Mass-Peculiarities: 2017 | an EMPLOYER’S GUIDE to WAGE & HOUR LAW in the BAY STATE
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Mass-Peculiarities: 2017 | AN EMPLOYER’S GUIDE TO WAGE & HOUR LAW IN THE BAY STATE 3RD EDITION Authored by the Wage & Hour Litigation Practice Group | Seyfarth Shaw LLP, Boston Office MASSACHUSETTS PECULIARITIES An Employer’s Guide to Wage & Hour Law in the Bay State ____________________________________________________________________________ Third Edition Editors in Chief C.J. Eaton Cindy Westervelt Wage & Hour Litigation Practice Group Seyfarth Shaw LLP Boston, Massachusetts Richard L. Alfred, Chair and Senior Editor Patrick J. Bannon Hillary J. Massey Anne S. Bider Kristin G. McGurn Timothy J. Buckley Barry J. Miller Anthony S. Califano Kelsey P. Montgomery Ariel D. Cudkowicz Molly Clayton Mooney C.J. Eaton Alison H. Silveira Robert A. Fisher Dawn Reddy Solowey Beth G. Foley Lauren S. Wachsman James M. Hlawek Cindy Westervelt Bridget M. Maricich Jean M. Wilson Seyfarth Shaw LLP Two Seaport Lane, Suite 300 Boston, Massachusetts 02210 (617) 946-4800 www.seyfarth.com © 2017 Seyfarth Shaw LLP All Rights Reserved Legal Notice Copyrighted © 2017 SEYFARTH SHAW LLP. All rights reserved. Apart from any fair use for the purpose of private study or research permitted under applicable copyright laws, no part of this publication may be reproduced or transmitted by any means without the prior written permission of Seyfarth Shaw LLP. Important Disclaimer This publication is in the nature of general commentary only. It is not legal advice on any specific issue. The authors disclaim liability to any person in respect of anything done or omitted in reliance upon the contents of this publication. Readers should refrain from acting on the basis of any discussion contained in this publication without obtaining specific legal advice on the particular circumstances at issue. Comprehensive legal advice on any particular situation is beyond the scope of this publication. While we have tried to be accurate and up to date, the matters discussed herein are continuously subject to change. Because application of the law depends on the particular circumstances of each situation, readers should consult an attorney before acting. Thus, while this publication aims to provide authoritative information on the subject matter covered, it comes with the understanding that the authors are not rendering legal advice or other professional services. From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations. © 2017 Seyfarth Shaw LLP Massachusetts Wage & Hour Peculiarities, 3d ed. Table of Contents Page Introduction .......................................................................................................1 I. Hours of Work .........................................................................................2 A. The Workweek ..............................................................................................2 B. Sunday and Holiday Work ............................................................................2 1. Default “Closure Rule”............................................................................... 2 2. Exemptions ................................................................................................. 3 3. Permits for Necessary Sunday Work or Labor ........................................... 6 4. Employees Who Work in Retail Stores ...................................................... 6 a. Sunday Premium Pay...................................................................... 7 b. Voluntariness of Work on Sunday.................................................. 7 5. Legal Holidays............................................................................................ 8 6. Penalties for Violation of Sunday and Holiday Work Laws..................... 11 C. Day of Rest Laws ........................................................................................12 1. One Day of Rest in Seven......................................................................... 12 2. Sunday Work Without a Day Off ............................................................. 13 3. Exemptions to the One Day of Rest in Seven and the Sunday Work Without a Day Off Provisions................................................................... 13 4. Penalties for Violation .............................................................................. 14 D. Compensable “Working Time”...................................................................14 1. Meal Breaks .............................................................................................. 15 a. Exemptions ................................................................................... 16 © 2017 Seyfarth Shaw LLP Massachusetts Wage & Hour Peculiarities, 3d ed. | i b. Liability for Missed Breaks and Failure to Compensate Employees for Work Performed During Breaks........................... 16 2. On-Call Time ............................................................................................ 18 3. Reporting Pay............................................................................................ 19 4. Sleep Time ................................................................................................ 20 5. Compensable Travel Time........................................................................ 20 a. Commuting Time.......................................................................... 21 b. Overnight Travel........................................................................... 22 c. Travel in a Company Vehicle ....................................................... 22 II. Mandated Time Off and Massachusetts Leave Laws............................23 A. Time Off to Vote .........................................................................................23 B. Court Appearances ......................................................................................23 1. Massachusetts Jury Duty Leave................................................................ 23 2. Massachusetts Employees Subpoenaed to Testify in a Criminal Action........................................................................................................ 24 C. Leave for Veterans Participating in Memorial Day or Veterans Day Activities .....................................................................................................24 D. Small Necessities Leave Act .......................................................................25 E. Massachusetts Parental Leave Act ..............................................................27 F. Proration of Bonus Payments to Employees on FMLA and MPLA Leave ...........................................................................................................27 G. The Massachusetts Earned Sick Time Law................................................. 28 1. Pay for Time Off Pursuant to the ESTL ................................................... 30 2. Notification of Intent to Use Sick Time and Employee Certification .............................................................................................. 30 ii | Massachusetts Wage & Hour Peculiarities, 3d ed. © 2017 Seyfarth Shaw LLP 3. Effect of Termination and Breaks in Service and Recordkeeping and Notice Requirements.......................................................................... 31 H. Massachusetts Leave for Domestic Violance Victims and Family Members......................................................................................................32 III. Payment of Wages .................................................................................34 A. Frequency and Timing of Payment .............................................................35 1. How Frequently Must Wages Be Paid?.................................................... 35 2. When Must Wages Be Paid?..................................................................... 35 B. Wages Under Massachusetts Law...............................................................36 1. What Is Included in Wages (and What Is Not)? ....................................... 36 2. Commissions............................................................................................. 37 3. Vacation Pay ............................................................................................. 37 a. Caps and “Use It or Lose It” Policies ........................................... 38 b. General “Leave” Category............................................................ 39 c. Designation of Accrual Rate......................................................... 39 d. Changes to Vacation Policies........................................................ 40 4. Severance Payments.................................................................................. 40 5. Bonuses..................................................................................................... 40 a. Discretionary Bonuses .................................................................. 40 b. Earned Bonuses............................................................................. 41 6. Stock ......................................................................................................... 41 7. Expense Reimbursements ......................................................................... 41 C. How Must Wages Be Paid?.........................................................................42 1. Checks and Drafts..................................................................................... 42 © 2017 Seyfarth