Massachusetts Legislature Passes Bill Providing Paid Family Leave, $15 Minimum Wage
Author: Michael Cardman, XpertHR Legal Editor
UPDATE: Gov. Charlie Baker signed the bill into law on June 28, 2018. A coalition of community organizations, religious groups and labor unions called Raise Up Massachusetts announced it would drop a ballot initiative that would have raised the minimum wage to $15.00 one year earlier than the bill; raised the minimum service wage for tipped employees to $9.00; and not have phased out the overtime pay requirements for retail employees who work on Sundays and certain holidays.
June 26, 2018
Massachusetts legislators have passed a bill that, if signed, would:
- Establish a paid family medical leave law;
- Raise the minimum wage by annual increments of 75 cents from the current rate of $11.00 per hour to $15.00 per hour in 2023;
- Raise the minimum service wage for tipped employees by annual increments of 60 cents from the current rate of $3.75 per hour to $6.75 per hour in 2023; and
- Gradually phase out the overtime pay requirements for retail employees who work on Sundays and certain holidays by annual increments of one-tenth from the current rate of one and one-half times an employee's regular rate of pay to one and one-tenth times an employee's regular rate of pay in 2022 and then no overtime in 2023.
Gov. Charlie Baker has until July 1 to either sign the bill, veto it or return the bill to the legislature with recommendations for amendments. If he takes no action, it becomes law on July 1. Baker has said he is still reviewing the bill, but that his concerns are mostly "technical."
The bill was a "grand bargain" forged between competing interests. "Although imperfect, this legislation reflects compromise from all sides and we accept it," James E. Rooney, president and CEO of the Greater Boston Chamber of Commerce, said in a statement. "In the end, all of us share the same goal of creating a better Massachusetts where all residents and businesses have the opportunity to thrive."