2 MA Laws That May Impact Your Wallet Go Into Effect Friday

MASSACHUSETTS — In 2018, Gov. Charlie Baker signed what was known as the "grand bargain." Lawmakers agreed to gradually raise the minimum wage and institute a 26-week paid family and medical leave instead of having voters decide those issues.

On Friday, Jan. 1, the minimum wage will tick up another 75 cents and the leave program will go into effect.

The changes will provide some assistance to many struggling residents, but will also challenge some struggling businesses preparing for unemployment insurance costs to sharply increase and health insurance premiums to grow by nearly 8 percent. Baker has filed a bill that would limit the growth of unemployment insurance costs.

Here's a look at what the increased minimum wage and paid family and medical leave could mean for you:

Minimum wage

The march to $15 per hour will continue Friday, when the Massachusetts minimum wage will increase from $12.75 to $13.50. The minimum wage will increase to $14.25 in 2022 and $15 in 2023.

Friday's bump will give Massachusetts the fourth-highest minimum wage in the country.

Tipped employees on Friday will also see an increase in their minimum wage, from $4.95 to $5.55. That number will increase to $6.15 in 2022 and $6.75 in 2023.

Paid family and medical leave

Workers will be guaranteed up to 26 weeks of paid medical and family leave. According to the state website, the leave can be used to:

• Care for a family member with a serious health condition
• Bond with a child during the first 12 months after the child’s birth
• Bond with a child during the first 12 months after adoption or foster care placement
• Care for a family member who is or was a member of the Armed Forces, National Guard or Reserves and developed or aggravated a serious health condition in line of duty on active duty while deployed to a foreign country
• Manage family affairs when a family member is on or has been called to active duty in a foreign county while in the armed forces, including the National Guard or Reserves
• Manage your own serious health condition

Workers can combine the types of paid leave they take up to 26 weeks, during which the state will pay employees 80 percent of their earnings, up to $850 per week.

The benefits are funded by payroll taxes, which have been collected since October 2019.