Massachusetts: New Law Affects Employers

Massachusetts 2014 legislative session runs well into 2015, but there is an important bill Governor Patrick has already signed which requires mention.

The most notable bill signed thus far is an increase in the state’s minimum wage. Senate Bill 2195, An Act Restoring the Minimum Wage and Providing Unemployment Insurance, raises the minimum wage to $11.00 over three years.  The first increase to $9.00 per hour takes effect January 1, 2015. Tipped earners will also see an increase, the first since 1999. According to Rachel Kaprielian, Secretary of Labor and Workforce Development, “a 38 percent pay raise means a lot to low-wage workers who may have to work several jobs just to put food on the table”. Although challenging, it is in the best interests of government to balance the needs of employers and employees. Part of this balance is evident with the unemployment reform portion of the bill. Representative Brian Dempsey states, “by adjusting unemployment insurance rates, we are protecting the Commonwealth’s businesses from an anticipated premium increase, which in turn safeguards current jobs”.

Compliance Poster Company’s (CPC) HR Research and Compliance Team is tracking state, federal and Canadian provincial legislation. CPC blogs allow the HR Compliance Team an opportunity to showcase updates to laws that affect the services and products CPC offers employers.  Stay tuned for more as we approach the end of the year allowing Governor Patrick additional time to enact laws that affect employers in Massachusetts.