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Massachusetts Employment Law Compliance Guide for Small Businesses
Very High Complexity
Massachusetts has extensive employment protections including mandatory paid family and medical leave (PFML), paid sick leave, pay transparency, strict independent contractor classification (ABC test), and strong non-compete restrictions. Massachusetts also requires anti-harassment policies and has broad anti-discrimination protections.
Key Numbers
TIPPED WAGE
$6.75 (tip credit allowed)
Compliance Requirements
⚠Pay Transparency Required
Salary ranges must be included in job postings, including internal promotions. Non-compliance triggers fines and private lawsuits.
⚠Paid Leave Mandatory
Employers must provide paid sick leave (and potentially paid family/medical leave). You must track accrual, provide notice, and display updated workplace posters.
★Tip Credit: $6.75 (tip credit allowed)
Employers may pay tipped employees a reduced cash wage if tips bring total compensation to at least the minimum wage.
Federal Thresholds That Apply in Massachusetts
These federal requirements apply to all Massachusetts employers based on headcount:
1+ employees: FLSA (wage and hour), IRCA (I-9 verification), EPPA (polygraph), USERRA (military leave)
15+ employees: Title VII (discrimination), ADA (disability), GINA (genetic information), Pregnant Workers Fairness Act
20+ employees: ADEA (age discrimination), COBRA (health continuation)
50+ employees: FMLA (12 weeks unpaid leave), ACA (affordable health coverage or $2,880/employee penalty), EEO-1 reporting
100+ employees: WARN Act (60-day notice for mass layoffs)
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This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a licensed attorney for advice specific to your business. Last updated March 2026.