Looking Ahead to 2023
Upcoming Changes
Increases in the Minimum Wage and Service Rate
Massachusetts employees making minimum wage are going to see a pay increase of 75 cents per hour, effective January 1, 2023, bringing their pay to $15.00 per hour. This does not include agricultural workers whose pay remains at $8.00 per hour. Workers under the service rate (those who provide services to customers and make more than $20 a month in tips) will see an increase of 60 cents per hour, beginning in 2023, as the service rate is now $6.75.
Changes to Massachusetts Paid Family and Medical Leave
In 2022, the maximum weekly benefit for Massachusetts Paid Family and Medical Leave is $1,084.31, however in 2023, it will increase to $1,129.82. Also, beginning in 2023, the contribution rate for employers with 25 or more covered individuals will decrease from 0.68% of eligible wages down to 0.63% of eligible wages. Employers should ensure that their wage deductions and contributions are adjusted accordingly. This is the second straight year the contribution rate has decreased.
Employees are still not permitted to use their accrued sick or vacation leave to “top off” their weekly benefit. While there may have been rumors that Massachusetts was planning to change this in 2023, no such change appears forthcoming.
If you have questions about these topics, or any other general employment issues, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
