Understanding Massachusetts Sunday Premium Laws

Massachusetts Sunday Premium Pay Laws

The Massachusetts "blue laws" originally prohibited many businesses from operating on Sundays. Over the years, many exceptions have been put into place. The practical result that most businesses can operate lawfully on Sundays and holidays.

Massachusetts retail businesses, however, are still required to pay employees extra for work performed on Sundays and holidays. This premium pay requirement originally matched the overtime rate of pay. Employees were to be paid at 1.5 times their regular rate of pay for Sunday and holiday work.

These premium pay rates are now scheduled to phase out as the minimum wage increases. The scheduled phase out is below:

2019: Sunday premium pay rate is 1.4 times the employee's regular rate of pay.
2020: Sunday premium pay rate is 1.3 times the employee's regular rate of pay.
2021: Sunday premium pay rate is 1.2 times the employee's regular rate of pay.
2022: Sunday premium pay rate is 1.1 times the employee's regular rate of pay.
2023: Sunday premium pay rate is phased out entirely.

The phase out of Sunday premium pay is part of the "grand bargain" reached in 2018 which gradually raises the minimum wage to $15.00 per hour in 2023. For employees, this means that even though your rate of pay for Sundays is gradually decreasing, your rate of pay for all other hours is gradually increasing.

Which Employers Have to Pay Sunday Premiums

Generally, all retail establishments are required to pay extra for work on a Sunday. You do not have to pay if you have seven (7) or fewer employees. You also do not have to pay extra to workers who are properly exempt from overtime and work on a Sunday. In most cases, businesses cannot require an employee to work on Sunday.

Holiday Premium Pay

If an employer is required to pay Sunday premium pay, these requirements also apply to certain holidays. These are:

New Years Day
Memorial Day
Independence Day
Labor Day
Columbus Day after noon
Veterans Day after 1:00 pm

Other holidays are unrestricted. This means businesses may open and are not subject to premium pay requirements. These are:

Martin Luther King Day
Presidents Day
Evacuation Day
Patriots Day
Bunker Hill Day

Sunday Premium Pay and Overtime

All non exempt employees must be paid time and a half for work in excess of 40 hours a week. This applies whether or not they work on Sundays. If an employee works on a Sunday, the premium pay applies even if they have not worked over 40 hours in that week.

If the work on Sunday is also over 40 hours, the Sunday premium pay is credited toward overtime. In other words, you are not required to pay both the Sunday premium and the overtime premium for the same hours worked.

Before the law changed, Sunday pay and overtime pay were identical and 1.5 times the regular rate of pay. As the Sunday premium phases out, employers will have to make sure that hours over 40 are fully compensated at the overtime rate for non-exempt employees.

Sunday Premium Pay and Commission Based Employees

Many employers historically have not paid their commissioned inside sales employees premium pay for Sunday work. Recently the Massachusetts Supreme Judicial Court held that these employees must still be paid premium pay.

The employer in that case paid a draw against commissions that was intended to cover both minimum wage and any applicable overtime or Sunday premium. The court disagreed with that compensation method. Instead, the employer was required to pay 1.5 times the minimum wage for Sunday work in addition to the commissions earned by the sales employees.

Although this decision specifically addressed Sunday premium pay, the same logic applies to the treatment of overtime hours for non-exempt commission based employees.

Many retail businesses have employees who are paid on a commission basis. These employees frequently work on Sundays because Sundays are a popular shopping day. This means many Massachusetts employers are going to have to review and probably revise their commission plans to ensure compliance with Sunday pay and overtime laws.

Day of Rest Rules

In addition to the Sunday premium laws, many employers are required to give employees one 24 hour period off in seven days. If an employee works on a Sunday, they also must be given a 24 hour period off within the following six days.

There are exceptions to this, which can be difficult to understand. if you have employees scheduled for more than six days in a row, you should consult an employment lawyer to be sure you are in compliance with this rule. Similarly, if you have employees who work Sundays, you should make sure that either their work week ends on the following Friday, they have another day off during the week, or that you are within one of the exemptions to this rule.

How are the Premium Pay Laws Enforced?

Like the other wage and hour laws, the Massachusetts Attorney General has authority to enforce the premium pay laws. An employee who is owed wages under the act can also bring a private lawsuit. The employee must first file a complaint with the Attorney General's office, which will provide a right to sue letter on request.

The Attorney General can decide to investigate a complaint at any time. Most commonly, however, it will leave it to the employee to pursue a remedy in court. Remember that if the employee does bring a private lawsuit and wins, the employer will have to pay not only triple damages but the employee's attorneys fees as well.

Employers should remember that it is unlawful to take action against an employee for complaining about nonpayment of wages. Read more about responding to an employee complaint about wages and pay.

How We Can Help

We can help you navigate these issues and get clarity on your rights and obligations as an employer or an employee. You can use the button below to schedule a call back from a member of our team, give us a call at 781-784-2322, or fill out our web form to let us know a little more about your situation.

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