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Massachusetts 2020 Minimum Wage, Sunday and Premium Pay

Published:  February 28, 2020

Under the “Grand Bargain” bill passed in 2018, changes are expected to be seen over the next few years for employers and employees within Massachusetts. Most notably, the minimum wage will steadily increase over the next few years until 2023, increasing the minimum hourly wage $0.75 per year. Another change to be expected will be Sunday and premium pay for certain holidays. While the minimum wage will increase, Sunday and premium pay in Massachusetts is expected to decrease steadily until 2023, when the additional pay will be completely dissolved.

The minimum wage in January 2020 increased to $12.75 per hour, up from $12 per hour in 2019. With the additional $0.75 increase each year, Massachusetts intends to establish the minimum wage to $15 per hour in 2023. Additionally, the tipped minimum wage increased from $4.35 to $4.95 for employees who make $20 a month, with that increasing to $6.75 by 2023. The agriculture and farm worker wage is set at $8 per hour. It is expected that an estimated 420,600 workers can expect to receive such pay increase.

Although the hourly wage is expected to increase yearly, Sunday and certain holiday/premium pay is expected to be phased out by 2023 in Massachusetts. Many employees are used to receiving 1.5 times their regular rate on Sundays and on certain holidays as compensation for working such days. However, the extra rate of pay will decrease each year until 2023. It is important to note that not all holiday pay will be disrupted. Below is a timeline with the adjusted pay rate regarding Sunday and premium pay:

Sundays-Retail Establishments:

  • January 1, 2019 - 1.4 times hourly rate
  • January 1, 2020 - 1.3 times hourly rate
  • January 1, 2021 - 1.2 times hourly rate
  • January 1, 2022 - 1.1 times hourly rate
  • January 1, 2023 - 1.0 times hourly rate

Holiday Premium Pay for Memorial Day, Independence Day, and Labor Day:

  • January 1, 2019 - 1.4 times hourly rate
  • January 1, 2020 - 1.3 times hourly rate
  • January 1, 2021 - 1.2 times hourly rate
  • January 1, 2022 - 1.1 times hourly rate
  • January 1, 2023 - 1.0 times hourly rate

Holiday Premium Pay for New Year's Day, Columbus Day before 12 p.m. and Veterans Day before 1 p.m.:

  • January 1, 2019 - 1.5 times hourly rate
  • January 1, 2020 - 1.5 times hourly rate
  • January 1, 2021 - 1.5 times hourly rate
  • January 1, 2022 - 1.5 times hourly rate
  • January 1, 2023 - 1.5 times hourly rate

Although the “Grand Bargain” bill was passed in 2018, the results of the bill are rolled out yearly. It is important to stay on top of the yearly changes to ensure compliance with the adjusted yearly rates.

If you have any questions regarding the Massachusetts 2020 Minimum Wage and Sunday and Premium Pay, please contact the attorneys at Royal P.C.

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