Massachusetts minimum wage update

  • Effective January 1, 2021, the state minimum wage is $13.50 per hour. The minimum base wage or service rate for tipped employees who make more than $20.00 per month in tips will increase to $5.55 per hour effective January 1, 2021.
  • All tips must be retained by the employee or distributed through a valid tip-pool in accordance with state law.
  • Tipped employees must earn at least the state minimum wage of $13.50 per hour between the service rate and tips received. To determine if an employee’s wages meet this requirement, the employer must calculate the difference between the service rate and earned tipsat the end of every shift worked by the employee. Any deficit between the state minimum wage and the service rate plus tips must be made up by the employer.
  • Effective January 1, 2021, premium pay for employees working on Sundays and the following federal holidays will be reduced from 1.3 times regular rate of pay to 1.2 times regular rate of pay:
    • Memorial Day;
    • Juneteenth;
    • Independence Day; and
    • Labor Day.
Megan Butz

By Megan Butz
General Counsel, HR Compliance, Checkwriters
Megan joined Checkwriters in 2020 and is responsible for reviewing, revising, and implementing internal policies of the company, advising on human resource, employment, and labor matters, and monitoring and publishing state and federal legal updates to the Checkwriters News and Compliance Center for distribution to thousands of clients around the country. Before joining Checkwriters, Megan served as a judicial law clerk for the justices of the Massachusetts Probate and Family Court performing legal research and writing, followed by private practice in Cape Cod.

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