Is There a Small Business Exemption for Minimum Wage Laws?
Under the federal Fair Labor Standards Act ("FLSA"), a business may be exempt from minimum wage requirements if (i) gross sales are less than $500,000 per year; and (ii) the company does not transact business in multiple states.
There is no similar exemption under Massachusetts law, meaning for Massachusetts businesses you still have to pay the state minimum wage regardless of the size of your business.
As a practical matter, this means there is no exemption from the minimum wage for small businesses, because courts will apply Massachusetts state minimum wage if it is more beneficial to the employee than the federal laws.
Learn more here about minimum wage in Massachusetts.
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