Massachusetts Overtime Law: Understanding Your Rights and Obligations
Mastering Massachusetts Overtime LawBoth the federal Fair Labor Standards Act ("FLSA") and Massachusetts overtime law mandate premium overtime pay for hours worked over 40 in a week for non-exempt employees. Overtime rates entitle employees to one and a half times their regular hourly rate for each hour worked beyond 40 hours. Understanding these regulations is crucial for both employers and employees to ensure fair compensation and compliance with the law.
Why Understanding Overtime Rules Is EssentialIt's imperative to grasp the intricacies of overtime regulations because if an employee is owed unpaid overtime, they have the right to pursue legal action and recover two to three times their actual damages. Additionally, employers may be required to reimburse the employee's legal fees. The remedies for overtime violations differ between federal and state law, so it's vital to discern which law applies to your situation.
Exempt vs. Non-Exempt Employees: Who Qualifies for Overtime?Determining who is exempt from overtime can be complex. To be considered exempt, an employee must meet three criteria:
Exempt Definition: The Salary Basis TestWhile being paid on a salary basis is an essential threshold for exemption, it's not the sole determinant. If an employee's pay is consistent week to week despite varying hours worked, they are likely paid on a "salary basis." Regularly docking pay for missed hours or days may disqualify the employee from this classification.
Exempt Definition: Minimum Salary RequirementThe minimum salary requirement increased in 2020, making it essential to monitor whether employees still meet this criterion. If an employee earns less than $35,568 annually and isn't paid overtime, they may have a valid claim.
Exempt Definition: What Are Exempt Duties?Exemptions are categorized into three main types: professional, executive, and administrative. These categories encompass a wide range of job roles, but determining eligibility can be intricate. Read more about exempt and non-exempt duties.
Overtime Rules for Highly Compensated EmployeesHighly compensated employees earning $107,432 or more in total compensation are considered exempt, provided they regularly perform recognized exempt duties. Prior to 2020, the threshold was $100,000. Salary contributes to this threshold, but additional compensation can come from commissions, bonuses, or other payments.
What it Means to Be Non-ExemptBeing classified as non-exempt means you're entitled to 1.5 times your regular rate of pay for hours worked beyond 40 in a week, even if you don't formally track your hours.
Furthermore, under new Massachusetts law, you can't be held to a non-compete agreement if you're classified as non-exempt. This applies to non-compete agreements signed on or after October 1, 2018. |
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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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Whether you're an employer seeking to understand your obligations or an employee wanting to ensure your rights are protected, our expert resources and guidance will help you navigate Massachusetts overtime law effectively. 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.