This past month, Governor Baker signed into law the most comprehensive change for workers in Massachusetts in decades, which the media has dubbed “the grand bargain.” The new law incrementally increases the minimum wage to $15 over five years, phases out time and half hourly wages over five years, establishes a paid medical and family leave program for all Massachusetts workers and creates a permanent sales tax holiday in August. The new law represents a compromise based on discussions with a coalition formed by the Massachusetts Retailers Association and a separate coalition formed by Raise Up Massachusetts, who each were able to qualify their respective questions for the November 2018 ballot. This compromise represents months of negotiations, with each party having made concessions in order to reach a final agreement. As a result of this compromise, voted on by the Legislature on June 20th, the respective groups withdrew their ballot questions before the July 3rd deadline.
Under the “grand bargain”, the minimum wage will increase to $15/hour over five years while the tipped minimum wage will increase to $6.75/hour also over five years. The increases will begin January 1, 2019 when the minimum wage increases by one dollar to $12/hour, then will increase incrementally by $0.75 over the following four years until it reaches $15. Tipped worker wages will be brought up to the state minimum wage based on earnings each day, rather than the current policy of calculating the difference between tips and minimum wage each pay cycle. This will ensure that restaurant and other tipped workers face more equitable schedules each week, removing the potential of giving preferential shifts to certain employees.
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