Tuesday, May 13, 2014

Massachusetts Overtime Law

In Massachusetts, employers have to pay “non-exempt” hourly or salaried employee the compensation of overtime hours worked if the employee works for more than 40 hours in a workweek. The required overtime premium rate is one-and-one-half times the employee’s “regular rate” of compensation.

In Massachusetts, overtime premium compensation for “time and one-half” need not to be applied on any given day that employee works for more than 8 hours, but only be paid for hours worked in excess of 40 in a given workweek.

The “regular hourly rate” of pay of an employee is determined by dividing his total remuneration (except for certain statutory exclusions) in any workweek by the total number of hours actually worked by the employee in that workweek. Under certain circumstances, this can include bonuses, commissions, and other kinds of payments to employees.

Who are deemed “exempt employees” that employers do not have to pay them overtime compensation? Massachusetts law set forth specific occupations and industries that fall within the exemptions, there are general exclusions for bona fide “executive,” “administrative,” or “professional” employees and for persons employed in the capacity of “outside salesman.” For a list of those exempt employees, click https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151/Section1a