Fiola and colleagues pass legislation to raise minimum wage

April 4, 2014

House Passes Legislation to Raise Minimum Wage, Enact Substantial Reforms to Unemployment Insurance, Enhance Protections for Domestic Workers

Highlights commitment to addressing inequality, supporting businesses and creating jobs

(BOSTON) – Representative Carole Fiola joined her colleagues in the Massachusetts House of Representatives to pass a bill that reforms the state’s unemployment insurance system (UI) and raises the minimum wage, changes that will make both systems more sustainable, fair and predictable.

To balance the needs of businesses and individuals, the legislation addresses minimum wage and UI in tandem. The bill proposes a new minimum wage of $10.50 an hour and a new tipped wage of $3.75 an hour, both to be phased in over three years. In the interest of providing employers with stability and accountability, neither wage will be indexed to economic factors.

“The minimum wage increase the House passed will help to bring more well-deserved money to hard-working people in the Commonwealth. In turn, this bill has further economic development effects by creating a more robust economy in Massachusetts and eventually creating more jobs,” said Representative Fiola. “Now is the time for the Legislature to bring the people of Massachusetts a reasonable wage that reflects what they should earn, and I believe we have acted accordingly by pairing minimum wage with UI reform. I’m proud to be a part of making a change for working families, and I thank my colleagues for all their work on this legislation.”

The minimum wage increase will be implemented in accordance with the below timeline:

  • $9.00 an hour effective July 1, 2014
  • $10.00 an hour effective July 1, 2015
  • $10.50 an hour effective July 1, 2016

The tipped minimum wage increase will be implemented in accordance with the below timeline:

  • $3.00 an hour effective July 1, 2014
  • $3.35 an hour effective July 1, 2015
  • $3.75 an hour effective July 1, 2016

Reforms to unemployment insurance are designed to increase predictability for employers and close existing loopholes. This bill includes a rate freeze for 2014 and a three-year rate freeze which will reflect the new wage base and rate table. Additional changes include:

  • Adjusting the ratings table to lower the tax burden on most employers;
  • Increasing system accountability for public employees, including municipal and seasonal employees and retirees. This includes closing loopholes that enable school-based municipal employees as well as retirees to receive both pensions and UI benefits.

The legislation also creates the Domestic Worker’s Bill of Rights which enhances and establishes numerous workplace rights and protections for employees including caregivers, nannies and housekeepers. The bill extends the Massachusetts Maternity Leave Act to domestic workers and expands wage and hour law protections. It also guarantees UI coverage.

The bill passed the House 125-24.

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