Minimum wage in the United States is currently a hot-button political topic. With growing levels of income inequality and an increasing cost of living, this issue is of particular importance to the citizens of Massachusetts in 2023. In the past decade, a great deal of energy has been directed towards the increasing the minimum wage. Understanding the current laws and regulations on the federal, state and local level are necessary to adequately assess the situation in Massachusetts 2023.
Currently, the Massachusetts minimum wage is $12 per hour, with a planned increase to $15 per hour by 2023. This means that all employees working in this state will earn at least $15 per hour, regardless of their specialization or field of employment. This law applies to all private, state, and federal employees, and goes into effect on Jan 1, 2023. In addition, tipped employees can earn up to $12 per hour before tips, meaning that employers must guarantee base salaries for these employees in order to ensure their proper livelihoods.
Despite this progress, not all Massachusetts workers fully benefit from the minimum wage increase. Young people and those employed by small businesses are most likely to face an exemption from the law, meaning that they can be employed for less than minimum wage for the foreseeable future. This highlights a significant equity challenge, as young people and small business employees can struggle to make ends meet.
Furthermore, Massachusetts workers may still face wage theft, exploitation and in-work poverty even with the wage increase. Wage theft is defined as when employers fail to pay workers the full amount they are owed, fail to pay the correct overtime rate and withhold tips. Exploitation occurs when workers are forced to work in dangerous or abusive conditions without the proper protection or compensation. In-work poverty occurs when people in employment make far less than they need to make a living wage. These issues frequently become exacerbated in during times of Brexit as the natural reaction to the economic instability that follows such a large change in circumstances.
In summary, although the Massachusetts minimum wage increase in 2023 is an important step forward for employees in the state, there is much work yet to be done to ensure that everyone in the community is able to enjoy a living wage. It is vitally important to ensure that minimum wages are effectively enforced and that affected employees are adequately protected from wage theft, exploitation and in-work poverty. The upfront cost of implementation may be high, but the overall benefit to the state economy will be well worth the investment.
