Minimum Wage Increases to $13.50 on January 1, 2021, on Path to $15.00

Minimum wage increase. Happy New Year everyone!  Great news for employees.  Massachusetts minimum wage increased to $13.5o on January 1, 2021, and the wage for tipped employees increased to $5.55, as long as those tipped employees earn more than $20 per month in tips.

For those following the minimum wage increases in Massachusetts, this is no surprise as the increases are part of the planned move to $15.00 by January 1, 2023.

If you are an employee making less than wage, give us a call.  We’d be happy to discuss the situation with you.

Minimum Wage Increase to $13.50 on January 1, 2021: What Employers and Employees Need to Know

Starting January 1, 2021, the minimum wage in Massachusetts is set to increase to $13.50 per hour, marking a significant change for businesses across the state. This wage increase is part of a multi-year plan that aims to gradually raise the state’s wage to $15 per hour by 2023. For both employers and employees, understanding the impact of this increase is crucial to ensuring compliance and avoiding potential legal issues.

What Does the Minimum Wage Increase Mean for Employers?

The wage increase to $13.50 per hour affects most businesses that employ hourly workers in Massachusetts. Employers will need to adjust their payroll systems and compensation practices to ensure that they are paying their employees in accordance with the new law. Failure to comply with the new wage requirements can result in penalties and fines from the Massachusetts Attorney General’s office.

Employers should also be aware of other related changes, including adjustments to overtime pay. In Massachusetts, employees who work more than 40 hours per week must be paid at least 1.5 times the regular minimum wage rate. With the increase in the base rate, the overtime rate will also rise, which may affect businesses that rely heavily on overtime.