Since the federal Fair Labor Standards Act (FLSA) applies to virtually all enterprises involved in interstate commerce, most Massachusetts employers are covered by the federal law. Employers that are covered by both state and federal law must comply with the law that sets the higher standard of protection for employees.
Like the federal law, Massachusetts law requires that covered employers pay nonexempt employees overtime in the amount of 11/2 times the employee's regular pay rate for hours worked in excess of 40 in a workweek. Massachusetts does not require that overtime be paid for hours worked in excess of 8 per day (MA Gen. Laws Ch. 151 Sec. 1A).
Calculation. Overtime is computed at 11/2 times the employee's regular pay rate. Sums paid as commissions, advances on expense accounts, bonuses, and other incentive pay based on sales or section production, are not included in computing the regular or overtime rates of pay. The Sunday and holiday work hours of retail employees that must be paid for at 11/2 times the employee's regular pay rate are not counted when determining if an employee has worked more than 40 hours during a workweek, unless a collectively bargained labor agreement provides otherwise. This provision is not to limit a retail employee's right to receive overtime pay for work on Sundays or certain holidays, or to limit the voluntary nature of work on Sundays or certain holidays.