The headline numbers
Reached $15.00 January 2023 per Grand Bargain (2018). No statewide indexing yet — increases require legislation.
Massachusetts allows employers to take a tip credit of $8.25/hour against the full state minimum wage. That means the employer can pay you as little as $6.75/hour in direct wage, as long as your tips bring total earnings to at least $15.00/hour for the pay period. If tips fall short, the employer must make up the difference.
Tip pool rules
Stricter than federal: managers excluded; written tip policy required; no deductions for credit card processing fees on tips.
Universal rules that apply in every state regardless of tip credit status:
- Managers and supervisors cannot keep any portion of tips, even in a valid tip pool. This is a federal rule under FLSA Section 203(m)(2)(B) and applies in Massachusetts.
- Workers must keep all tips minus valid tip pool / tip-out contributions.
- If the employer uses a tip credit, only customarily tipped employees can be in the tip pool. To include BOH (cooks, dishwashers), the employer must pay full minimum wage to all participants.
Sidework and the 80/20 rule in Massachusetts
Massachusetts maintains the 80/20 rule under state guidance and case law. Time over 20% on non-tipped sidework requires full state minimum wage.
The federal 80/20 rule was struck down by the 5th Circuit in Restaurant Law Center v. DOL (2024) and is no longer enforceable as a federal regulation. Whether sidework time over 20% triggers full-minimum-wage protection in Massachusetts depends entirely on state-level enforcement. Fortunately, Massachusetts has its own active state-level sidework protections — see above.
Local minimums that may apply
Several cities and counties in the U.S. set higher minimum wages than their state. Local minimums always supersede state minimums where applicable. Check whether your city has its own ordinance:
- No major city-level minimum wage ordinances in Massachusetts currently — the state minimum applies statewide for tipped workers.
Notable state-specific items
- Question 5 (2024) to eliminate tip credit failed
- State maintains pre-2018 federal 80/20 standard regardless of federal status
- Strict written-notice requirements for tip credit
How to verify the current numbers
Wages, indexed minimums, and tip credit rules change. Always cross-check before relying on specifics:
- State labor agency: https://www.mass.gov/orgs/department-of-labor-standards
- State revenue agency (for tax info): https://www.mass.gov/orgs/massachusetts-department-of-revenue
- Federal DOL Wage and Hour Division: dol.gov/agencies/whd