(Last Updated On: December 12, 2024)
Employers in Natick and Boston must comply with state and federal laws concerning minimum wage and overtime pay in Massachusetts. It is essential for employers to know that some, but not all, employees are entitled to receive at least the minimum wage and to be paid an overtime wage when they work a certain number of hours in a workweek or during a pay period (depending on the employee’s schedule and how they are paid). If you have employees who are entitled to minimum wage and overtime pay, and you do not provide those wages, you can be subject to the consequences of minimum wage or overtime pay violations. The employee may be able to file a wage and hour law claim against you in order to seek back pay and additional compensation, and you can also be subject to additional penalties.
To ensure that you pay all employees the wages they are owed, it is critical to understand your minimum wage and overtime pay obligations in Massachusetts. Consider the following information from our Massachusetts employment lawyers.
Minimum Wage and Overtime Pay Requirements
Under the federal Fair Labor Standards Act (FLSA) and the General Laws of Massachusetts, a wide range of employees are required to receive the minimum wage and overtime pay. These requirements do not apply to all employees — which we will explain below — but they apply to many employees, especially those working on an hourly basis.
The minimum wage in Massachusetts is $15.00 per hour, and all employees must be paid at least the minimum wage. It is important for Massachusetts employers to know that, although the federal minimum wage is significantly lower, they must comply with the state minimum wage.
Employees who are eligible for overtime pay must be paid at 1.5 times their regular rate of pay when they work more than 40 hours in a work week. The only wages that are paid at the overtime rate are the hours beyond the initial 40. For example, if an employee earns $20.00 per hour, their overtime rate would be 1.5 times that amount, or $30.00 per hour. If the employee works 45 hours in a week, those additional 5 hours must be compensated at a rate of $30.00 per hour.
Non-Exempt Versus Exempt Employees Under Federal and State Law
It is important for employers to know, however, that an employee’s classification, job type, and pay will determine whether the employee is entitled to receive overtime pay and has minimum wage rights. When identifying employees who are owed minimum wage and overtime, there are important exemptions to consider. Generally speaking, the FLSA clarifies that “non-exempt” employees are entitled to minimum wage and overtime pay and explains that there are certain categories of “exempt” employees that are not eligible for overtime pay under federal law.
According to the FLSA, the following categories of employees are considered to be “exempt” and are not entitled to receive overtime pay as long as they are paid on a salaried basis and meet the salary-level threshold set by federal law ($43,888 or $844 per week annually, with an increase to $1,128 per week or $58,656 annually as of January 1, 2025):
- Executives;
- Administrative employees;
- Professional employees, including learned and creative professionals;
- Computer employees; and
- Outside sales employees.
There are also exemptions for workers classified as “highly compensated employees.” Each of the above categories has specific requirements that must be met in order for an employee to be considered “exempt.”
In addition, the General Laws of Massachusetts identify a number of types of employees who are also not eligible for overtime pay. Massachusetts specifically excludes, for example, fishermen, hotel and similar hospitality employees, restaurant workers, non-profit school or college employees, and agricultural laborers, among others. To determine whether your employees are exempt or must be paid according to minimum wage and overtime laws, it is important to seek legal advice.
Unlawful Deductions and the Massachusetts Minimum Wage
Non-exempt employees who are entitled to the minimum wage in Massachusetts cannot have deductions made from their paychecks that would result in them receiving less than the minimum wage.
It is also important for employers to know that while federal law does not otherwise limit most deductions an employer can make, Massachusetts law only permits deductions where they are allowed by law, such as for taxes or where the employee requests withholding. Massachusetts law does not permit employers to deduct money for the employee’s tools or supplies, for example, even if the employee still earns at least the minimum wage.
Contact a Massachusetts Employment Law Attorney
If you have any questions about how and when you must pay your employees or compliance with wage and hour laws under the FLSA or the General Laws of Massachusetts, you should seek legal advice. An experienced Boston employment lawyer can speak with you today. Contact Rodman Employment Law for more information.
