Minimum wage in Massachusetts

Currently the minimum wage in Massachusetts is $6.75 per hour. This year the Massachusetts legislatures voted to raise the state’s minimum hourly wage by $1.25 per hour over the next two years. This means on January 2007 the minimum wage will increase to $7.50 per hour and on January 2008 it will increase to $8.00 per hour. The minimum wage for service or “tipped” employees is $2.63 per hour but “tipped” employees must receive a minimum of $6.75 per hour when tips and hourly wages are combined. The minimum hourly wage for agricultural employees is $1.60 per hour.

Under Massachusetts General Laws, c.149, s.152A, an employer can require service or “tipped” employees to pool their tips only with other service employees such as service bartenders or wait staff. However, the total proceeds of a tip or service charge contained in a bill must be remitted only to wait staff employees or service bartenders in proportion to the service provided by those employees. Under no circumstances can management employees or owners receive any portion of their employees’ tips.

Starting in 2008 any future increases in the minimum wage would be automatically linked to increases in the rate of inflation which would ensure the buying power to keep pace through high inflationary periods. In addition, the minimum wage law also guarantees Massachusetts’ minimum wage will be at least ten cents higher than the federal minimum wage.

It is estimated that at least 261,000 low-paid workers will benefit from this increase in the minimum wage. Of those workers at least sixty percent are women and one third are sole breadwinner for their families. In addition, several areas of the state with the greatest concentration of low-wage workers will also benefit the most. These areas include western and north-central Massachusetts up through Fitchburg and Leominster; the south coast area including Fall River and New Bedford and greater Springfield.