Employer’s Take Heed – MA Minimum Wage Law Will Take Effect January 1, 2015

minimum wageEmployer’s take heed – the impending minimum wage law in MA will take effect on January 1, 2015. What does that mean for your business?  Over a three year period, the phase-in to the minimum wage law will require you to increase wages first from $8.00 to $9.00 which requires bumping up wages for workers who currently earn just a bit more than the minimum wage.

  • Is it time to review your company’s salary structure?  What benchmarks do you have in place?

To classify a benchmark job, data is compiled from appropriate salary surveys to determine the median salary rate for the job. The job is then “slotted” into the salary grade with a grade midpoint that is closest to the median salary reported in the surveys.

Making pay decisions can be a function of Human Resources. Often payroll surveys and internal measures can help determine what is appropriate for your organization.

Not all jobs will receive a benchmark.  Often non-benchmark jobs are those for which valid and reliable salary survey data is not available. They may be jobs that are unique to your organization. Sometimes they could be jobs that simply can’t be accurately matched to comparable positions in published surveys.

You must comply with the three year implementation of the MA minimum wage law which requires employers to pay $10 per hour on January of 2016 and $11.00 per hour in January of 2017.

This may be a good time to ask Human Resources professional for some help!

  • Are your exempt and non-exempt employees classified properly? Do you have contractors on board?

Misclassifying workers can lead to significant civil and criminal penalties under both federal and Massachusetts law, including monetary fines and imprisonment.

So, employers should take heed – watch deadlines, get your “new” labor posters hung and call for a consult before paying fines.  You may refer here for a direct link to the changes in the law.

Leave a Comment