20 | Massachusetts Wage & Hour Peculiarities, 2025 ed. © 2025 Seyfarth Shaw LLP Some courts have held that the Massachusetts wage laws may apply to employees who work out of state if they have sufficient contacts with Massachusetts or if their employer is based in the Commonwealth.118 2. Coverage Under Federal Minimum Wage Law The FLSA currently sets the federal minimum wage at $7.25 per hour. The rules for determining whether a particular business or employer is subject to the provisions of the FLSA are complex and beyond the scope of this publication.119 However, because Massachusetts has relied heavily on the DOL’s interpretation of the FLSA in interpreting the Massachusetts Minimum Fair Wage Law, it is necessary to understand the minimum wage under federal law. The FLSA requires that employers pay covered employees the federal minimum wage, unless the employees qualify for an exemption from the minimum wage requirement. An “employee” is broadly defined as “any individual employed by an employer.”120 For purposes of the FLSA, “employ” means “to suffer or permit to work.”121 Accordingly, much of the federal analysis regarding whether or not the minimum wage law applies focuses on whether the individual in question is an “employee” as defined by the statute. B. The DLS’s Minimum Wage Regulations The Massachusetts Department of Labor Standards (DLS) has promulgated regulations, 454 C.M.R. § 27.00, et seq., “[t]o clarify practices and policies in the administration and enforcement of the Minimum Fair Wages Act.”122 These regulations are referenced in numerous sections of this publication.123 The DLS’s regulations establish substantive requirements beyond those in the See also Newton v. Comm’r of Dep’t of Youth Servs., 62 Mass. App. Ct. 343, 350 (2004) (finding that M.G.L. ch. 151, the law governing minimum wage and overtime, “does not apply to Commonwealth employees”). 118 See Dow v. Casale, Civ. No. SUCV201001343BLS1, 2011 WL 6379286, *4 (Mass. Super. July 19, 2011) (Massachusetts Wage Act covered employee working from his home in Florida because he maintained significant contacts with the Commonwealth), aff’d, 83 Mass. App. Ct. 751 (2013); Gonyou v. Tri-Wire Eng’g Solutions, Inc., 717 F. Supp. 2d 152, 155 (D. Mass. 2011) (Minimum wage law covered Connecticut-based employee because employer was Massachusetts corporation operating in Massachusetts). 119 29 U.S.C. § 203; 29 C.F.R. §§ 510-794. As in the Massachusetts Minimum Fair Wage Law, the FLSA specifically excludes certain types of work. See 29 U.S.C. §§ 206-207. In addition, employees working outside of the United States and its territories are not covered by the FLSA. 29 C.F.R. § 776.7(a). An employer that has employees working outside the United States should consult legal counsel regarding the employment laws of the countries in which its employees work. 120 29 U.S.C. § 203(e)(1). As interpreted by at least one federal court in Massachusetts, undocumented immigrants may be employees covered under the Act. Lin v. Chinatown Rest. Corp., 771 F. Supp. 2d 185, 190 (D. Mass. 2011) (discovery related to plaintiffs’ immigration status not relevant to employees’ FLSA minimum wage claims). 121 29 U.S.C. § 203(g). 122 454 C.M.R. § 27.01(1). 123 See Section III.B.4 (On-Call Time); Section III.B.3 (Reporting Pay); Section III.B.4 (Sleep Time); Section III.B.5.a (Commuting Time); Section III.B.5.b (Overnight Travel); Section I.E.2.a.1 (Deductions for Lodging); Section I.E.2.a.2 (Deductions for Meals); Section I.E.2.b (Uniforms – Deduction Not Allowed); Section I.E.2.c (Other Statutorily Permissible Deductions); Section IV (Overtime).
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