In 2019, Massachusetts employers and workers navigated a higher minimum wage as part of a multiyear plan approved by voters. The state rate rose on January 1 to provide greater income support for low-wage workers and to align with regional cost of living.
This overview outlines the key rates, scheduled increases, and practical impacts of the 2019 minimum wage rules for businesses and employees in Massachusetts.
| Effective Date | General Rate | Tip Credit | Tipped Worker Minimum Cash Wage |
|---|---|---|---|
| January 1, 2019 | $12.00 per hour | $3.35 per hour | $8.65 per hour |
| January 1, 2020 | $12.75 per hour | $3.35 per hour | $9.40 per hour |
| January 1, 2021 | $13.50 per hour | $3.35 per hour | $10.15 per hour |
| January 1, 2023 | $15.00 per hour | None | N/A |
2019 Minimum Wage Policy Context
Voter Approved Schedule and Inflation Adjustments
The 2019 rate reflects a voter approved schedule under a 2016 ballot measure that planned incremental increases to reach $15 by 2023. The 2019 increase continued this timeline and included annual adjustments tied to inflation once the rate exceeded $12.00.
Small Business and Seasonal Worker Provisions
Small employers and seasonal businesses with limited training needs had access to a lower training wage and specific rules for younger workers. These provisions aimed to support workforce entry while gradually moving toward the full minimum wage.
Hourly Rates and Tip Credit Rules
Standard Hourly Rate for Nonexempt Workers
Most employees in Massachusetts were required to be paid at least $12.00 per hour in 2019. Employers could apply a tip credit of up to $3.35 per hour, provided that tips brought the employee’s earnings up to the full minimum wage.
Cash Wage Requirements for Tipped Employees
With the tip credit, tipped workers had to receive at least $8.65 per hour in direct cash wages in 2019. Employers were responsible for ensuring total earnings met the standard minimum wage through combined wages and tips.
Compliance Obligations for Employers
Posting Requirements and Recordkeeping
Covered employers had to display an official Massachusetts minimum wage poster and keep accurate records of hours worked and wages paid. Records were typically required to be maintained for three years to satisfy state labor audits and investigations.
Overtime and Work Hours
Regular Hours and Double Time Rules
While the focus in 2019 was on the minimum hourly rate, overtime at one and one half times the regular rate after 40 hours remained mandatory. Certain industries with fluctuating workweeks could use alternative calculations under specific agreements.
Industry and Regional Impact
Low Wage Sectors and Small Businesses
Retail, hospitality, and food service sectors saw notable changes as employers adjusted to the $12.00 baseline. Some small businesses implemented modest price adjustments and scheduling improvements to manage payroll costs.
Urban and Suburban Labor Markets
In high cost areas like Boston and Cambridge, the 2019 rate better aligned wages with living expenses, although gaps remained. Workers in neighboring communities often compared job opportunities and commuting tradeoffs based on wage levels and housing costs.
Future Wage Trajectory and Planning
Looking beyond 2019, Massachusetts outlined a clear path to a $15 per hour minimum wage, with annual increases scheduled through 2023. Understanding these steps helped businesses forecast labor costs and workers anticipate rising earnings.
- Verify the official poster and wage rate displayed in the workplace.
- Review timekeeping systems to ensure accurate hour tracking and overtime calculations.
- Train supervisors on tip credit rules and cash wage requirements for tipped staff.
- Maintain employment and payroll records for the required retention period.
FAQ
Reader questions
What was the minimum wage in Massachusetts on January 1, 2019?
The minimum wage increased to $12.00 per hour on January 1, 2019, for most nonexempt workers in Massachusetts.
How did tips affect the minimum wage in 2019?
Employers could take a tip credit of up to $3.35 per hour, requiring tipped workers to earn at least $8.65 per hour in direct cash wages to reach the full minimum wage.
Did small businesses have different rules in 2019?
Small employers and seasonal businesses could use a training wage and specific provisions for younger workers, while still moving toward the full $12.00 rate.
What records were employers required to keep in 2019?
Employers were required to maintain accurate records of hours worked and wages paid, typically for three years, to comply with state labor regulations.