🇺🇸 MASSACHUSETTS STATE LAW – 2026 UPDATE

Massachusetts Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in Massachusetts

Massachusetts remote work laws and employment regulations guide

Table of Contents

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Overview

Massachusetts is generally considered highly worker-protective in its approach to employment regulation. According to official state sources, Massachusetts has implemented comprehensive employment protections that often exceed federal minimum standards in several areas.

General Characteristics (as of December 2025):

  • State minimum wage: $15.00/hour (effective since January 1, 2023)
  • Paid sick leave: Generally required for employers with 11 or more employees (paid); employers with fewer than 11 employees must provide unpaid sick leave
  • State income tax: Progressive tax structure (generally 5% flat rate as of 2025, with additional 4% surtax on income over $1 million)
  • Meal/rest breaks: Generally required for shifts exceeding 6 hours (30-minute meal break)
  • Overtime rules: Generally follows federal FLSA standard (1.5x after 40 hours/week)
  • Workers’ compensation: Generally required for most employers
  • Sunday/holiday premium: Eliminated as of January 1, 2023 (previously required premium pay)

Note: These are general starting points only. Specific applicability depends on many factors including employer size, industry, job classification, and individual circumstances. Laws and regulations change frequently. Consult official sources and legal counsel for guidance on specific situations.

Source: Massachusetts Department of Labor Standards – https://www.mass.gov/orgs/department-of-labor-standards
Source: Massachusetts Attorney General’s Office – https://www.mass.gov/orgs/office-of-the-attorney-general

Remote Work Context:
Employment laws in Massachusetts generally apply based on where work is physically performed, not where the employer is located. Workers performing services from a location within Massachusetts would typically be subject to Massachusetts employment laws. However, specific applications can vary by law and circumstance. Employers with remote workers should consult legal counsel familiar with Massachusetts employment law and multi-state employment issues.

Official State Agency Information

The Massachusetts Attorney General’s Office Fair Labor Division and the Massachusetts Department of Labor Standards are the primary state agencies administering employment laws in Massachusetts.

Massachusetts Attorney General’s Office – Fair Labor Division:

  • Website: https://www.mass.gov/orgs/office-of-the-attorney-general
  • Fair Labor Hotline: (617) 727-3465
  • Hours: Monday-Friday, 10 a.m. – 4 p.m.
  • Address: One Ashburton Place, Boston, MA 02108
  • Online Complaint Filing: Available through Mass.gov website
  • Languages: Services available in multiple languages

Massachusetts Department of Labor Standards:

Note: These agencies can provide official interpretations of state law and guidance on compliance matters. For legal advice on how laws apply to your specific situation, consult a licensed attorney in Massachusetts.

Source: Massachusetts Department of Labor Standards contact information – https://www.mass.gov/info-details/department-of-labor-standards-contact-information

Major State Employment Statutes

The following statutes are commonly cited in employment matters in Massachusetts. This is general information only and does not constitute legal interpretation.

1. Massachusetts Minimum Fair Wage Law

Statutory Citation: Massachusetts General Laws Chapter 151, Sections 1-22
Official Source: https://www.mass.gov/info-details/massachusetts-law-about-minimum-wage

General Provisions (as stated in the statute):

According to the Massachusetts Department of Labor Standards, the Minimum Fair Wage Law generally addresses:

  • Minimum wage requirements for most employees in Massachusetts
  • Overtime compensation standards for non-exempt employees
  • Service rates (tipped minimum wage) for qualifying service employees
  • Payment frequency and timing requirements
  • Recordkeeping obligations for employers
  • Enforcement mechanisms and penalties for violations

Current Standards (as of December 2025):

  • Regular minimum wage: $15.00/hour (effective January 1, 2023)
  • Service rate for tipped employees: $6.75/hour (tips must bring total to at least $15.00/hour)
  • Overtime rate: Generally 1.5x regular rate for hours over 40 in a workweek

Application to Remote Work:
These provisions generally apply based on where work is physically performed. Workers performing services from locations within Massachusetts would typically be subject to Massachusetts minimum wage standards. Specific applicability depends on multiple factors including employment relationship, job duties, and exemption status. Consult the Massachusetts Attorney General’s Fair Labor Division or legal counsel for guidance on particular situations.

Source: Massachusetts General Laws c. 151 – https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151
Source: Minimum wage and overtime information – https://www.mass.gov/info-details/minimum-wage-and-overtime-information

2. Earned Sick Time Law

Statutory Citation: Massachusetts General Laws Chapter 149, Sections 148C and 148D
Effective Date: July 1, 2015
Official Source: https://www.mass.gov/info-details/earned-sick-time

General Overview:

According to the Massachusetts Attorney General’s Office, this law generally establishes:

  • Most employees in Massachusetts may earn and use up to 40 hours of job-protected sick time per year
  • Accrual rate of at least 1 hour of sick time for every 30 hours worked
  • Employers with 11 or more employees must generally provide paid sick time
  • Employers with 10 or fewer employees must generally provide sick time, which may be unpaid
  • Protections against retaliation for using earned sick time

Coverage typically includes:

  • Full-time, part-time, seasonal, per diem, and temporary employees
  • Employees working for private and nonprofit employers in Massachusetts

Exemptions may include:

  • Certain categories of employees as defined in statute and regulations
  • Employees covered by qualifying collective bargaining agreements

Note: Actual coverage and obligations depend on specific circumstances including employer size, employee classification, and hours worked. Employers should consult official agency guidance at https://www.mass.gov/info-details/earned-sick-time and consider consultation with legal counsel.

Source: Massachusetts Earned Sick Time Law (M.G.L. c. 149, § 148C) – https://www.mass.gov/doc/earned-sick-time-law-mgl-c-149-sec-148c
Source: Earned Sick Time Regulations (940 CMR 33.00) – https://www.mass.gov/doc/earned-sick-time-regulations-940-cmr-3300-et-seq

3. Independent Contractor Law

Statutory Citation: Massachusetts General Laws Chapter 149, Section 148B
Official Source: https://www.mass.gov/info-details/independent-contractors-0

General Framework:

According to Massachusetts law, individuals performing services are presumed to be employees unless the hiring entity can demonstrate that all three prongs of the “ABC test” are satisfied. The statute generally provides that an individual performing services may be considered an independent contractor if:

Part A – Freedom from Control:
The individual is free from control and direction in connection with the performance of the service, both under the contract for performance of service and in fact.

Part B – Outside Usual Course of Business:
The service is performed outside the usual course of the business of the employer.

Part C – Independently Established Trade:
The individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed.

Critical Note: All three prongs must be satisfied for independent contractor status. Failure to meet any single prong generally results in the individual being classified as an employee under Massachusetts law.

Consequences of Misclassification:
According to official sources, employers who misclassify employees as independent contractors may face:

  • Criminal enforcement actions
  • Civil penalties
  • Back payment of wages and benefits
  • Tax liabilities
  • Additional damages under Massachusetts wage laws

⚠️ Important: Worker classification has significant legal and tax implications. The Massachusetts Attorney General’s Office actively enforces classification standards. Employers and workers should consult legal counsel and tax professionals before making or accepting classification determinations.

Source: Massachusetts General Laws c. 149, § 148B – https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section148B
Source: Attorney General’s Advisory on Independent Contractor Law – https://www.mass.gov/info-details/independent-contractors-0

4. Workers’ Compensation Law

Statutory Citation: Massachusetts General Laws Chapter 152
Administering Agency: Massachusetts Department of Industrial Accidents (DIA)
Official Source: https://www.mass.gov/orgs/department-of-industrial-accidents

Agency Contact Information:

General Overview:

According to Massachusetts statute, the workers’ compensation system generally:

  • Requires most employers in Massachusetts to carry workers’ compensation insurance
  • Provides benefits to employees for work-related injuries and illnesses
  • Covers medical treatment, wage replacement, and disability benefits
  • Operates on a no-fault basis (fault generally not relevant to coverage)
  • Applies to injuries that “arise out of and in the course of employment”

Coverage Generally Required For:

  • Most employers with one or more employees
  • Various categories of workers as defined in statute

Note: Workers’ compensation coverage determinations are complex and fact-specific, particularly for remote workers. The Massachusetts Department of Industrial Accidents makes official determinations based on complete factual circumstances. Employers should consult DIA and legal counsel regarding coverage obligations.

Source: Massachusetts General Laws c. 152 – https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter152
Source: Employer’s guide to the Massachusetts workers’ compensation system – https://www.mass.gov/orgs/department-of-industrial-accidents

5. Fair Employment Practices Law

Statutory Citation: Massachusetts General Laws Chapter 151B
Administering Agency: Massachusetts Commission Against Discrimination (MCAD)
Official Source: https://www.mass.gov/orgs/massachusetts-commission-against-discrimination

Agency Contact Information:

General Overview:

According to the statute and MCAD guidance, Chapter 151B generally prohibits discrimination in employment on the basis of:

  • Race, color, religious creed, national origin, ancestry
  • Sex, gender identity, sexual orientation
  • Age (40 and over)
  • Genetic information
  • Military service or status
  • Disability (mental or physical)

Protected Activities May Include:

  • Hiring, firing, compensation, terms and conditions of employment
  • Harassment creating a hostile work environment
  • Retaliation for asserting rights under the law

Application to Remote Work:
Anti-discrimination protections generally apply to remote workers in the same manner as on-site workers. Location of work performance does not affect coverage under Massachusetts discrimination law. Specific applications may vary by circumstance. Consult MCAD or legal counsel for guidance.

Source: Massachusetts General Laws c. 151B – https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151B
Source: MCAD Guidelines and Policies – https://www.mass.gov/orgs/massachusetts-commission-against-discrimination

Additional Relevant Laws

Paid Family and Medical Leave:

Domestic Workers Bill of Rights:

Blue Laws (Sunday and Holiday Work):

Employee Classification Standards in Massachusetts

Massachusetts Independent Contractor Law Overview

Legal Presumption:
According to Massachusetts General Laws Chapter 149, Section 148B, all individuals performing services for an employer are presumed to be employees unless the employer can prove that all three prongs of the “ABC test” are satisfied.

Statutory Authority: M.G.L. c. 149, § 148B
Official Guidance: Massachusetts Attorney General’s Office – https://www.mass.gov/info-details/independent-contractors-0

What This Generally Means:

  • The burden of proof is on the employer (or hiring entity) to demonstrate independent contractor status
  • All three parts of the test must be satisfied
  • Failure to meet any single prong generally results in employee classification under Massachusetts law
  • The test applies to wage and hour laws, unemployment insurance, and certain other contexts

Note: This is one of the most stringent classification standards in the United States. Massachusetts courts and agencies have interpreted the test strictly. Classification decisions should never be made without professional legal guidance.

The Massachusetts ABC Test – General Framework

According to M.G.L. c. 149, § 148B and interpretive guidance from the Massachusetts Attorney General’s Office, an individual performing services may be considered an independent contractor only if the employer demonstrates that all of the following are true:

PRONG A: Freedom from Control and Direction

Statutory Language (paraphrased):
The individual is free from control and direction in connection with the performance of the service, both under the contract for performance of service and in fact.

General Description:
According to official guidance and case law, this prong generally examines whether the hiring entity exercises control over how, when, and where the work is performed. Factors that may be relevant include:

Considerations that may be examined (based on official guidance and case precedent):

  • Whether the hiring entity dictates work methods, procedures, or schedules
  • Whether the individual determines their own work hours and schedule
  • Whether the hiring entity provides training or detailed instructions
  • Whether the individual uses their own tools, equipment, and workspace
  • Whether the hiring entity supervises or reviews work in progress
  • Whether the individual has discretion in how to accomplish the work
  • Whether there are performance standards or quality control requirements

⚠️ Important Limitations:

  • No single factor is determinative
  • The analysis examines both contractual terms and actual practice
  • What matters is the actual working relationship, not how parties label it
  • Courts examine the totality of circumstances

Illustrative Scenario 1 (Educational Purpose Only):

Context: A software development company hires a programmer to work on a specific project. The programmer works from home. The company provides detailed specifications for the code, requires daily check-ins, provides access to company systems, sets work hours of 9 AM – 5 PM, and reviews code submissions before acceptance.

General Observations:
This scenario may share characteristics commonly associated with employee relationships based on factors such as:

  • Detailed specifications and daily check-ins may indicate control over work methods
  • Set work hours may indicate control over when work is performed
  • Review and approval processes may indicate ongoing supervision

However, other factors not described here could affect the analysis. Additional considerations might include:

  • Whether the programmer can refuse assignments
  • Whether the programmer works for multiple clients
  • Whether the programmer provides services to the general public
  • The nature of the business relationship

Actual classification depends on:

  • Complete factual circumstances
  • Analysis under all three prongs of the ABC test
  • Official determination by Massachusetts authorities or courts
  • Evaluation by licensed legal counsel familiar with the specific situation

Illustrative Scenario 2 (Educational Purpose Only):

Context: A consulting firm engages a marketing consultant with an established business serving multiple clients. The consultant proposes their own strategies, works from their own office, uses their own equipment, sets their own schedule, invoices monthly, and maintains their own marketing business with other clients.

General Observations:
This scenario may share certain characteristics that could potentially be examined favorably under Prong A, such as:

  • The consultant appears to maintain discretion over work methods
  • The consultant appears to control their own schedule and work location
  • The consultant uses their own resources

However, this analysis addresses only Prong A. All three prongs must be satisfied for independent contractor status. Additional factors not described here could significantly affect the outcome, including:

  • Whether the services performed are within the usual course of the hiring entity’s business (Prong B)
  • Whether the consultant maintains an independently established business (Prong C)
  • The actual degree of control exercised in practice versus contract
  • Many other circumstance-specific factors

PRONG B: Outside the Usual Course of Business

Statutory Language (paraphrased):
The service is performed outside the usual course of the business of the employer.

General Description:
According to Massachusetts Attorney General guidance and case law, this prong generally examines whether the service being performed is part of the hiring entity’s regular business operations or is merely incidental to the business.

Attorney General’s Office Guidance:
In a 2008 Advisory, the Massachusetts Attorney General’s Office stated it “will consider whether the service the individual is performing is necessary to the business of the employing unit or merely incidental in determining whether the individual may be properly classified” as an independent contractor.

Considerations that may be relevant (based on official guidance and case law):

  • Whether the service is integral to the hiring entity’s regular operations
  • Whether the service forms a regular and continuing part of the business
  • Whether customers would view this service as part of what the business provides
  • Whether the business could operate without this type of service
  • Whether the service is core to the business model or auxiliary/peripheral

Examples from Attorney General Guidance:

Example A (from official AG guidance):
A drywall company cannot generally classify someone installing drywall as an independent contractor because installing drywall is within the usual course of a drywall company’s business.

Example B (from official AG guidance):
An accounting firm might be able to classify someone moving furniture as an independent contractor because moving furniture is generally outside the usual course of an accounting firm’s business.

⚠️ Note: These examples are simplified illustrations from official guidance. Actual determinations require analysis of all three prongs and complete factual circumstances.

Case Law Example (for educational context):

In Athol Daily News v. Division of Employment and Training, 439 Mass. 171 (2003), the Massachusetts Supreme Judicial Court examined newspaper carriers. The court held that delivering newspapers to subscribers was within the “usual course of business” of a newspaper because delivery services formed a “regular and continuing part” of the newspaper’s business.

What this case generally indicates:
Services that are integral to how a business operates and delivers value to customers are more likely to be found within the usual course of business, even if performed by workers labeled as independent contractors.

Illustrative Scenario (Educational Purpose Only):

Context: A law firm engages an attorney to handle client cases, bill under the firm’s name, use the firm’s office space, and represent clients as part of the firm’s legal services.

General Observations:
This scenario may share characteristics that could indicate the service is within the usual course of business because:

  • Providing legal services is the core function of a law firm
  • Handling client cases is integral to the firm’s business model
  • The service is what customers expect when engaging the law firm

However, the legal profession has unique licensing and regulatory considerations. Professional relationships may be subject to additional rules and analysis.

PRONG C: Independently Established Trade, Occupation, Profession, or Business

Statutory Language (paraphrased):
The individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed.

General Description:
According to case law and official guidance, this prong generally examines whether the individual has their own independent business offering similar services to others, not just to the hiring entity.

Factors that may be considered (based on case law):

  • Whether the individual maintains a business location separate from the hiring entity
  • Whether the individual advertises or markets their services to the general public
  • Whether the individual has multiple clients or customers
  • Whether the individual has made investments in their own business (equipment, tools, facilities)
  • Whether the individual holds themselves out as being in business to serve others
  • Whether the individual has business licenses, insurance, or other business infrastructure
  • Whether the individual can realize a profit or suffer a loss from their business
  • Whether the business relationship with the hiring entity is ongoing or project-based

⚠️ Important Notes:

  • Forming an LLC or corporation alone does not satisfy this prong
  • Having a business entity but working exclusively for one client may fail this test
  • The individual must demonstrate they are customarily engaged in an independent business
  • The business must be of the same nature as the services being performed

Illustrative Scenario 1 (Educational Purpose Only):

Context: A graphic designer maintains a design studio, has a business website, serves 15 different clients throughout the year, carries business liability insurance, owns professional design equipment and software, invoices clients, and takes on project work from various companies including the hiring entity.

General Observations:
This scenario may share certain characteristics that could be examined under Prong C, such as:

  • Multiple clients may indicate an independently established business
  • Investment in equipment and insurance may indicate business infrastructure
  • Marketing to the general public may indicate holding oneself out as in business
  • Project-based work for multiple entities may indicate independent business operation

However, Prong C alone does not establish independent contractor status. All three prongs must be satisfied. Additional analysis would be required for Prongs A and B, and many other factors not described here could affect the outcome.

Illustrative Scenario 2 (Educational Purpose Only):

Context: An individual forms an LLC and provides services exclusively to one company under a contract labeled “independent contractor agreement.” The individual does not advertise services, has no other clients, does not carry business insurance, and works full-time hours for the single company.

General Observations:
This scenario may share characteristics that could raise questions under Prong C, such as:

  • Exclusive relationship with one client may not demonstrate customary engagement in independent business
  • Lack of other clients may indicate dependence on single employer
  • Absence of marketing or business development may indicate lack of independent business
  • Full-time hours for one entity may indicate employment relationship

The presence of an LLC alone generally does not establish independent contractor status if the individual is not customarily engaged in an independent business.

Special Considerations for Remote Workers

⚠️ ADDITIONAL COMPLEXITY: Classification of remote workers may involve additional considerations beyond the standard ABC test analysis.

General Observations (not legal conclusions):

Remote work arrangements do not change the fundamental legal test, but may affect how factors are analyzed:

Control and Direction (Prong A):

  • Remote supervision methods (video monitoring, software tracking, check-ins)
  • Whether remote worker has discretion over when and how to work
  • Whether technology enables or limits worker autonomy
  • Whether remote work is truly independent or closely managed

Usual Course of Business (Prong B):

  • Physical location does not change whether service is core to business
  • Remote performance of core business functions still generally within usual course
  • Example: Remote customer service representative for customer service company would typically be within usual course of business

Independent Business (Prong C):

  • Whether remote worker serves multiple clients from home location
  • Whether remote worker maintains separate business infrastructure
  • Whether remote worker markets services independently
  • Whether working remotely is part of an independent business model

⚠️ Important: Remote work arrangements alone do not make an individual an independent contractor. The same ABC test applies regardless of work location. Remote workers performing core business functions exclusively for one entity are likely to be classified as employees under Massachusetts law.

Exceptions and Special Cases

Federal Preemption:
Certain workers may be subject to federal law that preempts the Massachusetts ABC test for specific purposes:

Interstate Truck Drivers:
According to case law and guidance, certain provisions of the Federal Motor Carrier Act may preempt the second prong (Prong B) of the Massachusetts test for truck drivers operating vehicles over 10,000 pounds in interstate commerce. However, Prongs A and C still apply.

Rail Employees:
Federal railroad laws may affect classification analysis for certain railroad workers.

Airline Employees:
Federal airline regulations may preempt state classification laws for certain airline workers.

Licensed Real Estate Agents:
Massachusetts courts have held that licensed real estate agents may be exempt from the Massachusetts Independent Contractor Law under certain circumstances due to state licensing statutes. However, other laws and regulations may still apply.

Note: These exceptions are narrow, fact-specific, and subject to legal interpretation. Do not assume an exception applies without verification from legal counsel and appropriate regulatory authorities.

Potential Consequences of Misclassification

According to Massachusetts statutes, regulations, and official guidance, potential consequences of employee misclassification may include (this list is non-exhaustive and subject to change):

For Employers/Hiring Entities:

Wage and Hour Violations:

  • Back payment of wages if minimum wage or overtime was not properly paid
  • Treble damages (3x unpaid wages) under Massachusetts Wage Act
  • Attorneys’ fees and costs
  • Interest on unpaid amounts

Tax Liabilities:

  • Back payment of unemployment insurance contributions
  • Back payment of workers’ compensation premiums
  • State tax withholding obligations
  • Federal tax obligations (FICA, FUTA, income tax withholding)
  • Penalties and interest on unpaid tax obligations

Regulatory Penalties:

  • Civil penalties from Massachusetts Attorney General
  • Criminal enforcement for willful violations
  • Penalties from Massachusetts Department of Revenue
  • Federal penalties from IRS and Department of Labor

Other Potential Consequences:

  • Liability for benefits (sick time, paid family leave contributions)
  • Exposure to discrimination and retaliation claims
  • Workers’ compensation claim exposure
  • Unemployment benefit claim exposure
  • Reputational and business impacts

For Workers:

Misclassification may affect:

  • Access to minimum wage protections
  • Access to overtime pay
  • Access to earned sick time
  • Eligibility for unemployment benefits
  • Workers’ compensation coverage
  • Wage payment protections under Massachusetts Wage Act
  • Anti-discrimination and anti-retaliation protections
  • Tax obligations and benefits

⚠️ Note: Actual consequences depend on specific facts, circumstances, severity and duration of misclassification, enforcement priorities, settlement negotiations, and many other factors. This general information should not be relied upon to predict outcomes in specific situations.

How to Seek Guidance on Classification

Classification questions should be addressed through appropriate channels:

Massachusetts Attorney General’s Office – Fair Labor Division:

Employment Attorney Licensed in Massachusetts:

  • Purpose: Legal advice on classification decisions
  • Services: Analyze specific facts, assess risks, provide legal recommendations
  • Find attorneys: Massachusetts Bar Association at (617) 338-0500 or www.massbar.org

Tax Professional (CPA or Enrolled Agent):

  • Purpose: Tax implications of classification decisions
  • Services: Federal and state tax analysis, reporting obligations
  • Note: Tax classification may differ from employment law classification in some contexts

Massachusetts Department of Revenue:

IRS (Internal Revenue Service):

  • Phone: 1-800-829-4933
  • Website: https://www.irs.gov
  • Purpose: Federal tax implications; Form SS-8 determinations
  • Note: IRS uses different standards than Massachusetts ABC test for tax purposes

Critical Reminders for Classification Decisions

⚠️ REMEMBER:

  1. All three prongs must be satisfied for independent contractor status under Massachusetts law
  2. The employer bears the burden of proof to establish independent contractor status
  3. Massachusetts has one of the strictest tests in the United States – many relationships that might qualify as independent contractor arrangements in other states will be classified as employment in Massachusetts
  4. Contract labels do not determine classification – actual working relationship controls
  5. Forming a business entity (LLC, corporation) alone does not establish independent contractor status
  6. Good faith is not a defense to misclassification under Massachusetts law
  7. Penalties are severe including treble damages, attorneys’ fees, and potential criminal enforcement
  8. Classifications should be reviewed regularly as working relationships evolve
  9. Multi-state remote work adds complexity – consult counsel on conflicts of law

THE SAFEST APPROACH: When in doubt, classify as an employee and consult legal counsel before using independent contractor classification.

Minimum Wage Information for Massachusetts

Current Rate Information (As Published by Massachusetts DLS)

According to the Massachusetts Department of Labor Standards and Massachusetts Attorney General’s Office (sources below), the state minimum wage as of December 2025 is generally:

State Minimum Wage Rates:

Effective Date Regular Minimum Wage Service Rate (Tipped) Status
January 1, 2023 - Present $15.00/hour $6.75/hour Current rate
2026 and beyond $15.00/hour* $6.75/hour* No increases currently scheduled

*As of December 2025, no statutory increases are scheduled for 2026 or beyond. However, legislation has been proposed that could increase the minimum wage. Verify current law.

Source: Massachusetts Minimum Wage Program – https://www.mass.gov/minimum-wage-program
Source: Minimum wage and overtime information – https://www.mass.gov/info-details/minimum-wage-and-overtime-information
Source: Massachusetts Attorney General Workplace Poster – https://www.mass.gov/info-details/massachusetts-law-about-minimum-wage

Note on Proposed Legislation:
According to publicly available information, bills have been filed in the Massachusetts legislature (including S.1349 and H.1925) that would potentially increase the minimum wage incrementally to $20.00/hour by 2027-2029 and implement annual inflation adjustments. As of December 2025, these bills had not been enacted. Employers should monitor legislative developments.

⚠️ Important: Future increases may occur through legislative action or ballot initiatives without advance notice to this website. Always verify current rates through official Massachusetts government sources.

Service Rate (Tipped Employees)

According to Massachusetts law (M.G.L. c. 151, § 7), employers may pay a service rate to employees who customarily and regularly receive more than $20 per month in tips.

Current Service Rate: $6.75/hour (as of January 1, 2023)

General Requirements (according to statute and regulations):

  • Employer must notify employee in writing that service rate will be paid
  • Combined tips and hourly wages must equal at least the regular minimum wage ($15.00/hour)
  • Employer must make up any difference if tips plus service rate do not reach minimum wage
  • Tips belong to the employee; employer cannot use tips except as provided by law
  • Tip pooling may be permitted under certain conditions specified in M.G.L. c. 149, § 152A

Application to Remote Work:
Service rate provisions generally apply to qualifying service employees. Remote work contexts typically would not involve tipped positions, but if tips are part of compensation, the same rules would apply. Consult Massachusetts Attorney General’s Fair Labor Division for guidance on unusual situations.

Source: Massachusetts General Laws c. 151, § 7
Source: Massachusetts General Laws c. 149, § 152A (tip pooling)

Application to Remote Workers

According to general legal principles and Massachusetts Department of Labor Standards guidance:

Location-Based Application:

  • Minimum wage typically applies based on where work is physically performed
  • An employee performing work from a location in Massachusetts would generally be subject to Massachusetts minimum wage
  • Employer’s location is generally not the determining factor for minimum wage applicability

Multi-State Considerations:

  • Employees working remotely from Massachusetts for out-of-state employers would typically be covered by Massachusetts minimum wage
  • Conflicts of law may arise when employees work in multiple states
  • Employers with multi-state remote workforces should consult employment counsel

Note: Specific situations may vary based on factors including nature of work, employment relationship, and jurisdictional considerations. Employers should consult Massachusetts Attorney General’s Office or legal counsel for guidance on particular circumstances.

Local Minimum Wage Ordinances

According to available information as of December 2025, Massachusetts law generally preempts local municipalities from establishing their own minimum wage rates that differ from the state minimum wage.

General Rule:
Unlike some other states, Massachusetts cities and towns cannot enact local minimum wages. The statewide rate of $15.00/hour applies throughout Massachusetts.

Exception – City Contracts:
Some municipalities may have prevailing wage requirements or living wage ordinances that apply to employees working under city contracts. These are separate from general minimum wage requirements.

Example – Boston Living Wage:
The City of Boston has ordinances requiring contractors and recipients of city assistance to pay living wages under certain circumstances. As of 2025, this rate was higher than the state minimum wage. These requirements are contract-specific and do not establish a general citywide minimum wage.

Source: City of Boston ordinances – https://www.boston.gov/

⚠️ Important: Employers working under government contracts or receiving government assistance should verify whether prevailing wage or living wage requirements apply. These are separate from minimum wage laws.

Exemptions and Variations

According to Massachusetts law and regulations, certain variations or exemptions from minimum wage requirements may apply in some circumstances:

Agricultural Workers:

  • May be paid a lower minimum wage of $8.00/hour under certain conditions
  • Subject to specific provisions in M.G.L. c. 151, § 2
  • Exemptions are narrowly construed

Youth Minimum Wage (Subminimum Wage):

  • Workers under age 20 may be paid $8.25/hour during their first 90 calendar days of employment
  • After 90 days, must be paid full minimum wage
  • Subject to conditions specified in regulation

Students in Vocational/Co-op Programs:

  • May be eligible for subminimum wage under qualifying educational programs
  • Specific requirements apply; consult Massachusetts Department of Labor Standards

Other Potential Exemptions:

  • Certain apprentices and learners (subject to approval)
  • Specific categories as defined in statute and regulation

⚠️ Critical Note: Exemptions from minimum wage are narrowly construed under Massachusetts law. Employers should not assume an exemption applies without verification from Massachusetts Attorney General’s Office, Department of Labor Standards, and legal counsel. Misclassification of employees into exempt categories can result in wage and hour violations.

Source: Massachusetts General Laws c. 151, §§ 1-7
Source: 454 CMR 27.00 (Minimum Fair Wage Regulations)

Resources for Current Information

Massachusetts Attorney General’s Office – Fair Labor Division:

Massachusetts Department of Labor Standards:

U.S. Department of Labor – Wage and Hour Division:

Overtime and Break Requirements in Massachusetts

A. Overtime Standards

Governing Framework:
Massachusetts generally follows the federal Fair Labor Standards Act (FLSA) overtime standard but also has state-specific provisions under Massachusetts General Laws Chapter 151, Section 1A.

Statutory Authority: M.G.L. c. 151, § 1A
Federal Authority: 29 USC § 207 (FLSA)
Official Source: https://www.mass.gov/info-details/massachusetts-law-about-overtime

General Overtime Threshold (as stated in statute)

According to Massachusetts law and regulations:

Weekly Threshold:

  • Overtime generally triggered after 40 hours worked in a workweek
  • Rate generally required: 1.5 times regular hourly rate
  • “Workweek” means any fixed and regularly recurring period of 168 hours (7 consecutive 24-hour periods)
  • Employer defines when workweek begins; must be consistent

⚠️ Daily Overtime:
Massachusetts does NOT require overtime for work beyond a certain number of hours in a single day. Overtime is calculated on a weekly basis only.

What this means:
An employee could work 12 hours in one day and not be entitled to overtime if total hours for the week do not exceed 40. Only weekly totals trigger overtime requirements under Massachusetts law.

Comparison to Federal Law:
Massachusetts overtime requirements align with federal FLSA standards. Where both laws apply, the law providing greater benefits to the employee controls.

Source: M.G.L. c. 151, § 1A
Source: 29 USC § 207

Application to Remote Workers

According to wage and hour principles and guidance:

General Application:

  • Overtime regulations typically apply based on the nature of work and employment classification, not work location
  • Remote workers performing non-exempt work would generally be subject to the same overtime requirements as on-site workers
  • Physical work location does not change overtime obligations

However, specific applicability depends on:

  • Whether employee is properly classified as exempt or non-exempt
  • Whether all hours worked are properly tracked and reported
  • Whether employee meets criteria for any exemptions (see below)

⚠️ Important: Exemption status requires detailed analysis and should be evaluated by legal counsel.

Calculating Overtime and Compensable Time

According to Massachusetts and federal guidance, “hours worked” for overtime calculation purposes may include:

Generally Compensable Time:

  • Time actually performing work duties
  • Time required to be on premises
  • Required meetings and training
  • Time waiting to perform work (in some circumstances)
  • On-call time when employee is required to remain on premises or cannot use time freely
  • Other activities depending on specific facts

⚠️ Complex Issue for Remote Workers:

Determining compensable time for remote workers can involve additional considerations:

Potential Issues:

  • After-hours email responses and communications
  • On-call time at home
  • Time spent in virtual meetings outside regular hours
  • Work performed outside designated schedule
  • System log-in time versus actual work time

General Principle:
Time spent performing work for the employer’s benefit is generally compensable, regardless of location. However, determining what constitutes “work” in a remote environment can be fact-specific.

⚠️ Employer Obligations:
According to regulatory guidance, employers generally have an obligation to:

  • Track all hours worked by non-exempt employees
  • Have policies prohibiting off-the-clock work
  • Compensate for all time worked even if not authorized (while potentially disciplining for policy violations)
  • Maintain accurate time records

These determinations are fact-specific. Employers should consult wage-hour counsel for guidance on tracking and paying remote workers.

Source: Massachusetts Attorney General’s Office wage and hour guidance
Source: 29 CFR Part 785 (Hours Worked under FLSA)

Overtime Exemptions

Massachusetts recognizes certain exemptions from overtime requirements. The most common exemptions are:

Executive, Administrative, and Professional (EAP) Exemptions

To potentially qualify for EAP exemptions under federal and state law, employees generally must meet tests related to:

1. Salary Basis:
Paid a predetermined salary not subject to reduction based on quality or quantity of work performed

2. Salary Level:
Meets minimum salary threshold

3. Duties:
Performs exempt-level duties as defined in regulations

2025 Federal Salary Threshold (for reference):
According to FLSA regulations, the federal salary threshold for EAP exemptions was subject to regulatory changes:

  • A rule increasing thresholds to $58,656 annually ($1,128/week) as of January 1, 2025 was blocked by federal court in November 2024
  • As of December 2025, the effective threshold remained $35,568 annually ($684/week) under pre-2024 regulations
  • Employers should verify current federal thresholds and any Massachusetts-specific requirements

Massachusetts Application:
Massachusetts generally follows federal FLSA exemption standards but may interpret duties tests differently in some contexts. Classification errors can result in significant liability.

⚠️ Critical Notes:

  • Job title alone does not determine exemption status
  • Meeting salary threshold alone is insufficient – duties tests must also be satisfied
  • All three tests (salary basis, salary level, duties) must be met
  • Exemptions are narrowly construed
  • Classification should be reviewed by legal counsel

Duties Tests (General Descriptions):

Executive Exemption:
Generally requires that primary duty is management, regularly directs work of two or more employees, and has authority to hire/fire or make recommendations given particular weight.

Administrative Exemption:
Generally requires that primary duty is office or non-manual work directly related to management or general business operations, and exercises discretion and independent judgment on matters of significance.

Professional Exemption:
Generally requires that primary duty is work requiring advanced knowledge in a field of science or learning, or work in a recognized creative field.

Source: 29 CFR Part 541 (FLSA regulations on exemptions)
Source: Massachusetts Department of Labor Standards guidance

Computer Professional Exemption

Computer professionals may be exempt if they meet either:

Salary Basis:
Meet the salary threshold for EAP exemptions ($35,568/year federally as of December 2025 – verify current amount)

OR Hourly Basis:
Paid at least $27.63/hour (federal rate – verify current Massachusetts rate if different)

PLUS Duties Test:
Must perform qualifying computer professional duties as defined in 29 CFR § 541.400

⚠️ Note: Not all IT workers qualify. The exemption is narrow and fact-specific. Consult legal counsel for classification decisions.

Other Common Exemptions

According to M.G.L. c. 151, § 1A, Massachusetts specifically exempts certain categories from overtime requirements, including:

  • Restaurant employees (under certain conditions)
  • Retail establishment employees (under certain conditions)
  • Certain hotel and motel employees
  • Janitors and caretakers in residential properties
  • Agricultural workers
  • Fishermen
  • Certain transportation workers
  • Other categories specified in statute

⚠️ Important: These exemptions have specific definitions and requirements. Federal law may still require overtime even if state law exempts. Employers must comply with whichever law provides greater protection to employees.

Source: M.G.L. c. 151, § 1A
Source: 29 USC § 213(a) (FLSA exemptions)

B. Meal and Rest Break Requirements

Massachusetts has specific requirements regarding meal breaks for non-exempt employees.

Statutory Authority: 454 CMR 27.04
Official Source: https://www.mass.gov/info-details/massachusetts-law-about-hours-and-conditions-of-employment

Meal Break Requirements

According to Massachusetts regulations (454 CMR 27.04):

General Requirement:

  • Employees working more than 6 hours in a workday must be given at least a 30-minute meal break
  • The meal break does not need to be paid unless the employee is not relieved of all duties
  • Timing: Generally should be provided between the 2nd and 5th hour of work (though timing may vary)

“Relieved of All Duties” Standard:

  • Employee must be completely free from work obligations during the meal break
  • Employee must be free to leave the workplace
  • If employee is required to remain available or perform any work, the time must be paid

Remote Worker Application:

  • Meal break requirements generally apply to remote workers in the same manner as on-site workers
  • Employer must ensure remote workers take required breaks and do not work during unpaid meal periods
  • Tracking and verification may require specific policies and systems for remote workers

Potential Compliance Challenges for Remote Work:

  • Verifying breaks are actually taken
  • Ensuring workers do not work during unpaid meal periods
  • Documenting compliance
  • Handling interruptions during breaks

Exemptions:

  • Certain industries may be exempt (e.g., glass, print shops, bleaching works)
  • Exemptions are narrow – verify applicability with Massachusetts DLS

Source: 454 CMR 27.04
Source: Massachusetts Department of Labor Standards guidance

Rest Break Requirements

According to Massachusetts regulations:

No General Rest Break Requirement:
Massachusetts law does NOT require employers to provide short rest breaks (e.g., 10-15 minute breaks) for adult employees.

However, if employer chooses to provide rest breaks:

  • Federal law (FLSA) provides that short breaks of 5-20 minutes are generally considered compensable work time
  • Employees must be paid for short rest breaks even though they are not required by law

Distinction:

  • Meal breaks (30+ minutes): May be unpaid if employee is completely relieved of duties
  • Short rest breaks (5-20 minutes): Must be paid if provided

Source: U.S. Department of Labor guidance on breaks
Source: 29 CFR § 785.18 (rest periods under FLSA)

Record keeping Requirements

According to Massachusetts and federal regulations, employers must maintain accurate records of:

Minimum Required Records:

  • Employee’s full name, address, occupation, and date of birth (if under 19)
  • Time and day when workweek begins
  • Total hours worked each day and each workweek
  • Total daily or weekly straight-time earnings
  • Regular hourly pay rate for weeks when overtime is worked
  • Total overtime pay for the workweek
  • Deductions from or additions to wages
  • Total wages paid each pay period
  • Date of payment and pay period covered

Retention Period:
At minimum, 3 years under Massachusetts law; federal law may require longer retention for certain records.

Remote Worker Considerations:

  • Time tracking systems should capture actual hours worked by remote employees
  • Systems should distinguish between work time and break time
  • Employers should have policies requiring accurate time reporting
  • Verification mechanisms may be needed to ensure accuracy

Source: M.G.L. c. 151, § 15
Source: 454 CMR 27.00
Source: 29 CFR Part 516 (FLSA recordkeeping requirements)

Resources and Guidance

For specific questions about overtime and breaks:

Massachusetts Attorney General’s Office – Fair Labor Division:

U.S. Department of Labor – Wage and Hour Division:

For Legal Advice:

  • Employment attorney licensed in Massachusetts
  • Massachusetts Bar Association Lawyer Referral Service: (617) 338-0610

Paid Sick Leave Programs in Massachusetts

Massachusetts Earned Sick Time Law Overview

Legal Framework:

Statutory Authority: Massachusetts General Laws Chapter 149, Sections 148C and 148D
Effective Date: July 1, 2015
Administering Agency: Massachusetts Attorney General’s Office – Fair Labor Division
Official Resource: https://www.mass.gov/info-details/earned-sick-time

General Program Description (Based on Official Sources)

According to the Massachusetts Attorney General’s Office and statute, the earned sick time law generally:

  • Applies to most employees who perform work in Massachusetts for private and nonprofit employers
  • Requires employers to provide earned sick time that accrues as employees work
  • Provides job-protected leave for qualifying purposes
  • Requires paid sick time for employers with 11 or more employees
  • Requires unpaid sick time for employers with 10 or fewer employees

Note: Actual applicability depends on specific circumstances including employer size, employee classification, hours worked, and other factors.

Source: M.G.L. c. 149, § 148C and § 148D
Source: 940 CMR 33.00 (Earned Sick Time Regulations)

Coverage Framework

Employer Coverage

According to Massachusetts Attorney General guidance:

Employers with 11 or More Employees:

  • Must provide paid earned sick time
  • “Employee” count includes all employees regardless of location
  • Includes part-time, full-time, seasonal, temporary, and per diem employees
  • Owners and officers on payroll count as employees

Employers with 10 or Fewer Employees:

  • Must provide earned sick time, which may be unpaid
  • Same counting methodology applies

Determining Employer Size:

  • Count all employees who work for pay
  • Include employees in all locations (Massachusetts and elsewhere)
  • Determine size at the start of the benefit year and re-evaluate annually

Note: Employer size determination affects whether sick time must be paid. If employer size changes, notification requirements may apply. Consult regulations at 940 CMR 33.00.

Source: 940 CMR 33.03

Employee Eligibility

According to the statute and regulations, earned sick time generally applies to employees who:

  • Perform work in Massachusetts
  • Work for a covered employer
  • Are not specifically exempted

Exemptions May Include:

  • Certain employees in educational institutions
  • Certain students in work-study programs
  • Certain healthcare employees (very narrow exception)
  • Employees of particular United States employers subject to collective bargaining agreements meeting specified criteria

Remote Workers:
According to general principles, remote workers performing work from locations in Massachusetts for covered employers would typically be eligible for earned sick time under the same standards as on-site workers. Specific situations should be evaluated based on complete facts.

Source: 940 CMR 33.02 (Definitions and Coverage)

Accrual Provisions (As Described in Statute/Regulations)

According to M.G.L. c. 149, § 148C and regulations:

Accrual Rate:

  • Minimum of 1 hour of earned sick time for every 30 hours worked
  • Accrual begins on the first day of employment or July 1, 2015 (whichever is later)
  • Employers may frontload 40 hours at the beginning of the benefit year instead of using accrual method

Annual Caps:

  • Employers are not required to permit employees to use more than 40 hours of earned sick time per benefit year
  • Employers are not required to permit accrual of more than 40 hours per benefit year

Carryover:

  • Employees may carry over up to 40 hours of unused earned sick time to the next benefit year
  • Employers are not required to permit carryover of more than 40 hours
  • If employer frontloads 40 hours, carryover may not be required (see regulations)

Benefit Year:

  • Any consecutive 12-month period determined by employer
  • Must be consistently applied

Example Calculation (Illustrative Only):
An employee working 1,500 hours in a year would generally accrue 50 hours under the statutory formula (1,500 ÷ 30 = 50). However, employer is only required to permit use and accrual of 40 hours. Actual accrual depends on specific circumstances and employer policy.

Source: M.G.L. c. 149, § 148C
Source: 940 CMR 33.04 (Accrual and Use)

Usage Provisions (As Stated in Law)

Permitted Uses (from statute):

According to M.G.L. c. 149, § 148C, earned sick time may generally be used for:

  1. Employee’s Own Health: • Care or treatment for the employee’s physical or mental illness, injury, or medical condition • Preventive medical care for the employee • Routine medical appointments
  2. Family Member Care: • Care or treatment for a family member’s physical or mental illness, injury, or medical condition • Preventive medical care for a family member • Routine medical appointments for a family member
  3. Domestic Violence: • Addressing the psychological, physical, or legal effects of domestic violence
  4. Pregnancy Loss or Failed Reproductive Procedures (Effective November 21, 2024): • Time needed due to pregnancy loss • Time needed due to failed assisted reproduction, adoption, or surrogacy

“Family Member” Definition (from regulations):
Generally includes:

  • Child (biological, adopted, foster, stepchild, legal ward, child of employee’s spouse or domestic partner)
  • Spouse
  • Parent (biological, adoptive, foster, stepparent, parent-in-law, legal guardian)
  • Grandchild
  • Grandparent
  • Spouse’s grandparent

Note: Definitions are specific and detailed in regulations. Consult 940 CMR 33.02 for complete definitions.

Source: M.G.L. c. 149, § 148C
Source: 940 CMR 33.02 and 33.04

Notice and Documentation

According to Massachusetts regulations:

Employee Notice to Employer:

  • Employers may require employees to give notice of the need for earned sick time
  • If foreseeable, employer may require up to 7 days’ advance notice
  • If not foreseeable, employer may require notice as soon as practicable
  • Employer must have written policy regarding notice requirements

Employer Documentation Requests:

  • For absences of more than 24 consecutively scheduled work hours, employer may require documentation
  • Documentation requirements must be reasonable
  • Employer cannot require disclosure of details beyond what is necessary to verify qualifying use
  • Employer cannot delay payment of earned sick time while awaiting documentation

Pay Timing:

  • Earned sick time must be paid no later than the employee’s next regular payday after use

Source: 940 CMR 33.04(3) and 33.04(4)

Employer Obligations (From Statute and Regulations)

The statute and regulations generally require employers to:

Posting Requirements:

  • Post Notice of Employee Rights in a conspicuous location
  • Notice available in multiple languages from Massachusetts Attorney General’s website
  • Provide notice to new employees at hire

Policy Requirements:

  • Develop and implement earned sick time policy consistent with law
  • Provide written policy to employees
  • Policy must meet or exceed statutory minimums

Recordkeeping:

  • Maintain records of earned sick time accrued and used
  • Provide information to employees (often on pay stubs or separate statements)
  • Retain records for 3 years

Prohibited Actions:

  • Cannot retaliate against employees for using or requesting earned sick time
  • Cannot require employee to find replacement worker as condition of using earned sick time
  • Cannot count earned sick time as absence for disciplinary purposes (except for misuse)

Non-Compliance May Result In:

  • Investigation by Attorney General’s Office
  • Civil penalties
  • Back payment of unpaid earned sick time
  • Damages and attorneys’ fees in private lawsuits

Note: Specific compliance steps should be developed with guidance from Massachusetts Attorney General’s Office and legal counsel.

Source: M.G.L. c. 149, § 148C
Source: 940 CMR 33.05 (Employer Requirements)

Relationship with Other Leave

Earned sick time generally operates as follows with respect to other leave programs:

Federal FMLA:

  • Earned sick time may run concurrently with FMLA leave
  • Employers may require use of earned sick time during otherwise unpaid FMLA leave
  • Employees may choose to use earned sick time during FMLA leave

Massachusetts Paid Family and Medical Leave (PFML):

  • Earned sick time and PFML are separate programs
  • Coordination rules may apply; consult Massachusetts Department of Family and Medical Leave

Employer PTO Policies:

  • Employers with more generous PTO policies that can be used for same purposes may not need to provide additional sick time
  • PTO policy must meet or exceed all earned sick time requirements
  • Employers must provide clear notice if PTO policy is intended to satisfy earned sick time law

These interactions can be complex. Consult legal counsel for policy coordination.

Source: Massachusetts Attorney General’s Earned Sick Time FAQs

Resources for Compliance

Massachusetts Attorney General’s Office:

Downloads Available:

For Legal Advice:

  • Employment attorney licensed in Massachusetts
  • HR compliance consultant

Workers' Compensation Overview for Massachusetts

Legal Framework

Statutory Authority: Massachusetts General Laws Chapter 152
Administering Agency: Massachusetts Department of Industrial Accidents (DIA)
Official Source: https://www.mass.gov/orgs/department-of-industrial-accidents

Agency Contact Information:

General Coverage Requirements (As Stated in Law)

According to Massachusetts General Laws Chapter 152 and DIA guidance:

Coverage Generally Required For:

  • Most employers in Massachusetts with one or more employees
  • Coverage applies when employer has employees working in Massachusetts
  • Various categories of workers as defined in statute

General Purpose: According to the statute, the workers’ compensation system generally:

  • Requires most employers to carry workers’ compensation insurance
  • Provides benefits to employees for work-related injuries and illnesses
  • Covers medical treatment and wage replacement
  • Operates on a no-fault basis (fault generally not a determining factor)
  • Applies to injuries that “arise out of and in the course of employment”

What This Generally Means:

  • Employers typically cannot opt out of providing coverage
  • Employees generally cannot sue employers in civil court for covered injuries
  • Coverage determinations are made by DIA based on specific facts

Source: M.G.L. c. 152
Source: Employer’s Guide to Workers’ Compensation – https://www.mass.gov/orgs/department-of-industrial-accidents

Massachusetts Workers’ Compensation System Structure

According to DIA materials, Massachusetts operates a competitive workers’ compensation insurance market.

General System Features:

  • Employers may purchase insurance from licensed private carriers
  • Self-insurance options may be available for qualifying employers
  • Workers’ Compensation Trust Fund exists for certain situations
  • Rates are regulated by Massachusetts Division of Insurance

Employer Obligations (according to statute and regulations):

  • Carry workers’ compensation insurance as required by law
  • Report injuries to insurer within specified timeframes
  • Report injuries to DIA when certain criteria are met
  • Post required notices about workers’ compensation
  • Maintain required records

⚠️ Note: Specific obligations depend on employer size, industry, and other factors. Consult DIA and legal counsel for compliance requirements.

Source: M.G.L. c. 152, § 25A
Source: DIA Employer Resources – https://www.mass.gov/workers-compensation-for-employers

Coverage Standard: “Arising Out of and In the Course of Employment”

According to Massachusetts General Laws Chapter 152, Section 26, compensation is generally provided for injuries “arising out of and in the course of employment.”

What This Standard Generally Examines:

“In the Course of Employment”:

  • Whether injury occurred during work hours or work-related activity
  • Whether employee was engaged in employer’s business
  • Whether activity was within scope of employment

“Arising Out of Employment”:

  • Whether there is a causal connection between employment and injury
  • Whether employment created or increased the risk of injury
  • Whether injury was related to employment duties or conditions

⚠️ Important: Application of this standard is highly fact-specific and requires case-by-case analysis. Courts and DIA examine the totality of circumstances.

Source: M.G.L. c. 152, § 26
Source: Massachusetts case law interpreting coverage standard

Remote Worker Coverage Considerations

⚠️ EXTREMELY COMPLEX AND FACT-SPECIFIC: Coverage of home office injuries involves detailed factual analysis and legal interpretation. The following is general background only. Do NOT make coverage assumptions without consultation with DIA and legal counsel.

General Legal Principles:

According to case law and workers’ compensation principles, the same “arising out of and in the course of employment” standard applies to remote workers as to on-site workers. However, application to home office situations involves additional considerations.

Factors That May Be Examined (based on case law and principles):

According to reported cases and workers’ compensation analysis, relevant factors may include:

  • Work Activity: Whether employee was performing work duties at time of injury
  • Work Location: Whether injury occurred in designated work area (home office)
  • Work Hours: Whether injury occurred during work hours or work period
  • Employer Benefit: Whether activity served employer’s interests
  • Authorization: Whether work location and activity were authorized
  • Required Presence: Whether employee was required to be in that location
  • Personal vs. Work Activity: Whether activity was personal comfort or work-related

⚠️ Critical Notes:

  • No single factor is determinative
  • Each case is evaluated on its complete factual circumstances
  • Contract language (calling someone a “remote worker”) does not determine coverage
  • Actual determination must be made by DIA or through legal process

Illustrative Scenarios for Remote Workers (Educational Purpose Only)

The following scenarios are provided for general educational purposes only. They do NOT constitute:

  • Coverage determinations or predictions
  • Legal advice on claim eligibility
  • Recommendations for filing or not filing claims
  • Exhaustive analysis of relevant factors

Every injury is unique. Actual coverage depends on official DIA determination based on complete circumstances.

Scenario Category: Work-Related Activities in Designated Home Office

Example Situation: Employee trips over computer cables while walking to retrieve work files in designated home office during scheduled work hours.

General Observations (NOT a determination):

This type of scenario may share some characteristics with situations that have been found compensable in some contexts, such as:

  • Activity appears work-related (retrieving work files)
  • Occurred in what may be considered work area (designated home office)
  • During scheduled work hours
  • Performing employer’s business

However, compensability would require analysis of additional factors including:

  • Whether home office was formally designated and approved by employer
  • Whether employer had knowledge of home office setup and hazards
  • Whether cables were work-related or personal
  • Whether similar hazard would exist in employer’s workplace
  • Many other specific circumstances

This is NOT a coverage determination. Actual determination would be made by DIA based on investigation of all facts. Consult DIA and workers’ compensation attorney for actual coverage questions.

Example Situation: Employee develops repetitive stress injury (carpal tunnel syndrome) from extended computer use performing assigned work duties in home office.

General Observations (NOT a determination):

Occupational diseases and repetitive stress injuries may potentially be compensable under certain circumstances. Analysis would typically examine:

  • Medical evidence of work-relatedness
  • Nature and duration of work activities
  • Whether condition arose from employment duties
  • Comparison to general public exposure

However, occupational disease claims are particularly fact-specific and require:

  • Detailed medical documentation
  • Analysis of work requirements
  • Expert medical opinions
  • Evaluation of multiple causation factors

This is NOT a coverage determination. Consult medical professionals for injury evaluation and DIA/legal counsel for coverage determinations.

Scenario Category: Injuries During Personal Activities

Example Situation: Employee injured while preparing personal lunch in kitchen during authorized lunch break.

General Observations (NOT a determination):

This type of scenario may involve considerations such as:

  • Whether employee was completely relieved of work duties during lunch
  • Whether activity was personal comfort or personal errand
  • Whether kitchen is part of designated work area
  • Whether employer derived any benefit from activity

According to general workers’ compensation principles, personal comfort activities may be analyzed differently than work duties. However, specific facts matter greatly, including:

  • Whether break was paid or unpaid
  • Whether employee was required to remain available
  • Whether employer had any control over break activities
  • Other circumstance-specific factors

This is NOT a coverage determination. Each case requires complete factual analysis.

Scenario Category: “Going and Coming” Rule

Example Situation: Remote employee injured in car accident while driving to office for required in-person meeting.

General Observations (NOT a determination):

Massachusetts case law has established a “going-and-coming” rule, which generally provides that injuries sustained while commuting to and from work are typically not compensable. However, exceptions may exist, including:

  • Special Mission Exception: Travel may be compensable when employee is on special assignment
  • Traveling Employee Exception: Employees whose work involves regular travel may be covered during travel
  • Employer Premises Exception: Injuries on employer premises may be covered even during commute

Application to remote workers traveling to occasional in-person meetings would require fact-specific analysis, including:

  • Whether meeting attendance was required
  • Whether travel was part of employment duties
  • Whether employee was performing employer’s business during travel
  • Other relevant circumstances

This is NOT a coverage determination. Consult DIA and legal counsel for guidance on travel-related injuries.

ACTUAL COVERAGE DETERMINATIONS:

  • Are made by Massachusetts Department of Industrial Accidents
  • Require investigation of complete factual circumstances
  • May involve medical evaluations and expert opinions
  • Can be appealed through administrative and judicial process
  • Depend on Massachusetts law, regulations, and case precedent

FOR ACTUAL INJURIES:

  • Report to employer immediately
  • Seek appropriate medical attention
  • Contact DIA for guidance: (617) 727-4900
  • Consult workers’ compensation attorney for legal advice
  • Do not make coverage assumptions without professional consultation

Benefits Generally Available (From Statute)

According to M.G.L. c. 152, workers’ compensation benefits may include:

Medical Benefits:

  • Reasonable and necessary medical treatment
  • Hospital services
  • Prescription medications
  • Medical equipment as prescribed
  • Rehabilitation services when appropriate

Wage Replacement Benefits:

  • Generally 60% of average weekly wage
  • Subject to maximum amounts (updated annually)
  • Waiting period: Benefits begin after 5 calendar days of disability
  • If disability exceeds 21 days, waiting period benefits may be paid retroactively

Disability Benefits (depending on type and extent of disability):

  • Temporary total disability
  • Permanent total disability
  • Temporary partial disability
  • Permanent partial disability (specific and general)

Vocational Rehabilitation:

  • Services to restore employee to suitable employment when appropriate
  • Evaluation, training, and counseling services may be available

Note: Specific benefit amounts and eligibility depend on injury circumstances, wage history, and statutory formulas. Consult DIA or claims administrator for benefit calculations.

Source: M.G.L. c. 152, §§ 34, 34A, 35, 35A-E, 36
Source: Injured Worker’s Guide to Workers’ Compensation – https://www.mass.gov/workers-compensation-for-injured-workers

Reporting and Claim Process (General Framework)

According to Massachusetts regulations, the general process typically involves:

For Employees:

Immediate Steps:

  • Report injury to employer immediately or as soon as practicable
  • Seek medical attention (call 911 for emergencies)
  • Document circumstances of injury

Formal Reporting:

  • If injury results in 5 or more days of lost time, employer must file Form 101
  • If employer does not file within 30 days, employee may file Form 110 directly
  • Report must be filed within specified timeframes

Claim Process:

  • Insurer has 14 days to investigate and accept or deny claim
  • If claim is denied, employee can appeal to DIA
  • DIA provides dispute resolution process

For Employers:

Reporting Requirements:

  • File Employer’s First Report of Injury (Form 101) electronically to DIA
  • Must be filed within 7 days after 5th day of lost time
  • Report to insurance carrier promptly
  • Maintain records as required

⚠️ Important: Deadlines are strictly enforced. Late reporting may affect claims and result in penalties. When in doubt, report promptly and seek guidance from DIA or legal counsel.

Source: M.G.L. c. 152, §§ 6-7
Source: DIA Forms and Filing Information – https://www.mass.gov/orgs/department-of-industrial-accidents

Best Practices for Remote Work (General Recommendations Only)

The following are general recommendations based on workers’ compensation principles. They do NOT constitute:

  • Legal requirements (unless specifically required by law)
  • Guarantees of coverage or non-coverage
  • Substitutes for legal or insurance advice
  • One-size-fits-all solutions

Consult legal counsel, insurance professionals, and safety experts for specific recommendations.

For Employers (Considerations):

  • Consider formally designating and approving remote work locations
  • Consider providing ergonomic equipment or allowances
  • Consider developing remote work safety guidelines
  • Consider clear injury reporting procedures for remote workers
  • Consider training on workers’ compensation rights and obligations
  • Consider documentation of remote work arrangements
  • Consider regular safety communications

For Remote Workers (Considerations):

  • Consider setting up dedicated, safe work area
  • Consider documenting home office setup if possible
  • Consider reporting hazards to employer
  • Consider following employer safety guidelines
  • Consider prompt injury reporting if incidents occur
  • Consider maintaining clear work/personal time boundaries
  • Consider keeping records of work activities

⚠️ Note: These are general considerations only. Actual safety and compliance requirements should be developed with professional guidance appropriate to specific circumstances.

Resources and Contacts

Massachusetts Department of Industrial Accidents:

For Legal Advice:

  • Workers’ compensation attorney licensed in Massachusetts
  • Massachusetts Bar Association Referral: (617) 338-0610
  • Lawyer referral services available at https://www.massbar.org

For Insurance Questions:

  • Your workers’ compensation insurance carrier
  • Insurance agent or broker
  • Massachusetts Division of Insurance: (617) 521-7794

Massachusetts Paid Family and Medical Leave (PFML)

Legal Framework

Statutory Authority: Massachusetts General Laws Chapter 175M
Administering Agency: Massachusetts Department of Family and Medical Leave (DFML)
Effective Date: January 1, 2021
Official Source: https://www.mass.gov/orgs/department-of-family-and-medical-leave

Agency Contact Information:

General Program Description

According to the Massachusetts DFML and statute, the Paid Family and Medical Leave program generally:

  • Provides paid leave for eligible workers for qualifying family and medical reasons
  • Is funded through employer and employee contributions (payroll tax)
  • Applies to most employees working in Massachusetts
  • Provides job protection during leave
  • Offers replacement income during leave periods

Types of Leave Generally Available:

Medical Leave (up to 20 weeks per benefit year):

  • Employee’s own serious health condition
  • Pregnancy and childbirth
  • Recovery from childbirth

Family Leave (up to 12 weeks per benefit year):

  • Bond with new child (birth, adoption, foster placement)
  • Care for family member with serious health condition
  • Address needs arising from family member’s military deployment
  • Care for family member who is a covered service member

Military Caregiver Leave (up to 26 weeks per benefit year):

  • Care for family member who is covered service member with serious injury/illness

Maximum Total: Generally up to 26 weeks of combined leave per benefit year

Source: M.G.L. c. 175M
Source: PFML Overview – https://www.mass.gov/info-details/paid-family-and-medical-leave-pfml-overview-and-benefits

Coverage and Eligibility

Employer Coverage:

According to DFML guidance, PFML generally applies to:

  • Most employers with employees working in Massachusetts
  • Includes out-of-state employers with Massachusetts employees
  • Private employers, nonprofits, and certain government entities

Exemptions may include:

  • Certain municipalities and political subdivisions (unless they opt in)
  • Certain categories specified in statute
  • Employers with approved private plans meeting program requirements

Employee Eligibility:

Generally, to be eligible for PFML benefits, an employee must:

  • Have earned at least $6,000 (for calendar years 2024-2025; verify current threshold) during the base period
  • Have performed work in Massachusetts
  • Meet other eligibility criteria specified in regulations

Base Period: Generally the last four completed calendar quarters before the benefit year begins.

⚠️ Note: Eligibility is determined by DFML based on wage records and specific circumstances. Consult DFML or use online calculator for eligibility verification.

Source: M.G.L. c. 175M, § 1
Source: DFML Eligibility Information – https://www.mass.gov/info-details/paid-family-and-medical-leave-pfml-overview-and-benefits

Contribution Rates (2025-2026)

According to DFML announcements, contribution rates for the PFML program are:

2025 Rates (Effective January 1, 2025):

  • Total contribution rate: 0.88% of eligible wages
  • Maximum weekly benefit: $1,170.64
  • State average weekly wage: $1,829.13

2026 Rates (Effective January 1, 2026):

  • Total contribution rate: 0.88% of eligible wages (unchanged)
  • Maximum weekly benefit: $1,230.39 (increase of ~$60)
  • State average weekly wage: $1,922.48

Rate Breakdown:

For Employers with 25+ Covered Individuals:

  • Medical Leave Contribution: 0.70% total
    • Employee portion: 0.28%
    • Employer portion: 0.42%
  • Family Leave Contribution: 0.18% total
    • Employee portion: 0.18%
    • Employer portion: $0

For Employers with Fewer than 25 Covered Individuals:

  • Medical Leave Contribution: 0.28% (employee portion only)
  • Family Leave Contribution: 0.18% (employee portion only)
  • Employer portion: Not required

Wage Cap:

  • Contributions are capped at Social Security taxable wage base
  • For 2025: $168,600
  • For 2026: Verify current amount

Source: DFML 2026 Rate Announcement – https://www.mass.gov/orgs/department-of-family-and-medical-leave
Source: 2026 Massachusetts PFML Updates

Benefit Calculation

According to DFML, weekly benefit amounts are calculated based on:

Individual Average Weekly Wage (IAWW):

  • Calculated from wages in base period (last 4 completed quarters)
  • Generally uses the two highest-earning quarters

Benefit Formula (2026):

For workers earning less than 50% of state average weekly wage:

  • Benefit = 80% of IAWW

For workers earning more than 50% of state average weekly wage:

  • Benefit = (50% of SAWW × 0.80) + (amount above 50% of SAWW × 0.50)

Maximum Benefit 2026: $1,230.39 per week

Example (Illustrative Only):
Worker with IAWW of $1,500/week in 2026:

  • First $961.24 (50% of $1,922.48 SAWW) × 0.80 = $768.99
  • Remaining $538.76 × 0.50 = $269.38
  • Total weekly benefit: $768.99 + $269.38 = $1,038.37

Note: Actual calculations performed by DFML. Use DFML benefit calculator for estimates: https://www.mass.gov/info-details/paid-family-and-medical-leave-pfml-overview-and-benefits

Source: M.G.L. c. 175M, § 1
Source: How PFML Benefits Are Calculated – https://www.mass.gov/info-details/how-pfml-weekly-benefit-amounts-are-calculated-andor-changed

Tax Treatment of PFML Benefits (Effective January 1, 2026)

According to IRS Revenue Ruling 2025-4 and DFML guidance:

Medical Leave Benefits:

For Employers with 25+ Employees:

  • 60% of medical leave benefits are subject to FICA taxes (employer-funded portion)
  • DFML will withhold employee portion of FICA
  • Employer must remit employer portion of FICA and FUTA
  • 60% must be reported as wages on Form W-2

For Employers with Fewer than 25 Employees:

  • Medical leave benefits are not subject to FICA taxes
  • No FUTA taxes due
  • No Form W-2 reporting required for PFML benefits

Family Leave Benefits:

  • Generally not subject to FICA or FUTA taxes
  • Not reported as wages on Form W-2

Income Tax Withholding:

  • Employees may elect to have federal and state income taxes withheld
  • Some medical benefits may not be subject to income tax under IRS rules

⚠️ Important: Tax treatment is complex and depends on multiple factors. Consult tax professionals and review DFML tax guidance at: https://www.mass.gov/info-details/federal-employment-taxes-on-pfml-benefits

Source: IRS Revenue Ruling 2025-4
Source: DFML Tax Guidance Memorandum

Application Process (General Overview)

For Employees:

Before Taking Leave:

  • Notify employer of need for leave
  • Determine if employer has private plan or uses state plan
  • Gather necessary documentation (medical certifications, etc.)

Filing Application:

  • Apply through DFML online portal or employer’s private plan
  • Provide required documentation
  • Submit application no more than 60 days before leave start date
  • May apply up to date leave begins

After Application:

  • DFML or private plan reviews application
  • Approval or denial typically within specified timeframe
  • If approved, benefits paid weekly
  • Employee maintains job protection during approved leave

For Employers:

Responsibilities:

  • Post required PFML notices in workplace
  • Provide individual notices to employees
  • Collect and remit contributions quarterly
  • Maintain records
  • Coordinate with DFML on benefit determinations
  • Continue health insurance during leave (in most cases)
  • Reinstate employee to same or equivalent position after leave

Source: PFML Application Process – https://www.mass.gov/info-details/paid-family-and-medical-leave-pfml-overview-and-benefits

Relationship with Other Leave

Federal Family and Medical Leave Act (FMLA):

  • PFML and FMLA may run concurrently
  • FMLA provides job protection (unpaid)
  • PFML provides income replacement (paid)
  • Employers must comply with both if applicable

Massachusetts Earned Sick Time:

  • Separate program with different requirements
  • May be used concurrently or employer may require use during PFML
  • Coordination depends on employer policy

Employer-Provided Benefits:

  • Employers may require use of accrued paid time during PFML
  • Employer benefits may supplement PFML benefits
  • Specific coordination depends on employer policies

Note: Coordination of multiple leave programs is complex. Consult DFML and legal counsel for guidance.

Source: DFML Guidance on Leave Coordination

Private Plans

Employers may apply for exemption from state PFML program if they offer private plan that:

  • Provides benefits equal to or greater than state program
  • Meets all requirements specified in regulations
  • Receives approval from DFML

Note: Private plan requirements are detailed and specific. Employers considering private plans should consult DFML and benefits consultants.

Source: Private Plan Requirements – https://www.mass.gov/info-details/paid-family-and-medical-leave-pfml-overview-and-benefits

Resources and Guidance

Massachusetts Department of Family and Medical Leave:

For Employers:

For Employees:

  • Apply for Benefits: Through online portal
  • FAQs: Available on DFML website
  • Appeals: Process information available from DFML

⚠️ REMINDER: PFML is a complex program with detailed requirements for contributions, eligibility, benefits, and tax treatment. This information is general background only. Consult DFML and professional advisors (legal, tax, HR) for specific guidance on compliance and benefit determinations.

Anti-Discrimination Laws in Massachusetts

Legal Framework

Statutory Authority: Massachusetts General Laws Chapter 151B
Administering Agency: Massachusetts Commission Against Discrimination (MCAD)
Official Source: https://www.mass.gov/orgs/massachusetts-commission-against-discrimination

Agency Contact Information:

Boston Office:

  • One Ashburton Place, Room 601, Boston, MA 02108
  • Phone: (617) 994-6000
  • Fax: (617) 994-6024

Springfield Office:

  • 436 Dwight Street, Room 220, Springfield, MA 01103
  • Phone: (413) 739-2145
  • Fax: (413) 784-1056

New Bedford Office (Satellite):

  • 800 Purchase Street, Room 501, New Bedford, MA 02740
  • Open select days – call for schedule

Worcester Office (Satellite):

  • 484 Main Street, Room 320, Worcester, MA 01608
  • Open select days – call for schedule

Protected Categories

According to M.G.L. c. 151B, discrimination is generally prohibited based on:

Protected Characteristics:

  • Race
  • Color
  • Religious creed
  • National origin
  • Ancestry
  • Sex (including pregnancy, childbirth, and related conditions)
  • Gender identity
  • Sexual orientation
  • Age (40 and over for employment; all ages for other areas)
  • Genetic information
  • Military service or status
  • Disability (mental or physical)

Protected Activities Include (generally):

  • Hiring, firing, and terms and conditions of employment
  • Compensation and benefits
  • Promotion and demotion decisions
  • Harassment creating hostile work environment
  • Retaliation for asserting rights or participating in investigations

Source: M.G.L. c. 151B, §§ 1, 4
Source: MCAD Overview – https://www.mass.gov/orgs/massachusetts-commission-against-discrimination

Application to Remote Workers

According to general principles:

Coverage:

  • Anti-discrimination protections generally apply to remote workers in the same manner as on-site workers
  • Physical work location does not affect coverage under Massachusetts law
  • Remote workers performing services for Massachusetts employers are typically protected

Prohibited Conduct Applies to:

  • Hiring decisions for remote positions
  • Terms and conditions of remote work
  • Compensation and benefits for remote workers
  • Harassment via electronic communications
  • Retaliation against remote workers

Note: Specific applications may vary by circumstance. Consult MCAD or employment attorney for guidance on particular situations.

Filing Complaints

Process Overview (according to MCAD):

Timing:

  • Complaints must generally be filed within 300 days of alleged discrimination
  • Timely filing is critical – deadlines are strictly enforced

How to File:

  • Online through MCAD website
  • By mail to MCAD office
  • In person at MCAD office (appointments may be required)

What Happens After Filing:

  • MCAD investigates complaint
  • Parties may participate in investigation
  • MCAD may facilitate resolution through mediation or conciliation
  • If not resolved, may proceed to public hearing
  • Complainant also has option to file in court

Source: MCAD Complaint Process – https://www.mass.gov/orgs/massachusetts-commission-against-discrimination

Resources

Massachusetts Commission Against Discrimination:

For Legal Advice:

  • Employment discrimination attorney
  • Massachusetts Bar Association Referral: (617) 338-0610
  • Legal aid organizations for qualifying individuals

Tax Information for Massachusetts

Massachusetts State Income Tax

Administering Agency: Massachusetts Department of Revenue
Official Source: https://www.mass.gov/orgs/massachusetts-department-of-revenue

Agency Contact Information:

General Tax Structure (As of 2025-2026)

According to Massachusetts Department of Revenue:

Personal Income Tax Rates:

Standard Rate: 5% flat tax on Massachusetts taxable income over $8,000

Millionaire’s Tax (Surtax): Additional 4% surtax on annual taxable income over $1,000,000

  • Effective total rate for income over $1 million: 9% (5% + 4%)
  • Surtax effective beginning tax year 2023

What This Generally Means:

  • Income up to $8,000: Generally not subject to Massachusetts income tax
  • Income from $8,000 to $1,000,000: Taxed at 5%
  • Income over $1,000,000: First $1M taxed at 5%, amount over $1M taxed at 9%

Example (Illustrative Only):
Individual with $1,200,000 taxable income:

  • First $1,000,000 × 5% = $50,000
  • Next $200,000 × 9% = $18,000
  • Total Massachusetts tax: $68,000

Note: This is a simplified example. Actual tax calculations involve exemptions, deductions, and other factors. Consult tax professionals.

Source: Massachusetts Personal Income Tax Information – https://www.mass.gov/info-details/personal-income-tax-for-residents
Source: M.G.L. c. 62

Capital Gains Tax Rates

Massachusetts taxes different types of capital gains at different rates:

Short-Term Capital Gains:

  • Assets held 1 year or less: 8.5%

Long-Term Capital Gains from Collectibles:

  • Collectibles held more than 1 year: 12%

Other Long-Term Capital Gains:

  • Most other capital assets held more than 1 year: 5% (regular income tax rate)

Note: Capital gains taxation is complex. Consult tax professionals for specific situations.

Source: Massachusetts Department of Revenue capital gains guidance

Tax Exemptions and Deductions

Personal Exemptions (2025 tax year):

According to Massachusetts DOR, personal exemptions may be available based on filing status:

  • Single: $4,400
  • Head of Household: $6,800
  • Married Filing Jointly: $8,800
  • Married Filing Separately: $4,400

Note: Massachusetts does NOT have a standard deduction like federal taxes.

Certain Income Exempted:

  • U.S. military pensions (not taxed by Massachusetts)
  • Veterans Administration disability compensation
  • Certain Social Security benefits may be exempt
  • Other specific exemptions as provided in statute

Deductions:

  • Certain itemized deductions may be available (different from federal)
  • Specific rules apply – consult Massachusetts tax forms and instructions

Source: Massachusetts Personal Income Tax Forms and Instructions
Source: M.G.L. c. 62, §§ 3, 10

Application to Remote Workers

General Principle (according to tax authorities):

Sourcing of Income:

  • Income is generally sourced to the state where services are physically performed
  • Remote workers performing services from Massachusetts locations are generally subject to Massachusetts income tax
  • Employer location generally not the determining factor

Multi-State Situations:

For remote workers who:

  • Live in Massachusetts and work for out-of-state employer: Generally owe Massachusetts tax on income
  • Live in one state and work remotely in Massachusetts: May owe Massachusetts tax for work performed in Massachusetts
  • Split time between multiple states: Income may be apportioned; complex rules apply

Tax Credits:

  • Massachusetts may provide credits for taxes paid to other states
  • Reciprocal agreements may exist with some states
  • Complex multi-state tax issues require professional guidance

⚠️ Important: Multi-state taxation is extremely complex. Remote workers with multi-state situations should consult tax professionals familiar with state tax laws and allocation rules.

Source: Massachusetts DOR guidance on nonresident taxation
Source: General tax principles on income sourcing

Withholding Tax for Employers

General Requirements (according to Massachusetts DOR):

Employers with employees performing services in Massachusetts generally must:

  • Register for Massachusetts withholding tax account
  • Withhold Massachusetts income tax from employee wages
  • Remit withheld taxes to Massachusetts DOR
  • File required quarterly and annual returns
  • Provide W-2 forms to employees

Withholding Rate: Generally 5% (but verify with DOR for current requirements and methods)

Out-of-State Employers:

  • Out-of-state employers with Massachusetts employees generally must register and withhold
  • Specific requirements depend on circumstances
  • Consult Massachusetts DOR for compliance obligations

Source: Massachusetts Employer Withholding Tax Guide
Source: M.G.L. c. 62B

Unemployment Insurance Tax

Administering Agency: Massachusetts Department of Unemployment Assistance (DUA)
Official Source: https://www.mass.gov/orgs/department-of-unemployment-assistance

General Structure (2025):

Taxable Wage Base: First $15,000 of wages per employee per calendar year

Tax Rates (2025 – Schedule D):

  • Positive-rated employers: 0.83% – 4.61%
  • Negative-rated employers: 6.19% – 12.65%
  • COVID-19 Recovery Assessment: 0.21% – 3.2% (additional)
  • Combined effective rates: 1.04% – 15.85%

New Employer Rates:

  • Non-construction: 2.13%
  • Construction: 5.45%

Experience Rating:

  • Rates based on employer’s unemployment claim history
  • Reserve ratio method used to calculate experience rate
  • Rates assigned based on schedule in effect (changes annually based on trust fund balance)

Projected Future Rates:

  • Schedule F projected for 2026-2027
  • Schedule G (highest rates) projected for 2028
  • Employers should plan for increasing rates

Additional Contributions:

  • Workforce Training Contribution: 0.056%
  • Health Insurance Contribution: 5%

Source: DUA Employer Contribution Information – https://www.mass.gov/info-details/learn-about-ui-contribution-rates
Source: M.G.L. c. 151A, § 14

Paid Family and Medical Leave Contributions

See Part 4 for detailed PFML contribution information.

Summary (2026):

  • Total contribution rate: 0.88% of eligible wages
  • Split between medical leave (0.70%) and family leave (0.18%)
  • Employer/employee portions depend on employer size
  • Capped at Social Security wage base

Source: DFML – https://www.mass.gov/orgs/department-of-family-and-medical-leave

Tax Filing and Payment

Filing Deadlines (Individual Income Tax):

Annual Return:

  • Generally due April 15 (following federal deadline)
  • Extensions available (automatic 6-month extension with federal extension)
  • Payment still due by April 15 even with extension

Estimated Tax Payments:

  • Required if withholding does not cover tax liability
  • Generally due quarterly: April 15, June 15, September 15, January 15

Where to File:

  • Online through MassTaxConnect (recommended)
  • By mail to addresses specified by DOR
  • Through tax professionals

Payment Options:

  • Direct debit from bank account
  • Credit/debit card (convenience fee may apply)
  • Check or money order by mail
  • Payment plans available for qualifying taxpayers

Source: Massachusetts DOR Filing Information – https://www.mass.gov/dor

Tax Resources

Massachusetts Department of Revenue:

For Tax Preparation Assistance:

  • Certified Public Accountant (CPA)
  • Enrolled Agent (EA)
  • Tax Attorney
  • Licensed Tax Preparer

Free Tax Assistance:

  • VITA (Volunteer Income Tax Assistance) for qualifying taxpayers
  • Massachusetts Free File for eligible individuals

Resources

Massachusetts State Agencies

Massachusetts Attorney General’s Office – Fair Labor Division

Massachusetts Department of Labor Standards

Massachusetts Department of Industrial Accidents

Massachusetts Department of Family and Medical Leave

Massachusetts Department of Unemployment Assistance

Massachusetts Department of Revenue

Massachusetts Commission Against Discrimination (MCAD)

Federal Agencies

U.S. Department of Labor – Wage and Hour Division

Internal Revenue Service (IRS)

Equal Employment Opportunity Commission (EEOC)

Legal Assistance

Massachusetts Bar Association

Legal Aid Organizations (for qualifying individuals):

Additional Resources

MassLegalHelp.org

Mass.gov

  • Official Massachusetts government website
  • Comprehensive information on state laws and programs
  • Website: https://www.mass.gov

Frequently Asked Questions

General Questions

Q1: Do Massachusetts employment laws apply to remote workers?

A: According to general principles, Massachusetts employment laws typically apply based on where work is physically performed, not where the employer is located. A remote worker performing services from a location in Massachusetts would generally be subject to Massachusetts employment laws. However, specific applications depend on the particular law, employment relationship, and circumstances. Multi-state situations can be complex. Consult legal counsel for specific situations.

Q2: I live in Massachusetts but work remotely for a company in another state. Which state’s laws apply?

A: This depends on the specific law in question. Generally:

  • Wage and hour laws typically apply based on where work is performed (Massachusetts)
  • Workers’ compensation may apply based on various factors
  • Income tax generally applies based on where services are performed
  • Other laws may have different rules

Multi-state employment situations are complex and may involve conflicting or overlapping laws. Consult employment attorneys and tax professionals familiar with multi-state employment issues.

Q3: Does my out-of-state employer need to register in Massachusetts if I work remotely from Massachusetts?

A: According to general principles, employers with employees working in Massachusetts typically need to:

  • Register for Massachusetts withholding tax
  • Obtain unemployment insurance account
  • Obtain workers’ compensation coverage
  • Comply with Massachusetts employment laws

Specific registration requirements depend on circumstances. Employers should consult Massachusetts agencies and legal counsel for compliance obligations.

Minimum Wage and Overtime

Q4: What is the current Massachusetts minimum wage?

A: According to the Massachusetts Department of Labor Standards, as of December 2025, the state minimum wage is $15.00 per hour (effective since January 1, 2023). The service rate for tipped employees is $6.75 per hour (tips must bring total to at least $15.00/hour). No increases are currently scheduled for 2026, but legislation has been proposed. Verify current rates with Massachusetts DLS or Attorney General’s Office.

Q5: Do I get overtime for working more than 8 hours in a day?

A: No. Massachusetts law generally requires overtime (1.5x regular rate) only for hours worked over 40 in a workweek. Unlike some other states, Massachusetts does not have daily overtime requirements. Overtime is calculated on a weekly basis.

Q6: Am I exempt from overtime?

A: This depends on multiple factors including your job duties, how you are paid, and your salary level. Generally, to be exempt you must meet tests for:

  1. Salary basis (paid predetermined salary not subject to reduction)
  2. Salary level (meet minimum threshold)
  3. Duties (perform exempt-level duties)

Job title alone does not determine exemption status. Classification is complex and should be evaluated by legal counsel. Misclassification can result in significant liability.

Q7: I’m paid on salary. Does that mean I’m not entitled to overtime?

A: Not necessarily. Being paid on salary does not automatically make you exempt from overtime. You must meet all three tests (salary basis, salary level, and duties). Many salaried employees are still entitled to overtime if they don’t meet the duties test. Consult the Massachusetts Attorney General’s Office or legal counsel for classification guidance.

Employee Classification

Q8: How do I know if I’m properly classified as an independent contractor?

A: Massachusetts uses the strict ABC test for worker classification. ALL THREE prongs must be satisfied:

  • Part A: You are free from control and direction
  • Part B: Services performed outside employer’s usual course of business
  • Part C: You are customarily engaged in an independently established trade/business

Massachusetts has one of the strictest classification tests in the United States. If you’re unsure about your classification, consult the Massachusetts Attorney General’s Office at (617) 727-3465 or an employment attorney. Misclassification may entitle you to employee benefits and protections.

Q9: Can my employer classify me as an independent contractor just because I work from home?

A: No. Working remotely does not make someone an independent contractor. Classification depends on the ABC test, not work location. Many remote workers are properly classified as employees. If you believe you are misclassified, you may file a complaint with the Massachusetts Attorney General’s Office or consult an employment attorney.

Q10: What should I do if I think I’m misclassified?

A: If you believe you are misclassified as an independent contractor:

  • Contact Massachusetts Attorney General’s Fair Labor Division: (617) 727-3465
  • File a complaint online through Mass.gov
  • Consult an employment attorney
  • Document your working relationship

You are protected against retaliation for asserting your rights. Misclassification may entitle you to back wages, benefits, and other remedies.

Paid Sick Leave

Q11: Am I entitled to paid sick leave in Massachusetts?

A: According to Massachusetts law, most employees who work in Massachusetts may be entitled to earn sick time. Whether it must be paid depends on employer size:

  • Employers with 11+ employees: Generally must provide paid sick time
  • Employers with 10 or fewer employees: Generally must provide sick time, but it may be unpaid

Sick time typically accrues at 1 hour per 30 hours worked, up to 40 hours per year. Consult the Massachusetts Attorney General’s Office for specific eligibility questions.

Q12: Can my employer deny my request to use earned sick time?

A: Generally, if you have accrued sick time and are using it for qualifying purposes (your own illness, family member care, or domestic violence situations), your employer cannot deny the request. However, employers may have reasonable notice and documentation policies. If your request is improperly denied, contact the Massachusetts Attorney General’s Fair Labor Division at (617) 727-3465.

Workers’ Compensation

Q13: Am I covered by workers’ compensation if I work from home?

A: Coverage depends on whether an injury “arises out of and in the course of employment.” This is highly fact-specific. Generally, injuries sustained while performing work duties during work hours in a designated work area may be compensable, but each case must be evaluated individually by the Massachusetts Department of Industrial Accidents. If you are injured while working from home:

  • Report to employer immediately
  • Seek medical attention
  • Contact DIA: (617) 727-4900
  • Consult workers’ compensation attorney

Do not assume coverage or non-coverage without professional evaluation.

Q14: What should I do if I’m injured while working from home?

A: Take these steps immediately:

  1. Seek medical attention (call 911 if emergency)
  2. Report injury to your employer as soon as possible
  3. Document the circumstances
  4. Follow employer’s reporting procedures
  5. Contact Massachusetts DIA: (617) 727-4900
  6. Consult workers’ compensation attorney if claim is denied or you need guidance

Timely reporting is critical. Do not delay.

Paid Family and Medical Leave (PFML)

Q15: How much PFML leave can I take?

A: According to Massachusetts PFML law, eligible employees may take:

  • Up to 20 weeks for own medical leave
  • Up to 12 weeks for family leave
  • Up to 26 weeks for military caregiver leave
  • Maximum 26 weeks total per benefit year (with some exceptions)

Specific eligibility depends on meeting wage requirements and other criteria. Use the DFML benefit calculator or contact DFML at (833) 344-7365.

Q16: How much will I be paid during PFML leave?

A: Benefit amounts are calculated based on your Individual Average Weekly Wage (IAWW) and the State Average Weekly Wage. Generally:

  • Lower earners: Up to 80% of IAWW
  • Higher earners: Partial replacement with formula
  • Maximum weekly benefit (2026): $1,230.39

Use DFML’s benefit calculator for estimates. Actual benefits determined by DFML.

Q17: Do I have to pay taxes on PFML benefits?

A: It depends. Starting January 1, 2026:

  • Medical leave benefits may be subject to FICA taxes if your employer has 25+ employees
  • Family leave benefits are generally not subject to FICA taxes
  • Income tax may apply (you can elect withholding)

Consult tax professionals and review DFML tax guidance for your specific situation.

Discrimination and Retaliation

Q18: Am I protected from discrimination as a remote worker?

A: Yes. Massachusetts anti-discrimination laws (Chapter 151B) generally apply to remote workers in the same manner as on-site workers. Discrimination based on protected characteristics (race, color, religion, national origin, sex, gender identity, sexual orientation, age, disability, etc.) is prohibited regardless of work location. If you experience discrimination, contact MCAD at (617) 994-6000 or consult an employment attorney.

Q19: Can my employer retaliate against me for asserting my rights?

A: No. Massachusetts law prohibits retaliation for:

  • Asserting wage and hour rights
  • Using earned sick time
  • Filing workers’ compensation claims
  • Reporting discrimination or harassment
  • Participating in investigations
  • Other protected activities

If you experience retaliation, contact the appropriate agency immediately and consult an employment attorney.

Taxes

Q20: Do I have to pay Massachusetts income tax if I work remotely from Massachusetts for an out-of-state company?

A: Generally, yes. Massachusetts taxes income based on where services are physically performed. If you perform work from a Massachusetts location, you would typically owe Massachusetts income tax on that income, regardless of employer location. However, you may receive credit for taxes paid to other states in some situations. Multi-state tax issues are complex. Consult tax professionals for your specific situation.

Q21: Does my employer need to withhold Massachusetts taxes?

A: Generally, employers with employees performing services in Massachusetts must withhold Massachusetts income tax, regardless of employer location. Out-of-state employers should consult Massachusetts Department of Revenue and tax professionals about registration and withholding obligations.

Q22: How do I file Massachusetts state taxes?

A: Massachusetts residents and those with Massachusetts-source income file Form 1 (Resident) or Form 1-NR/PY (Nonresident/Part-Year Resident) by April 15. File online through MassTaxConnect at https://mtc.dor.state.ma.us/mtc/ or by mail. Consult tax professionals for preparation assistance.

Multi-State Issues

Q23: I split my time working from home in Massachusetts and from an office in another state. How do I handle taxes?

A: This is complex and depends on specific circumstances. Generally:

  • Income may need to be apportioned between states
  • You may need to file returns in multiple states
  • Tax credits may be available for taxes paid to other states
  • Withholding may need to be adjusted

Multi-state taxation requires professional guidance. Consult tax professionals experienced in multi-state tax issues.

Q24: If I move to another state but keep working for my Massachusetts employer remotely, which state’s laws apply?

A: This depends on the specific law:

  • New state’s wage and hour laws likely apply (based on where work is performed)
  • New state’s income tax likely applies
  • Other laws vary by jurisdiction

Notify your employer immediately if you move to another state. Consult legal and tax professionals about the implications of relocating.

Getting Help

Q25: How can I get legal advice about my specific situation?

A: Contact:

  • Massachusetts Bar Association Lawyer Referral Service: (617) 338-0610
  • Employment attorney: Search at https://www.massbar.org
  • Legal aid: If you qualify, contact Greater Boston Legal Services at (617) 371-1234 or find local legal aid at https://www.lawhelp.org/ma

Q26: Where can I file a complaint if my employer is violating Massachusetts law?

A: Depends on the violation:

  • Wage/hour violations: MA Attorney General – (617) 727-3465
  • Discrimination: MCAD – (617) 994-6000
  • Workers’ comp issues: MA DIA – (617) 727-4900
  • PFML issues: DFML – (833) 344-7365
  • Unemployment issues: MA DUA – (877) 626-6800

You are protected against retaliation for filing complaints.

Others

California
New York
Connecticut
Rhode Island
Vermont

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.