Massachusetts Releases New Requirements for Calculating Tipped Wages

Image from Canva

By Kelsey Basten

Published on Jan. 24, 2019

As of Jan. 1, 2019, Massachusetts employers with tipped employees are required to calculate tipped wages at the end of each shift. In the past, employers could calculate tipped wages at the end of each pay period. The new law was enacted with the intention to ensure employees receive at least minimum wage during slow shifts, instead of averaging the total of all shifts during a pay period.

Currently, Massachusetts tipped wage is $4.35 (as of Jan. 1, 2019), while the basic minimum wage is $12.00 (as of Jan. 1, 2019). If the total of an employee’s tipped rate plus tips is less than the basic minimum wage, employers are required to pay the difference to employees.

Tipped Wage Increase Schedule

Massachusetts’s tipped wages are scheduled to increase yearly. The rates increase as follows:

  • 1, 2019 – $4.35
  • 1, 2020 – $4.95
  • 1, 2021 – $5.55
  • 1, 2022 – $6.15
  • 1, 2023 – $6.75

An employer must pay the hourly tipped wage rate to employees if the employee earns more than $20 a month in tips and the hourly tips plus the hourly tipped rate add up to the minimum wage. If the wage rate plus tips do not add up to at least the minimum wage, the employer is required to pay the difference.

This Labor Law News Blog is intended for market awareness only, it is not to be used for legal advice or counsel.

Keep Informed
with GovDocs Labor Law News

Who is GovDocs?

GovDocs simplifies the complexity of employment law management (ELM) for large, multilocation employers across all industries. We offer a suite of innovative compliance products, including labor law postings, data software applications and other program management tools, to ease the day-to-day responsibilities of human resources, compensation, legal and finance teams.

Have less than 30 locations? 

The GovDocs Poster Store simplifies the complexity of posting compliance for employers with less than 30 locations across all industries. We offer a variety of posting products to meet your labor law compliance needs, including federal and state posters; county and city poster packages; and other HR posters. Plus, when you purchase posters with GovDocs Update Service, you ensure your locations automatically receive updated posters whenever changes occur.