What are the Massachusetts New Employment Laws for 2026?
Your Guide to Massachusetts New Employment Laws in 2026
A new year ushers in new laws, and 2026 is no different. As we ring in 2026, there are Massachusetts new employment laws that will go into effect. Employees need to be aware of them so that they receive what is legally theirs. It is also important for employers to be aware of these changes so they do not violate any laws. At the Gordon Law Group, we specialize in employment law and are committed to protecting your rights as an employee.
As we gear up for 2026, we’re going to explore the laws that will take effect so you understand how they will impact you in the workplace.
Massachusetts New Employment Laws
The main change to Massachusetts employment laws centers around the Massachusetts Paid Family and Medical Leave program (PFML).
Changes to the Massachusetts Paid Family and Medical Leave Program (PFML) in 2026
- As of January 1, 2026, the maximum weekly benefit amount that you can receive in PFML benefits will be $1,230.39 per week. This is an increase from $1,170.64 in 2025.
- Any medical leave benefits paid to employees of companies with 25 or more employees will be subject to federal employment taxes. Thai includes FICA and FUTA. Employees will need to remit their share of these taxes.
- Employers must also place a new workplace poster in the workplace to reflect the new weekly benefit by January 1, 2026.
- The total contribution rate will remain unchanged. Any employers with 25 or more employees will have a rate of .88% of eligible wages. Employers with fewer than 25 employees will have a rate of .46% of eligible wages.
If you plan on taking a paid family and medical leave, you need to be aware of these changes so that you are receiving what is lawfully yours. Employers also need to note the changes so they can make the proper adjustments.
Updates to the Pay Transparency Act
Key aspects of the Massachusetts Pay Transparency Act (The Frances Perkins Workplace Equity Act) took effect in late 2025, but in 2026, a critical compliance obligation for larger employers carries over. This involves EEO-4 Report Filing. Public sector employers are subject to the federal EEO-4 requirement. These employers must submit their EEO-4 report to the Massachusetts Secretary of the Commonwealth by February 1, 2026. This is done every other year. The Act requires this to be done to address wage gaps across the state.
Commuter Benefits Exclusion Update
There are also some changes to employee commuter benefits and state income tax exclusions that employees and employers should be aware of.
For taxable years beginning in 2026, the Massachusetts personal income tax exclusion for qualified bicycle commuting reimbursements is back on the books. It is capped at $20 per month.
The monthly exclusion amounts for employer-provided parking, transit pass, and commuter highway vehicle benefits are also subject to annual inflation adjustments and capped at $335 for the year.
Will There Be Changes to Minimum Wage in Massachusetts in 2026?
As of this writing, there are no changes to the Massachusetts minimum wage for 2026. But that doesn’t mean that it won’t happen in the future. There is a bill that proposes increasing the minimum wage in Massachusetts in increments over the next several years.
The proposal calls to raise the minimum wage from $15 an hour to $16.25 in 2026, and then to $20.00 an hour by 2029. The bill also includes annual inflation adjustments and 60% for tipped workers.
At the Gordon Law Group, we will continue to monitor this for you and let you know if anything changes so that you are always earning what you should be by law.
Other Proposed Employment Legislation
Besides efforts to increase the minimum wage, there is also a push to update the overtime threshold for exempt employees. The bill proposes an increase to $1,211,53 per week in 2026 and $1,403.84 in 2027. As of this writing, this is just a proposal and has not yet been passed.
Why You Need to Know About Changes to Employment Law
It is important for both employees and employers to be aware of changes to employment law. These changes can greatly impact both parties, and not being aware can lead to legal issues for employers and missed benefits for employees.
Importance for Employers
- Not being in compliance with employment laws can lead to fines and penalties. Depending on the violation, these fines can run into the thousands of dollars.
- Employers want to stay in the loop about changes to employment laws because they can best avoid employee lawsuits.
- Being aware of changes to employee laws and being known as one who upholds them, can make employers attractive to new employees.
Importance for Employees
- New laws often bring new benefits or changes to benefits that are critical. These can impact families, which is extremely important.
- Being aware of new laws can also make a difference in an employee’s paycheck. If you are not aware of new laws, you may not be fairly compensated.
- New laws also explain what you should expect in the workplace and how you should be legally treated.
The Gordon Law Group is Here When You Need an Employment Attorney
When you need an employment attorney, you want the Gordon Law Group on your side. We represent employees throughout the Bay State so that they get the representation they deserve. Our team helps people with labor and employment law issues such as discrimination, wage issues, wrongful termination, and more. We also specialize in executive employment law to help high-level employees get the protection they deserve. Call us today at 617-536-1800 or reach out to us online to schedule a free case evaluation and discover what we can do for you.
