Unemployment Solvency Fix passed by the MA House of Representatives

May 19, 2021

On May 18, 2021, the Massachusetts House of Representatives passed legislation to address the overwhelming Unemployment Insurance bills employers received in April. The plan would reduce the solvency assessment rate from 9.23% to 1.12% by shifting COVID related claims into a new account to be paid down over a period of 20 years. Payment of the first-quarter UI bill would be pushed back to July 31st when the second-quarter bills will also be due. Employers who already paid their first-quarter bill would be given a tax credit for the difference.


The House’s plan does not use any of the federal relief money to offset the long-term deficits in State’s unemployment trust. So, while this plan is an important first step in relieving the short-term burden on employers, industry groups continue to urge the State to use federal relief funds to refill the unemployment trust, which was depleted by the COVID crisis.


The plan would also require employers to provide sick leave to employees who are sick with COVID or are getting vaccinated. The sick leave would be capped at 40 hours with a maximum benefit of $850. Employers would then be reimbursed through state funds.


After August 1st, the system will go back to charging new COVID related unemployment claims directly to employers.


The Senate will likely take up the bill later this week. 


If you have any questions about this topic or any other labor and employment law matters, please feel free to contact the attorneys at The Royal Law Firm at 413-586-2288.

By The Royal Law Firm November 5, 2025
Attorney Amy Royal has once again been selected as a Super Lawyer ! As published by Super Lawyers Amy B. Royal is a top-rated attorney, with her firm headquartered in Springfield, Massachusetts. Providing legal representation in the New England states and New York, for a variety of different issues, Amy Royal was selected to Super Lawyers for 2014 - 2016, 2019 - 2025. Attorneys like Amy B. Royal are recognized by their peers for their outstanding work and commitment to the spirit of the legal profession. Their knowledge of the law, professional work ethic, and advocacy on behalf of their clients allow them to stand out among other attorneys in the field.
September 25, 2025
Starbucks is facing a new wave of litigation, in this instance over its workplace dress code. Employees in California, Colorado, and Illinois allege that the Company’s updated policy forced them to purchase clothing items out-of-pocket without reimbursement, raising questions about employer obligations under state expense reimbursement laws. The Lawsuits On September 17, 2025, employees in Illinois and Colorado filed class-action lawsuits, while workers in California submitted complaints to the State’s Labor and Workforce Development Agency. If the Agency declines to act, those workers intend to pursue their own civil claims. The lawsuits are backed by the union organizing Starbucks workers, and plaintiffs argue that requiring employees to buy specific uniform items without full reimbursement violates the states’ statutes. Under laws in California, Colorado, and Illinois, employers must cover necessary business expenses, which can include uniforms or clothing mandated by a dress code. What the Dress Code Requires The revised policy, implemented in May 2025, requires employees to wear a solid black shirt (short or long sleeves, but not sleeveless or midriff-bearing) underneath their signature green apron. Pants must be khaki, black, or denim, and shoes must be in muted tones such as black, gray, navy, brown, tan, or white. The policy also forbids “theatrical makeup” and visible face tattoos, prohibits nail polish and tongue piercings, and limits workers to one (1) facial piercing. In an effort to offset the change, Starbucks provided two shirts free of charge to each employee. Workers contend this was not enough, since multiple additional items were required to comply with the policy. Court documents show that some employees who failed to follow the dress code were subject to verbal warnings or sent home before starting their shifts. Worker Claims One plaintiff, Shay Mannik, a shift supervisor in Colorado, reported purchasing four black T-shirts, compliant shoes, and jeans to meet the dress code requirements. Despite these costs, Mannik claims they were never reimbursed. “It’s unfair that a billion-dollar company puts this burden on workers already struggling with unpredictable hours and understaffed stores,” Mannik stated through attorneys. Starbucks’ Response Starbucks defended the policy as a way to “deliver a more consistent coffeehouse experience to our customers and provide our partners with simpler and clearer dress code guidance.” The Company emphasized that it issued two free shirts to employees to prepare for the change. Key Considerations for Employers The Starbucks litigation underscores several important lessons for businesses:  Uniform Policies May Trigger Reimbursement Duties. Even when employers provide some clothing, state laws may still require reimbursement if employees must make additional purchases. State Laws Differ. California, Colorado, and Illinois all impose expense reimbursement obligations, but requirements vary, and enforcement can be aggressive. Here in Massachusetts, an employer does not need to pay for or reimburse an employee for general clothing, such as khakis, a black shirt, and black shoes, since these are ordinary items that can be worn outside of work. If the employer requires a specific style, brand, or logo (making the clothing a true uniform) then the employer must provide or reimburse for it and cover the cost of maintenance if special cleaning is needed. The only exception for ordinary clothing is if the cost would reduce the employee’s pay below minimum wage. Policy Rollouts Should Weigh Legal Risks. Employers introducing or revising appearance standards should carefully evaluate potential compliance costs, both financial and reputational. Takeaway The lawsuits against Starbucks will test the boundaries of state reimbursement laws and may influence how courts interpret employer obligations regarding dress codes. For companies, this case highlights the need to review policies proactively and ensure expense reimbursement practices comply with applicable state requirements. At The Royal Law Firm, we advise businesses on preventive compliance and represent employers when disputes arise. Our team’s focus on business defense ensures that policies are both operationally effective and legally sound. The Royal Law Firm LLP is a woman-owned, women-managed corporate law firm certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.