Premium pay for working Sundays and on some legal holidays is scheduled to end at the start of 2023 under a deal state lawmakers struck in 2018 that also included a minimum wage increase and the creation of a state-funded paid family and medical leave program.
The so-called “Grand Bargain” bill that Gov. Charlie Baker signed into law in 2018 incrementally decreased the amount businesses were required to pay employees for working on Sundays and legal holidays, with an eventual phase-out scheduled for Jan. 1, 2023.
Premium pay currently applies to New Year’s Day, after 12 p.m. on Columbus Day, and after 1 p.m. on Veterans Day. Premium pay is only required on Memorial Day, Juneteenth Independence Day, Independence Day, and Labor Day if a retailer employs more than seven workers, including the owner.
Through December 31, 2018 retailers that employed more than seven workers were required to pay 1.5 times the regular rate for employees who worked on Sundays or legal holidays. For Sundays, lawmakers decreased that by .1 each year until the rate reached 1.1 times the regular rate starting Jan. 1, 2022.
Holiday premium pay for Memorial Day, Juneteenth Independence Day, Independence Day, and Labor Day decreased at the same rate. But premium pay for New Year’s Day, Columbus Day, and Veterans Day decreased at a slower rate.
The “Grand Bargain” also initiated the sales tax holiday in August, where the state’s 6.25% sales tax on most purchases is suspended for a weekend. And...
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