Massachusetts Overtime Law for Employers
Massachusetts Overtime Law for Employers: Your Guide to Compliance
Welcome to our comprehensive guide on Massachusetts overtime laws for employers. Understanding these regulations and exemptions is crucial for businesses to avoid legal complications and ensure fair compensation practices. In this guide, we'll provide you with a detailed overview of key aspects related to overtime laws in Massachusetts.
Federal and State Overtime Laws
Both the federal Fair Labor Standards Act (FLSA) and Massachusetts state law require employers to pay premium overtime rates to non-exempt employees for hours worked beyond 40 in a week. This rate is one and a half times the employee's regular hourly rate, covering various work-related activities, including some forms of employee travel time.
Exemptions and Important Thresholds
It's essential to recognize the exemptions under both federal and state law, as they determine which employees are eligible for overtime pay. Here are some key considerations:
Overtime Rules for Highly Compensated Employees
Highly compensated employees are those earning $107,432 or more in total compensation, with at least $684 per week in salary. They are considered exempt if they regularly perform certain exempt duties. This threshold was raised from $100,000 in 2020.
Implications of Non-Exempt Status
If any of your employees are non-exempt, several important considerations come into play:
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