Massachusetts Employer HR Compliance Guide

Priority Compliance Actions

• 1Audit all job postings immediately to include pay ranges as required by the Massachusetts Wage Transparency Act, and establish a process to provide ranges to applicants and employees upon request.
• 2Review independent contractor classifications using the strict Massachusetts ABC test to identify and remediate any misclassification risk, given the treble damages exposure under the Wage Act.
• 3Verify PFML contribution rates and payroll deductions are correctly calculated for 2026, accounting for the updated maximum weekly benefit of $1,230.39 and any changes to the contribution rate.
• 4Ensure earned sick time accrual policies meet state requirements (40 hours paid for employers with 11+ employees at 1 hour per 30 hours worked) and that employee handbooks reflect all Massachusetts leave entitlements.
• 5Review any existing non-compete agreements to confirm compliance with the 2018 Noncompetition Agreement Act, including garden leave pay provisions, and ensure agreements are not used for ineligible worker categories.

Leave Laws

Federal FMLA applies to employers with 50+ employees; Massachusetts PFML provides broader coverage as described above. Massachusetts also has a Earned Sick Time Law requiring employers with 11+ employees to provide up to 40 hours of paid sick leave per year (accruing at 1 hour per 30 hours worked); employers with fewer than 11 employees must provide unpaid sick leave. Additional leave mandates include domestic violence leave, small necessities leave (24 hours/year for school and medical appointments), and a 30-minute unpaid meal break after 6 hours worked.

Wage & Hour

Massachusetts follows federal overtime rules (1.5x for hours over 40/week) but has proposed legislation to expand overtime protections. Final paychecks for terminated employees are due on the next regular payday or within six business days, whichever is earlier; resigning employees are paid on the next regular payday. Pay frequency must be at least biweekly or semi-monthly for most employees. Expense reimbursement is not explicitly mandated by statute but unauthorized deductions from wages are strictly prohibited under the Massachusetts Wage Act, which carries treble damages for violations.

Worker Classification

Massachusetts is an at-will employment state, but the Wage Act and other statutes provide strong worker protections. Massachusetts uses the ABC test for independent contractor classification under M.G.L. c. 149, § 148B—one of the strictest standards in the country—requiring that the worker be free from control, perform work outside the usual course of the company's business, and be customarily engaged in an independently established trade. Non-compete agreements are enforceable under the 2018 Massachusetts Noncompetition Agreement Act but are limited to one year, must provide 'garden leave' pay (at least 50% of base salary) or other mutually agreed consideration, and cannot apply to non-exempt workers, students, or laid-off employees.

Hiring & Onboarding

Massachusetts has a ban-the-box law (CORI reform) prohibiting criminal history questions on initial job applications for most private employers; background checks may be conducted later in the hiring process following specific notice and procedural requirements. There is no statewide salary history ban, though Boston has a local ordinance prohibiting salary history inquiries for city positions. New hire reporting to the Department of Revenue is required within 14 days of hire. Drug testing is permitted but regulated; employers should have a written policy and follow procedural requirements, particularly given the legal status of recreational marijuana—employers may still maintain drug-free workplace policies and are not required to accommodate marijuana use.

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