2 MA Laws That May Impact Your Wallet Go Into Effect Friday

Boston MA

29 December, 2020

11:10 AM

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In 2018, Gov. Charlie Baker signed what was known as the "grand bargain." In an effort to keep some initiatives off the ballot, lawmakers agreed to gradually raise the minimum wage and institute a 26-week paid family and medical leave. On Friday, Jan. 1, the minimum wage ticks up another 75 cents and the leave program goes into effect. The changes will provide some assistance to many struggling Massachusetts residents, but challenge some struggling businesses preparing for unemployment insurance costs to sharply increase and health insurance premiums to grow by nearly 8 percent. Baker has filed a bill that would limit the growth of unemployment insurance costs. Here's a look at what the increased minimum wage and paid family and medical leave could mean for you: Minimum wage The march to $15 per hour continues Friday, when Massachusetts minimum wage increases from $12.75 to $13.50. The minimum wage will increase from to $14.25 in 2022 and $15 in 2023. Friday's bump will give Massachusetts the fourth-highest minimum wage in the country. Tipped employees are also seeing increases in the minimum wage, which is being raised Friday from $4.95 to $5.55. That number will increase to $6.15 in 2022 and $6.75 in 2023. Paid family and medical leave Workers will be guaranteed up to 26 weeks of paid medical and family leave. According to the state website, the leave can be used in order to: Care for a family member with a serious health condition Bond with a child during the first 12 months after the child's birth Bond with a child during the first 12 months after adoption or foster care placement Care for a family member who is or was a member of the Armed Forces, National Guard or Reserves and developed or aggravated a serious health condition in line of duty on active duty while deployed to a foreign country Manage family affairs when a family member is on or has been called to active duty in a foreign county while in the armed forces, including the National Guard or ReservesManage your own serious health condition Workers can combine the types of paid leave they take up to 26 weeks, during which the state will pay employees 80 percent of their earnings up to $850 per week. The benefits are funded by payroll taxes, which have been collected since Oct. 2019.