Federal and State Overtime Law
Navigating Federal and Massachusetts Overtime RegulationsUnderstanding overtime regulations is crucial for businesses, especially when it comes to federal and Massachusetts state laws. While these laws share some similarities, there are important distinctions that can impact your obligations as an employer. This knowledge is not only essential for compliance but also for mitigating potential legal risks.
State vs. Federal Overtime Violations: Know the DifferencesUnder the Fair Labor Standards Act (FLSA), you can be liable for up to two years of unpaid overtime, or three if the violation is deemed "willful." Courts may double your damages, and prevailing employees are entitled to have their attorneys' fees covered.
In contrast, Massachusetts overtime law carries more stringent penalties. Employees can recover three years of unpaid overtime without the requirement of willfulness, and all damages can be tripled, not just doubled. Similar to federal law, prevailing employees in Massachusetts can have their legal fees covered by their employers. Most workers fall into either the exempt or non-exempt category under both federal and state law. Generally, Massachusetts employees will bring forth both federal and state claims. Even if you are exempt under federal law but non-exempt under Massachusetts law, you'll still be entitled to the more generous Massachusetts remedies. However, certain scenarios, like those involving restaurant, hotel, or gasoline station employees, may result in employees being exempt from Massachusetts law but not federal law. You can see the important distinctions in this comparison chart. In such cases, recent decisions by the Massachusetts Supreme Judicial Court have clarified that employees can bring FLSA claims but are limited to federal remedies, forfeiting Massachusetts' additional compensation. Minimum Wage Laws: Federal vs. Massachusetts ExemptionsBoth FLSA and Massachusetts law also offer exemptions to certain workers from the minimum hourly wage requirement. If you are exempt under Massachusetts law but non-exempt under the FLSA, this discrepancy becomes significant. Currently, the federal minimum wage is $7.25 per hour, compared to $14.50 per hour in 2022 and $15.00 per hour in 2023 and beyond in Massachusetts.
One example where Massachusetts law might differ from the FLSA is in "professional services." The Massachusetts Minimum Wage Law exempts individuals in "professional service" occupations, a term not explicitly defined in case law or the statute. However, this exemption is likely to be interpreted similarly to the professional exemption in overtime pay requirements. To qualify, employees' primary duties must involve work demanding advanced knowledge, predominantly intellectual in character, requiring consistent exercise of discretion and judgment, typically acquired through specialized intellectual instruction. Most individuals fitting the "professional" category are already compensated above minimum wage. However, this exemption may become relevant in situations like startups, where professionals may agree to work without pay temporarily, or in exchange for equity. In such cases, the interpretation of "professional services" will determine whether they can seek compensation for their work. |
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Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as a Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year. She has written a book on employment law: Rules of the Road, What You Need to Know About Employment Laws in Massachusetts, and helped thousands of clients on both the employee and employer side with issues relating to wage and hour laws, including overtime pay, late or unpaid wages or commissions, employee misclassification, and retaliation against employees asserting rights under the wage and hour laws.
Rebecca Rogers: Rebecca is a 2006 graduate of Boston College Law School, and has worked with slnlaw since 2013. She previously worked as an intellectual property litigation attorney for Fish & Richardson in Boston, Massachusetts, and clerked for the Massachusetts Supreme Judicial Court. Rebecca has helped clients with wage and hour disputes, including employee misclassification, late or unpaid wages or commissions, retaliation under the Wage Act, and advice to both employees and employers about wage and hour law compliance.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna has helped clients assess their rights under the wage and hour laws, including employee misclassification, untimely payment of final wages, late or unpaid commissions, retaliation, and advice to small business owners about wage and hour law compliance.
Elijah Bresley: Eli is a 2014 graduate of Seton Hall Law school, and has worked with slnlaw since 2020. He previously worked for a boutique employment law firm outside of Boston, and then for the Labor and Employment department of a large Boston firm. He also spent a year clerking for the judges of the Superior Court in Hartford, Connecticut. Eli has helped clients with wage and hour claims, including late or unpaid commissions, retaliation, employee misclassification, and overtime, and litigated these claims in state and federal courts. He also advises employers about employment policies and wage and hour compliance.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped clients with multiple wage and hour issues, including retaliation, misclassification, and late or unpaid wages or commissions, and litigated these claims in state and federal courts.
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Our expert team specializes in navigating complex labor laws, ensuring your business stays compliant with both federal and Massachusetts overtime regulations. We provide tailored solutions to help you protect your interests while meeting legal requirements. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
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