What You Need to Know About Massachusetts Minimum Wage Increases

Massachusetts minimum wage

As a small business owner in the Bay State, we know you’re eager to stay on top of the recent minimum wage increases. So we’ve put together this quick guide with all the info you need to know.

What is the minimum wage in Massachusetts?

The state minimum wage in Massachusetts is $11.00 per hour for non-tipped employees.

If you run a business with tipped employees (defined as employees who receive more than $20 a month in tips), you may pay them a minimum wage of $3.75 per hour. However, employees must be informed of this hourly rate and must receive at least the minimum wage when actual tips and wages are combined.

Keep in mind that counties, cities, and towns may have their own minimum wage laws. Be sure to check what local wage laws may apply to you.

Get Started with Square Payroll

Payroll processing trusted by thousands.

Get Started
What happened in 2018?

In late June 2018, Massachusetts Gov. Charlie Baker signed a bill that will progressively raise the state standard minimum wage from $11 an hour to $15 an hour, beginning in 2019. For tipped employees, the minimum wage will increase to $6.75 by 2023.

What’s happening beyond 2019?

Wages for tipped and non-tipped employees will increase between 2019 and 2023. Here’s what the minimum wage increases will look like in the coming years:

Date Standard Minimum Wage Tipped Minimum Wage
January 1, 2019 $12.00 $4.35
January 1, 2020 $12.75 $4.95
January 1, 2021 $13.50 $5.55
January 1, 2022 $14.25 $6.15
January 1, 2023 $15.00 $6.75
How should small business owners prepare for possible changes to the minimum wage?

With changes to Massachusetts’ minimum wage potentially on the horizon, you should make sure you are prepared. Every business is different, so there isn’t one right way to do this. Here are a few options you may want to consider:

As always, to make sure your business is prepared and stays in compliance, you should discuss these potential changes to the Massachusetts minimum wage laws with your accountant and lawyer.

Recommended Articles
Understanding the Federal Minimum Wage
How to Do Payroll Taxes and Process Payroll Yourself
Most Common Payroll Mistakes and How to Avoid Them

Pay your employees with a couple of clicks.

Square Payroll imports your employees’ timecards, calculates overtime, and handles taxes so you can pay your team faster.

Get started

Learn More

Get the latest business tips and advice delivered straight to your inbox.

Each issue will feature articles and advice on how to grow sales, improve your marketing, simplify accounting, and much more.