Mass-Peculiarities: An Employers Guide to Wage & Hour Law in the Bay State 2022 Edition

© 2022 Seyfarth Shaw LLP Massachusetts Wage & Hour Peculiarities, 2022 ed. | 1 Introduction The Commonwealth’s wage and hour laws continue to create challenges for employers that operate in the state. With a patchwork of arcane and complex statutes that impose many non- intuitive requirements, Massachusetts laws far exceed the scope of federal law. Included in these laws are, for example, the so-called “Blue Laws,” an antiquated and convoluted set of restrictions dating back to colonial days; a minimum wage and overtime law that differs in important respects from federal law; possibly the most complex tip statute in the country; and a more narrowly defined constriction in the use of independent contractors than under federal and other state laws. Since the publication of the fourth edition, courts have interpreted these statutes in new ways, broadening the protections for employees and increasing employer obligations. For example, the Supreme Judicial Court’s decision in Sullivan v. Sleepy’s LLC has led to a wave of putative class actions by employees compensated only by commissions. At the same time, the plaintiffs’ bar continues to press the envelope as to what forms of compensation are wages within the meaning of the Wage Act, which carries with it mandatory treble damages. The dynamic nature of this area of the law creates significant challenges for employers, particularly given the risk of triple damages for violations. Understanding the legal landscape in Massachusetts is a business necessity; in the context of a class action lawsuit, even an inadvertent violation could provide a windfall recovery to employees at catastrophic expense to an employer. This publication provides a comprehensive summary of Massachusetts wage and hour laws, including an analysis of the significant court decisions and regulatory authorities interpreting those laws and, where applicable, the ways in which they differ from federal law. In so doing, it is our goal to assist in-house counsel and human resources professionals in identifying policies and practices that may expose their Massachusetts business to risks that may be significantly reduced or avoided altogether. This edition covers the period through February 2022 and incorporates thoughts and comments we have received on prior editions. As always, we welcome your suggestions for our next edition, as we strive to provide the most user-friendly, helpful guide to the business community on these complex laws.