State News: Mass. Legislature Passed and Gov. Baker Signed “Grand Bargain”
The legislation addressed the many issues that have been raised by the proponents of three ballot questions that had been scheduled to appear on the November general election ballot. The questions sought to: a) increase the minimum wage to $15 per hour by January 1, 2022, b) provide 16 weeks of paid family leave and 26 weeks of paid medical leave to all employees, and c) reduce the state sales tax rate to 5 percent. This legislation will remove all three questions from the ballot. This agreement came about quickly after the State Supreme Court struck down a fourth proposed ballot question that would have increased the state income tax on millionaires to 9 percent.
Sales Tax
- Implements by law a required annual sales tax holiday to be held for two days during one weekend each year during the month of August. The Legislature by joint resolution must designate the dates of the sales tax holiday each year on or before June 15th. If the Legislature fails to do so, the Commissioner of Revenue shall designate the dates no later than July 1st. The rules for the sales tax holiday will remain similar to those implemented during previous sales tax holiday weekends. The section takes effect on July 1, 2019.
- Supporters of the ballot question which sought to reduce the sales tax rate to 5 percent have agreed to withdraw that question from the November general election ballot.
Minimum Wage
- The current $11.00 minimum wage will be increased to $15.00 per hour as of January 1, 2023. The wage will increase to $12.00 on January 1, 2019 and will increase by 75 cents on January 1st of the following 4 years until it reaches the $15.00 benchmark. The ballot question would have increased the minimum wage by $1.00 each year with the $15.00 per hour wage implemented one year earlier in 2022. The indexing of the minimum wage to the CPI which was included in the ballot question was not included in this legislation.
Sunday and Holiday Time and a Half Wages
- Sunday and Holiday Time an• The current time and a half formula used for persons who work on Sunday and holidays will be gradually reduced until it is eliminated as of January 1, 2023. The premium will be reduced to 1 and 4/10ths on January 1, 2019 and will be reduced by an additional 10th of a percent for the following 4 years until it is eliminated on January 1, 2023.
Paid Family and Medical Leave
- Creates a Dept. of Family and Medical Leave to implement this law. The contributions from this section will be contributed to The Family and Employment Security Trust Fund. The Dept. shall disperse all benefit payments from this fund.
- Provides up to 12 weeks of paid family leave for the purpose of (a) bonding with a child of less than 12 months of age, (b) deal with the exigency of the deployment of a family service member, and (c) care for a family member. The proposed ballot question would have provided