The Legislature made Quick Work of Conflicting Bills to Increase the Massachusetts Minimum Wage, which will Rise Annually and Reach $11 per hour by 2017
By Jack K. Merrill, Esq.
For the first time since January 2008, the Massachusetts minimum wage is rising. This time, legislation signed in June by Gov. Deval Patrick will hike the rate more substantially than in the past, from the current $8 per hour to $11 as of January 1, 2017.
The new baseline appears to be part of a nationwide trend to increase minimum wages. More than 30 states have considered rate increases in 2014, and Massachusetts is among 10 to enact them so far. When the $11 threshold is reached, the state’s minimum wage may be the highest among all states, though Washington D.C., which also raised its rate in 2014, will be at $11.50/hour by mid- 2016.
A minimum wage rate increase movement has developed amid protests by low wage earners across the country. In Boston, fast food workers led 2013 demonstrations that sought a rate increase to $15 per hour. While politics continues to prevent the federal government from moving its rate from $7.25/hour, state governments do not face the same problem. In Massachusetts, the minimum rate must remain at least 50 cents higher than the federal rate under the recently passed bill.
The Massachusetts increase begins to take effect on January 1, 2015, when the minimum rate increases to $9/hour. The rate will go to $10 on January 1, 2016, then to $11 a year later. In addition, the minimum hourly rate for tipped employees will increase from the current $2.63 to $3.75 by 2017. That class of employees, who are common in restaurants and other service businesses, must receive enough tips to bring their wages to the applicable minimum rate. Any deficiency must be made up by their employers. [Read more...]