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Massachusetts Governor Signs New Law Increasing Minimum Wage and Reforming Unemployment Insurance System

Published:  June 26, 2014

This morning Governor Deval Patrick signed a bill into law that will raise the minimum wage in Massachusetts gradually from $8 per hour to $11 per hour by 2017 and will make changes designed to stabilize unemployment taxes. This bill also increases the minimum wage for tipped employees from $2.63 to $3.75 by 2017.

The first change we will see is in January 2015 when the minimum wage will increase to $9 per hour and the tipped employee minimum wage will increase to $3 per hour.

In 2016, the minimum wage will increase to $10 per hour and the tipped minimum wage will increase to $3.35 per hour. The final scheduled increase will be to $11 per hour in 2017 and $3.75 per hour for tipped employees. After 2017, the minimum wage will increase every year at the same rate as the consumer price index.

In addition to increasing the minimum wage, this new law will also freeze unemployment insurance rates for employers for three years and will extend the period the Department of Unemployment Assistance reviews an employer’s usage of unemployment insurance benefits from one to three years.

If you have any questions regarding the minimum wage or other wage and hour law issues, please contact any of the attorneys at Royal LLP at (413) 586-2288.

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