Introduction to employment laws in Massachusetts
Overview
Massachusetts has a robust set of employment laws and regulations governing relations between employers and employees. Employers must comply with these laws, which cover a wide range of topics such as minimum wage, overtime, leave policies, hiring practices, and termination procedures.
Understanding and adhering to Massachusetts’ labor laws is crucial for businesses operating in the state, which is why we’ve put together this guide to help you stay compliant as you hire workers in Massachusetts.
Employing in Massachusetts: Key employment laws and practices
Standard work hours
In Massachusetts, full-time employment is typically a 40-hour workweek. However, specific industries may have different standard hours due to the nature of their operations.
Work hours for contractual workers depend on the terms agreed upon in the contract. Employers must clearly define working hours in contracts to avoid misunderstandings and potential legal issues.
Self-employed professionals operate independently and set their own work schedules. While they are not directly subject to state employment laws on work hours, it’s crucial they are aware of industry practices.
Minimum wage and overtime
The minimum wage in Massachusetts is $15.00 per hour, offering workers a higher rate than the federal minimum. Employers are also required to pay overtime at a rate of one-and-a-half times the regular hourly rate for any work done in excess of 40 hours in a week.
Insurance and benefits
Massachusetts law requires employers to provide certain benefits. These include worker’s compensation insurance to protect employees if they get injured on the job and unemployment insurance, which provides temporary income to workers who lose their jobs through no fault of their own.
In addition, employers with more than 50 employees must provide health insurance. Massachusetts also has a unique healthcare reform law that requires all residents to have health insurance if affordable options are available.
Benefit | Coverage | Requirements |
Worker’s compensation insurance | Medical treatment, disability benefits, vocational rehabilitation, death and funeral services | Covers work-related injuries and illnesses |
Unemployment insurance | Temporary income replacement for workers who lose their job through no fault of their own | Required for any employer of one or more staff working on a permanent, temporary or part-time basis on one or more days in each of 13 weeks during a calendar year |
Health insurance | Comprehensive medical coverage including doctor visits, hospital stays, prescription drugs, etc. | Massachusetts requires all residents to have a minimum level of health insurance coverage. Employers with 11 or more full-time equivalent employees must offer health insurance or face penalties |
Meal and rest periods
Massachusetts employment laws require that all employees who work more than six hours are entitled to a 30-minute meal break. This break can be paid or unpaid, depending on the employer’s policy. During this break, employees must be free to leave the premises and are allowed to pray.
Massachusetts HR compliance also notes that there are certain exemptions to this rule. Certain types of employers, such as those in certain factory work, are exempt from this law.
Exemptions can also be granted by the Attorney General under specific circumstances. Therefore, it is crucial for businesses to fully understand these exceptions and implement them correctly to maintain compliance with Massachusetts employment laws.
Multiplier makes it easy to manage benefits for Massachusetts employees.
Anti-discrimination laws
In Massachusetts, anti-discrimination laws are comprehensive and offer protection to a wide range of protected classes. The Fair Employment Practices Law (FEPL) prohibits employers with six or more employees from discriminating against current and prospective employees based on protected characteristics.
These characteristics include race, color, religious creed, national origin, ancestry, sex (Including pregnancy, childbirth, and related medical conditions), age (over 40), criminal record (inquiries only), disability, sexual orientation, gender identity, genetics, military/veteran status, and qualified handicap.
The FEPL also prohibits sexual harassment and retaliation against individuals who oppose an unlawful practice or file a complaint. Businesses must ensure they are strictly following these anti-discrimination laws as part of their Massachusetts HR compliance strategy.
Leave policies
Massachusetts law grants employees certain leaves of absence. Under the Massachusetts Parental Leave Act (MPLA), employers must provide up to eight weeks of unpaid leave for the birth or care of a newborn child, or the adoption of a child.
The state also provides Paid Family and Medical Leave (PFML), allowing eligible employees to take up to 26 weeks of paid leave per year for family and medical reasons.
Under Massachusetts Earned Sick Time Law (MESTL), eligible employees may take sick and safe leave for personal illness or attending to ill family members.
Other types of leave include vacation, bereavement leave, jury duty and military leave. The exact details of these leaves vary, but they are all part of the Massachusetts HR compliance requirements.
Leave type | Duration |
Parental leave | Up to eight weeks |
Paid family and medical leave | Up to 26 weeks per year |
Vacation leave | Some are required, based on employer size |
Bereavement leave | Varies based on employer policy |
Jury duty | As needed |
Leave for victims of domestic violence, sexual assault, and stalking | Up to 15 days |
Volunteering leave | Under certain conditions |
Inclement weather leave | Typically in the event of bad weather |
Military leave | As needed |
Termination laws
Massachusetts is an at-will employment state. This means that either the employer or the employee can terminate the employment relationship at any time for any reason, provided it’s not illegal. Employers should be aware that there indeed are certain situations where termination may be considered illegal. For instance, firing someone based on their protected class or in retaliation for reporting a violation or participating in an investigation is illegal.
Under Massachusetts employment laws, severance pay is not mandated by state law and depends on the employer’s policy or an employment contract.
Easily onboard employees in Massachusetts?
Safety and health
Massachusetts employment laws include regulations related to workplace safety and health.
Employers are required to maintain safe and healthy work environments under the Occupational Safety and Health Act (OSHA). This includes providing necessary personal protective equipment, ensuring machinery and equipment are safe, and providing training on safety procedures.
These include regulations related to smoke-free workplaces and safe driving practices. Under the Massachusetts Smoke-Free Workplace Law, employers must provide a smoke-free environment for all employees working in enclosed workplaces. In addition, all drivers are prohibited from texting and from writing, sending, or reading electronic messages while operating a vehicle.
Taxes in Massachusetts
Employer and employee taxes are important components of Massachusetts HR compliance. Both federal and state taxes apply in the state, and they include income tax, unemployment insurance tax, and the employment training tax.
For employees, Massachusetts has a progressive income tax. The state also has a payroll tax that employers need to withhold from employee paychecks.
Tax type | Tax rate |
Federal income tax | Varies by income bracket |
State income tax | 5% to 9% |
Employment training tax | 0.056% |
Unemployment insurance tax | 1.023% to 15.599% |
Managing Massachusetts employees with an Employer of Record (EOR)
Staying on top of the ever-evolving employment laws in Massachusetts can be a complex task. With legislation on wages, benefits, leaves, and accommodations constantly changing, it’s crucial to stay informed and compliant to retain your top talent.
Multiplier, as your Employer of Record (EOR), enables you to legally hire full-time workers in Massachusetts, without needing a U.S. entity. Our all-in-one platform allows you to manage payroll, benefits, visas, and even stock ownership plans from a single interface.
With Multiplier’s Global Payroll Platform, running payroll operations in the state becomes a simple, streamlined task. This ensures your team members are paid on time while we handle local taxes, contributions, and withholdings.
Book a demo today to see how we can help streamline your HR and compliance processes.
FAQs
Massachusetts has numerous state-specific employment laws that employers should be aware of. These include Fair Employment Practices Law (FEPL), Massachusetts Pregnant Workers Fairness Act (MPWFA), Massachusetts Parental Leave Act (MPLA), and the Massachusetts Earned Sick Time Law (MESTL). Each of these laws has specific requirements and protections for employees concerning discrimination, leave allowances, wages and benefits, among other areas.
The “ban the box” law in Massachusetts prohibits employers from asking about an applicant’s criminal history on initial written application forms. Employers can inquire about criminal history later in the application process, such as during an interview. However, if an employer has a copy of a job applicant’s criminal offender record information, the employer must provide the individual with a copy of the record prior to questioning about his or her criminal history.
The current minimum wage in Massachusetts is $15.00 per hour for most employees. Non-exempt employees must be paid one-and-one-half times their regular hourly rate for all hours worked over 40 hours in a given workweek. Retail employers with eight or more employees must pay non-exempt employees at least one and one-tenths times their regular hourly rate of pay for work hours worked on Sundays and certain holidays.
Under the Massachusetts Parental Leave Act (MPLA), eligible employees can take up to eight weeks of unpaid leave for the birth or adoption of a child. The Massachusetts Paid Family and Medical Leave (PFML) law provides up to 26 weeks of family and medical leave per year, funded by a mix of employer and employee contributions.
The Massachusetts Smoke-Free Workplace Law mandates that all enclosed workplaces provide a smoke-free environment for all employees. “No smoking” signs must be prominently displayed where smoking is prohibited, ensuring a healthy and safe working environment.
