Understanding Massachusetts Overtime Law: The Basics
In Massachusetts, overtime law mandates that employees receive "time-and-a-half" pay for any hours worked beyond 40 in a single workweek. Specifically, under MGL c. 151, § 1A, this means paying 1.5 times the regular hourly rate. This law applies regardless of how many hours are worked daily, focusing solely on the total hours in a week. For example, an employee earning $20 per hour would receive $30 for each overtime hour worked beyond 40 hours weekly.
The state minimum wage, effective January 1, 2023, is set at $15.00 per hour, impacting overtime calculations and ensuring a minimum overtime rate of $22.50 per hour for non-exempt employees. However, tipped employees’ overtime is calculated from the full state minimum wage, subtracting the tip credit to determine a final rate of $14.25 per hour. Understanding these nuances is crucial for compliance and accurate payroll practices.