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With the passage of the “Grand Bargain” the Commonwealth will experience changes to the minimum wage and Sunday/ holiday premium pay, which the Department of Labor Standards oversees. The first increase to $12 per hour will take place on January 1, 2019. The rate will then increase incrementally to $15 per hour over the next 4 years. The tipped rate will also increase on January 1, 2019 to $4.35 per hour and like the minimum wage, will increase incrementally to $6.75 per hour over the next 4 years. In addition, premium pay for Sunday work (now at 1.5 times the regular hourly rate) will drop to 1.4 times hourly rate. As the minimum wage increases, premium pay for Sunday work will gradually phase out and eventually end January 1, 2023.
The major news for EOLWD from the “Grand Bargain” is the establishment of the Department of Family and Medical Leave within our secretariat. Many members of our team are now busy putting together a plan for our new department. The new department will begin collections on July 1, 2019. Beginning in 2021 employees in Massachusetts will be able to receive up to 12 weeks of paid leave to care for a family member or bond with a new or adopted child and up to 20 weeks of paid leave to address an employee’s personal medical illness. More to come on these efforts in future newsletters.
With help from our partners at the Executive Office of Housing and Economic Development, the Legislature passed the Governor’s Economic Development bill, which included many important initiatives for EOLWD. One such initiative is a tax credit for employers who employ apprentices in the manufacturing, IT, and healthcare industries. These industries were identified by our regional planning process which aims to address the skills gap by bringing together regional teams of educators, workforce and economic development professionals.
Another exciting part of the Economic Development bill is the inclusion of an annual funding source for the Workforce Competiveness Trust Fund (WCTF). The WCTF invests in demand-driven programs designed by industry sector partnerships that train and help to place unemployed and underemployed workers. Moving forward these funds will be used to support employment and training programs designed by regional partnerships that consist of businesses with critical vacancies, education and training providers, and community based organizations.
We look forward to the next legislative session and the chance to move forward new initiatives that support job growth, the workforce, and the Commonwealth’s economy as a whole.