Massachusetts’ minimum wage is on the rise, according to a survey by the Associated Industries of MA. According to the survey, employers in manufacturing, professional services, and retail anticipate a 3.3% increase in wages this year. These companies have been budgeting for a minimum wage increase since 2007 and see an increase as a way to attract and retain the best employees. This is good news for employers and consumers alike. But is it good news for workers?
Minimum wage increases in 21 states
As of January 1, 2018, the federal minimum wage is $15 per hour in all but two states. The increase is due to the Fight for $15 movement, which began in 2012 with fast-food workers in the fast-food industry taking a walk off the job. These movements have sparked a wave of state and city minimum wage increases. But how much will the new minimum wage hikes cost workers? The following is an overview of minimum wage increases in each state.
The cost of living in eight states has increased the minimum wage, so minimum wage increases in those states automatically take effect. The other ten states have approved ballot measures or legislation to increase the minimum wage. In addition to these increases, the minimum wage in Delaware will gradually rise to $15 per hour by 2025. In Washington State, the minimum wage is expected to reach $15 per hour in two years through inflation adjustments. While the minimum wage in California may remain stagnant for some time, the rate is expected to rise to $15 per hour by 2022.
Increases subject to the consumer price index
The debate on whether to raise the minimum wage in Massachusetts is not over. Currently, the minimum wage is set at $8 per hour, and advocates say that it should be increased by at least $1 each year, tied to the consumer price index. Other states, such as Vermont, Ohio, Oregon, and Washington state, already have minimum wage increases that are tied to the consumer price index. Ultimately, the decision will come down to whether the Massachusetts minimum wage increases will benefit the state’s economy.
This year’s planned increase is welcomed by advocates of minimum wage hikes. It will mean higher wages for hundreds of thousands of workers. According to Phineas Baxandall, the senior policy analyst at the left-leaning Mass. Budget and Policy Center, the new minimum wage will translate into an additional $29,640 for a full-time, 40-hour worker. In Massachusetts, the minimum wage is set to rise to $12 an hour by 2020.
Compensation for tipped employees
The minimum wage for tipped employees in Massachusetts increased on January 1, 2019. The minimum wage for most workers increased to $12 per hour, and the tipped minimum wage rose to $4.35 an hour. By 2023, tipped employees will earn $6.75 an hour. The new law contains important protections for tipped workers. Below, we’ll look at what the new law requires employers to do.
If an employer allows employees to earn tips, the state of Massachusetts has enacted laws that prohibit tip pooling. Employers cannot divert tips to other employees. However, employers can count tips if they are in a valid tip pool. This rule does not apply to bartenders who serve customers, such as counter staff. In addition, employees can’t be required to share tips with others or keep them for themselves.
Impact on employers
The proposed increase in the minimum wage in Massachusetts has divided opinion. Opponents say it would raise costs for employers and drive up prices for consumers. They also worry that an increase would cost Massachusetts low-wage workers a significant amount of their jobs. Others argue that an increase would make the state less competitive against neighboring states and hurt Massachusetts’ economy. Regardless of their reasons, however, the proposal will likely pass.
In 2008, the state legislature cracked down on employers who fail to pay their workers the minimum wage. It made the penalty for not paying a worker the minimum wage three times as much as the actual amount owed. Additionally, violators must pay attorneys’ fees and must reimburse employees three times the amount of unpaid wages. The Massachusetts Attorney General must be notified if an employee feels that their employer violates the law. If the state finds that the employer is violating the law, it may investigate the matter and issue a “right to sue letter.
Tax credit for employers with fewer than 50 full-time employees
The Tax Credit for employers with fewer than fifty full-time employees is available to small businesses that hire less than fifty full-time employees. The IRS defines a full-time employee (FTE) as someone who works at least two thousand eight hundred hours per year. A part-time employee can count as a full-time employee if both work more than eight hundred hours per year.
To qualify for the tax credit, an employer must have fewer than 50 full-time employees (FTEs). FTEs are calculated based on average wages. This can be difficult for employers with fewer than 50 full-time employees. However, if the company has fewer than 50 full-time employees, credit is possible. Employees can be part-time or seasonal. The number of employees should be calculated using average annual wages and not FTEs.