A reminder for Massachusetts employers: effective January 1, 2017, the minimum wage in Massachusetts is increasing from $10.00 to $11.00 per hour.
The minimum rate for tipped service employees is also increasing, from $3.35 to $3.75 per hour. This “service rate” only applies to workers who provide services to customers and regularly receive more than $20 in tips per month. Additionally, their average hourly tips plus the minimum service rate must equal or exceed the $11.00 per hour minimum wage. Otherwise, service employees must be paid the $11.00 per hour minimum wage.
The rate increases stem from legislation passed in June 2014, which phases in increases to the minimum wage over three years, starting on January 1, 2015. The 2017 minimum wage increase marks the third and final increase pursuant to the 2014 legislation.