Just as the 2018 legislative session came to a close on the night of July 31, 2018, the Legislature passed a bill reforming the law of noncompetition agreements (“noncompetes”) in Massachusetts.  The bill is being viewed as a compromise following years of unsuccessful efforts to pass noncompete reform.  The governor is expected to sign the bill into law in the coming days.  Continue Reading After Years of Debate, Massachusetts Finally Passes Non-Compete Bill

On June 28, 2018, Massachusetts Governor Charlie Baker signed a bill titled “An Act Relative to Minimum Wage, Paid Family Medical Leave, and the Sales Tax Holiday” (H.4640).   The new law, dubbed the “Grand Bargain,” implements incremental increases in Massachusetts’ minimum wage over the next five years, and creates a new paid family and medical leave program in the Commonwealth. A full text of the bill can be found here.

Minimum Wage Increase

The law increases the minimum wage from $11.00 to $15.00 over the course of five years.  In 2019, the minimum wage will increase from $11.00 to $12.00.  Thereafter, it will continue to increase each year in $0.75 increments until it reaches $15 in 2023. The Grand Bargain also results in a five-year phase out of the requirement of premium pay for hours worked on Sunday.

Tipped employees will also receive a boost from the current $3.75/hour tipped minimum wage, which will increase by $0.60 increments each year until 2023 when the tipped minimum wage will be $6.75/hour.

Paid Family and Medical Leave Program

Reflecting a nationwide trend, the law establishes a Paid Family and Medical Leave program to take effect on January 1, 2021. The program will entitle eligible employees to take up to 12 weeks of paid family leave and up to 20 weeks of paid medical leave, with a maximum of 26 combined weeks of paid leave in the same year.

Individuals eligible for leave include employees, self-employed individuals, and certain former employees.  The program will be funded by employers and employees through a payroll tax. Continue Reading Massachusetts Raises Minimum Wage and Passes Paid Family and Medical Leave Law