Understanding the Tipped Minimum Wage Rules in Massachusetts
Minimum Wage Rules for Tipped WorkersEmployees who frequently receive tips as a significant portion of their earnings are eligible for a reduced minimum wage rate. This practice acknowledges that tips contribute significantly to their income, allowing for a lower hourly wage. The current tipped minimum wage stands at $6.75 per hour. Gaining a thorough understanding of the regulations surrounding tipped minimum wage is crucial to ensuring fair compensation for these workers.
Meeting the Minimum Wage RequirementDespite the lower hourly wage, employers must ensure that the combination of hourly wages and tips amounts to at least the standard minimum wage, which currently stands at $15.00 per hour in Massachusetts. Employers are responsible for tracking tipped workers' tips or contributions to tip pools. If any tipped employee falls short of the state-required minimum wage, their hourly wage must be adjusted accordingly. Violations of this requirement can lead to legal action under Massachusetts minimum wage law.
Understanding Tip PoolingMany employers in the restaurant industry implement tip-sharing policies to ensure fair compensation among staff members who interact with customers. However, these arrangements must comply with specific rules to avoid improper diversion of tips. According to Massachusetts law, only waitstaff, service employees (e.g., busboys), and service bartenders are eligible to participate in tip pools. Service bartenders provide drinks to waitstaff, while bartenders serving customers directly are not part of the tip pooling regulations.
Importantly, tipped employees cannot be compelled to share their tips with managers, hosts/hostesses, or kitchen staff. Employers are also prohibited from retaining any portion of tips designated for service staff. No Exemption Through AgreementsEven if an employee consents to an alternate pay structure, employers are still obligated to compensate tipped employees in accordance with the law. The tip pooling statute explicitly states that no special contract can exempt an employer from complying with this requirement. Therefore, even if there is a signed agreement to share tips with non-service staff, it is likely to be considered unlawful.
Full Application of Other Wage and Hour LawsTipped workers are subject to the same wage and hour laws as other employees, except for the lower minimum wage. This includes adherence to timely wage payments, proper payment of earned wages upon termination, meal break regulations, overtime pay obligations, and compliance with the Massachusetts Earned Sick Time Law. Employers with 11 or more employees in the restaurant industry must pay for sick time accrued under the law.
Enforcement of Tipped Minimum WageThe Massachusetts Attorney General holds the authority to enforce wage and hour laws, including those that apply to tipped workers. Employees who are owed wages can also initiate private lawsuits after filing a complaint with the Attorney General's office, which will issue a right-to-sue letter upon request. While the Attorney General may choose to investigate complaints, employees often pursue remedies in court.
It's essential to note that employers cannot take adverse action against employees who raise concerns about wage nonpayment, including issues related to tip pooling arrangements. Explore more about how to respond to employee complaints regarding wages and compensation. |
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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.
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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 expertise can guide you through the intricacies of tipped minimum wage laws, helping you navigate compliance and ensure that tipped employees receive the compensation they deserve. 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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