Law Changes 2023

Important Changes to Laws and Mandates in 2023

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As we greet 2023, it is important to be aware of several changes to laws and policies that will have an impact on the business climate.  Laws pertaining to minimum wage, retail premium pay and PFMLA take effect at the start of the year.  In terms of November’s ballot questions, the Fair Share Amendment will also be put into place on January 1.

Minimum Wage/ Premium Pay: On January 1, 2023, several changes related to minimum wage are set to take effect as the final years’ worth of changes are enacted by the Grand Bargain legislation.

  • The Commonwealth’s minimum wage experiences a 75-cent bump when it rises from $14.25 an hour up to $15.00 an hour.
  • The wage for tipped employees is also facing an increase of 60-cents, bringing it from $6.15 an hour to $6.75 an hour.
  • The Retail Premium Pay mandate for Sundays and holidays will be eliminated.
  • State Resource: Minimum wage and overtime information | Mass.gov

Paid Family Medical Leave (PFML):

  • Maximum weekly benefits under PFML are increasing from $1,084.31 to $1,129.82.
  • Employer contribution rates will be lowered:
  • Employers with 25 or more covered individuals will now only need to pay 0.63 percent of eligible employee wages, down from 0.68 in 2022.
  • Employers with fewer than 25 covered individuals will see their contribution rate fall from 0.34 percent down to 0.318 percent starting on January 1, 2023.
  • State Resources:

Massachusetts Fair Share Amendment: After being voted in favor by fifty-two percent in November, the new Fair Share Amendment (Article CXXI of the Articles of Amendment to the Massachusetts Constitution) will take effect on January 1, 2023

  • The law will impose a surtax of 4 percent on any portion of taxable income in excess of $1,000,000 that is reported on any return related to those taxes.