Massachusetts Business CostsTripled!

Get this, MA just rolled out a law on April 14th directed at wage and hour violators and its packing a hefty price with no room for negotiations. Not even the courts can help, as the punishment for violations is now mandatory. Fines for wage and hour violations have now tripled.

How much more can an employer in MA handle? The state of MA rolled out this new law in response to a 1993 statute overturned by the state Supreme Judicial Court three years ago. As employers braced themselves for a change in legislation, they could not have anticipated such a restrictive law with no consideration for employers who made an honest mistake. The announcement left many employers nervous and scrambling for answers.

Adding insult to injury, this new law now sits on top of a long list of existing complex laws, shifting the role of the employer to one of an investigator or lawyer. Taking a quick run at the list of employment laws in MA, one can easily become overwhelmed by the sheer number, complexity and level of detail of each.

The new statute disregards an employer's good faith to correct the error and has adopted a zero tolerance policy for wage and hour violators. Some anticipate the number of wage and hour claims will skyrocket as well as the law firms handling these cases, as Massachusetts become a target for new lawsuits. This law can be financially devastating to an employer and there is no time like the present to get your house in order.

With no room for error, one can unintentionally be in violation without advanced warning. Even if the employer catches it and makes the correction, the law is unforgiving as the new triple damages law is mandatory. Tighten up any loose ends by reexamining your existing policies and practices and close all gaps or loopholes around your hiring practices. Take a look at your existing worker population to insure they are properly classified. Lastly, when in doubt contact your legal council and know your rights as employer.