely payment of minimum wages, commissions, and other sums that may be due to employees — carries a mandatory triple-damages penalty. Employers who lose suits under the Wage Act must also pay legal fees their workers accrue in the collection process.