Do All Employers Have to Pay the Overtime Premium?
In Massachusetts, essentially yes.
The federal Fair Labor Standards Act ("FLSA") does not apply to all employers, but as a practical matter its reach is broad. If your business has at least two employees and annual gross revenue of $500,000 or more (or if you are a hospital, school, or government agency), the FLSA requirements apply to you as a "covered enterprise." Even if you don't meet those criteria, your employees may still be covered as individuals if they are "engaged in commerce or in the production of goods for commerce."
Even if those broad categories don't cover you, remember that Massachusetts has its own state laws requiring overtime pay, which have no such limitations on what employers are covered. The premium pay required is the same- 1.5 times the regular rate of pay.
Learn more here about overtime law in Massachusetts.
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