On June 28, 2018, Massachusetts Gov. Charlie Baker signed Bill H4640 into law. This bill will gradually increase the statewide minimum wage rate to $15 per hour. It will also gradually increase the minimum wage rate for tipped employees to $6.75 per hour. Massachusetts Wage and Hour Law becomes effective on January 1, 2020. The following table provides a summary of the key changes you should be aware of heading into the new year.

Current Law Effective January 1, 2020
Minimum Wage
Currently $12.00 per hour
Minimum Wage
Increases to $12.75 per hour
Sunday/Holiday Premium Pay Requirement

Sundays – 1.4 multiplier

New Year’s Day, Columbus Day, Veteran’s Day- 1.5 multiplier

 Memorial Day, Independence Day, Labor Day- 1.4 multiplier

Sunday/Holiday Premium Pay Requirement

Sundays 1.3 multiplier

New Year’s Day, Columbus Day, Veteran’s Day1.5 multiplier (until further notice) *

Memorial Day, Independence Day, Labor Day1.3 multiplier

Tipped Wage
Currently $4.35 per hour.

Tipped employee’s hourly wage ($4.35) plus average hourly tips received for each shift worked must add up to the minimum wage or employer is required to pay additional compensation to make up the difference.

Tipped Wage
Increases to $4.95 per hour.

 Tipped employee’s hourly wage ($4.95) plus average hourly tips received for each shift worked must add up to the minimum wage or employer is required to pay additional compensation to make up the difference.

*For the holidays of New Year’s Day, Veteran’s Day and Columbus Day, the required premium pay will remain at time and a half (1.5) until further notice. Due to a drafting error in the legislation, provisions necessary to phase out the Retail Premium Pay requirement for these holidays were inadvertently omitted from the final law.

Minimum Wage Rate Increases

The new law phases in minimum wage increases over a five year period, beginning in 2019. Over this five-year period, the minimum wage rates are as follows:

If a tipped employee’s tips and service rate yields a wage rate lower than the minimum wage rate, the new law also requires employers to pay the difference to the employee at the completion of each shift worked by the employee.