Federal and State Overtime Law
Overtime Rules Under Federal and Massachusetts Overtime LawThe federal Fair Labor Standards Act "FLSA") and Massachusetts law contain similar requirements for overtime premium pay, and also imposes a minimum hourly wage for most workers. There are important differences, however, that you should consider when thinking about overtime and minimum wage issues. If an employee is covered by Massachusetts minimum wage or overtime laws and not under the FLSA, they can still recover the state remedies for violations of those laws. If they are exempt under Massachusetts law but non-exempt under the FLSA, they can still recover damages, but (i) the minimum wage required is significantly lower under federal law; and (ii) the federal remedies for employees are not as extensive as the remedies for violation of Massachusetts wage and hour laws.
These differences are explained in more detail below- you can also check out this comparison chart of federal and state exemptions for a quick reference. |
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Overtime Law Violations: State vs. Federal Remedies
Under the FLSA, you can recover up to two years of unpaid overtime, or three if the violation is found to be "willful" on the part of the employer. The court may double your damages as a penalty for the violation, and if you prevail, the employer will have to pay your attorneys' fees.
Violation of the Massachusetts overtime law carries stiffer penalties. First, you can recover three years of unpaid overtime without a finding of willfulness. Second, all damages are subject to tripling, not doubling. Like federal law, if you win your claim the employer will have to pay your attorneys' fees.
For most workers, they are either exempt or non-exempt under either federal or state law, so a Massachusetts employee will generally bring both federal and state claims. If you are exempt under federal law but not Massachusetts law, it makes little practical difference to you as a plaintiff because you can recover under the more generous (Massachusetts) remedies.
There are, however, some cases where a worker is exempt from overtime under Massachusetts law but not federal. Examples include restaurant workers, hotel workers, and employees of gasoline stations (see comparison chart for details, and here for further description). In those cases, a recent decision by the Massachusetts Supreme Judicial Court has clarified that you can bring FLSA claims but are limited to the federal remedies and cannot take advantage of Massachusetts' additional compensation.
Violation of the Massachusetts overtime law carries stiffer penalties. First, you can recover three years of unpaid overtime without a finding of willfulness. Second, all damages are subject to tripling, not doubling. Like federal law, if you win your claim the employer will have to pay your attorneys' fees.
For most workers, they are either exempt or non-exempt under either federal or state law, so a Massachusetts employee will generally bring both federal and state claims. If you are exempt under federal law but not Massachusetts law, it makes little practical difference to you as a plaintiff because you can recover under the more generous (Massachusetts) remedies.
There are, however, some cases where a worker is exempt from overtime under Massachusetts law but not federal. Examples include restaurant workers, hotel workers, and employees of gasoline stations (see comparison chart for details, and here for further description). In those cases, a recent decision by the Massachusetts Supreme Judicial Court has clarified that you can bring FLSA claims but are limited to the federal remedies and cannot take advantage of Massachusetts' additional compensation.
Minimum Wage Laws: State vs. Federal Exemptions
Both the FLSA and Massachusetts law also exempt certain workers from the minimum hourly wage requirement. Again, if you are exempt under federal law but non-exempt under Massachusetts law, as an employee it makes little difference because the Massachusetts minimum wage is higher.
If, however, you are exempt under Massachusetts law but non-exempt under the FLSA, it does make a difference, as currently the federal minimum wage is $7.25 an hour, compared to $14.50 per hour in 2022 and $15.00 hour in 2023 and after in Massachusetts.
There is really only one example of a type of job that could be exempt from Massachusetts minimum wage requirements and not from the FLSA minimum wage. That category is "professional services," which is cited in the Massachusetts statute but not explained in any caselaw interpreting that term.
If, however, you are exempt under Massachusetts law but non-exempt under the FLSA, it does make a difference, as currently the federal minimum wage is $7.25 an hour, compared to $14.50 per hour in 2022 and $15.00 hour in 2023 and after in Massachusetts.
There is really only one example of a type of job that could be exempt from Massachusetts minimum wage requirements and not from the FLSA minimum wage. That category is "professional services," which is cited in the Massachusetts statute but not explained in any caselaw interpreting that term.
Massachusetts Minimum Wage and "Professional Services"
The Massachusetts Minimum Wage Law applies to any worker in an "occupation." "Occupation" is defined in the statute as:
"an industry, trade or business or branch thereof or class of work therein, whether operated for profit or otherwise, and any other class of work in which persons are gainfully employed, but shall not include professional service, agricultural and farm work, work by persons being rehabilitated or trained under rehabilitation or training programs in charitable, educational or religious institutions, work by seasonal camp counselors and counselor trainees or work by members of religious orders. Occupation shall also not include outside sales work regularly performed by outside salesmen who regularly sell a product or products away from their employer's place of business and who do not make daily reports or visits to the office or plant of their employer."
M.G.L. c. 151, section 2 (emphasis added).
All of the other exceptions in this paragraph (agricultural and farm work, seasonal camp workers, outside sales representatives, for example) are also exempted from the federal minimum wage.
"Professional service" has not been clarified in case law interpreting the minimum wage law, but would likely be interpreted similarly to the professional exemption to overtime pay requirements. The overtime analysis requires that:
"an industry, trade or business or branch thereof or class of work therein, whether operated for profit or otherwise, and any other class of work in which persons are gainfully employed, but shall not include professional service, agricultural and farm work, work by persons being rehabilitated or trained under rehabilitation or training programs in charitable, educational or religious institutions, work by seasonal camp counselors and counselor trainees or work by members of religious orders. Occupation shall also not include outside sales work regularly performed by outside salesmen who regularly sell a product or products away from their employer's place of business and who do not make daily reports or visits to the office or plant of their employer."
M.G.L. c. 151, section 2 (emphasis added).
All of the other exceptions in this paragraph (agricultural and farm work, seasonal camp workers, outside sales representatives, for example) are also exempted from the federal minimum wage.
"Professional service" has not been clarified in case law interpreting the minimum wage law, but would likely be interpreted similarly to the professional exemption to overtime pay requirements. The overtime analysis requires that:
- The employee’s primary duty must be the performance of work requiring advanced knowledge. This is defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment.
- The advanced knowledge must be in a field of science or learning.
- The advanced knowledge must be usually acquired by a prolonged course of specialized intellectual instruction.
How Our Employment Lawyers Can Help
We can help you navigate these issues and get clarity on your rights and obligations as an employer or an employee. Read more about some example overtime law cases we have handled. 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.
