Pay Increase, New Tax: 2023 MA Laws Going Into Effect

BOSTON, MA — With the start of 2023, Massachusetts will see several law changes, most notably increased benefits for those covered by the Massachusetts Paid Family and Medical Leave law (PFML) and a minimum wage increase.

Here’s a look at some new state laws that will go into effect in 2023.

Paid Family, Medical Leave

Maximum weekly benefits under the PFML are increasing from $1,084.31 to $1,129.82 per week. Employer contribution rates will also be lowered — employers with 25 or more covered individuals will now only need to pay 0.63 percent of eligible employee wages, and employers with fewer than 25 covered individuals will pay 0.318 percent.

Minimum Wage

The minimum wage in Massachusetts will increase from $14.25 an hour to $15 per hour. The 75-cent increase is the final result of legislation passed in 2018 that gradually increased the minimum wage to $15. Tipped workers’ wages will also increase from $6.15 to $6.75 per hour.

Millionaire's Tax

This is the result of Question 1 from the November ballot. Starting Jan. 1, anyone who earns more than $1 million per year will pay an additional 4 percent income tax.

Sunday Premium Pay

Under state "blue laws," workers have been entitled to premium pay on Sundays — but that ends in 2023. The Sunday premium pay rate has been ratcheted down gradually since 2018, reaching 1.1X the pay rate in 2022. It'll go to zero in 2023 for employers with more than seven employees.

Here are some regulations to keep in mind for later in 2023:

Open Meeting Law

On March 31, a regulation will expire pertaining to remote government meetings. After that date, the Open Meeting Law will no longer permit public bodies — like city councils, select boards and many others — to form a quorum with members who are not physically present. Unless the provision is extended, that means members of public bodies won't be able to participate in meetings remotely.

Chapter 62F Refunds

These refunds went out to many Massachusetts taxpayers in fall and early winter 2022 based on 2021 tax returns. You have until Sept. 15, 2023, to file your 2021 return to still be eligible for a Chapter 62F refund.