New Holiday Premium Pay and Tips Law in Massachusetts
The “grand bargain” tucked into the Economic Stimulus package will bring some changes to hourly wage ruled rules, phasing out the holiday premium pay by 2023 and broadening the definition of “wait staff employee” covered by the Wage Act. Under the new laws, employers will no longer be required to pay higher wages to employees who work on the holidays. In addition, managers in may quick service restaurants may now share in the tip pools collected from customers so long as they are not performing managerial functions that particular day.
While the changes upset many employees long used to the higher pay and better tips, business leaders complained bitterly about their costs and ability to remain in business, forcing action at the legislative level not seen for some time.
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