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Massachusetts Minimum Wage Will Increase to $14.25 on January 1

Published:  December 8, 2021

The new year will once again bring an increase to the minimum wage in the Commonwealth. Effective January 1, the minimum wage will rise to $14.25. This represents a seventy-five-cent increase from this past year’s rate of $13.50 and a $1.25 increase from 2020’s wage of $12.75.

Minimum wage workers in Massachusetts will continue to benefit from an annual raise each year through 2023, when current state legislation will reach its goal of $15. The minimum wage for tipped workers will increase as follows: $6.15 in January 2022, (up from $5.55 this past year), and then to $6.75 in January of 2023. A tipped employee is anyone who makes more than $20 a month in tips. These workers must receive at least the overall minimum wage when combining tips and wages.

Many businesses have begun to raise their own minimum wages beyond what the Commonwealth is requiring. For example, Bank of America raised their minimum wage from $21 to $25 an hour while Costco has raised their minimum wage from $16 to $17 an hour. However, the increase in payroll may be cause for concern for many businesses around the Bay State as the financial effects of COVID-19 continue to be felt.

Of note, the minimum wage in Connecticut recently increased to $13.00 and is set to rise again to $14.00 in July 2022.

If you have questions about the minimum wage increase, or any other general employment issues, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.