What happened?

On November 5, 2024, voters rejected Massachusetts’ Question 5 regarding a change in minimum wage for tipped workers.

Quick Summary:

• Massachusetts Question 5 proposed gradually increasing the minimum wage for tipped workers to match the state minimum wage by 2029.

• Its defeat means that the current wage structure remains unchanged, allowing employers to continue paying tipped workers $6.75 per hour plus tips.

What are the details?

• The minimum wage in Massachusetts is $15 an hour, except for jobs that include tips. Under current state law, tipped workers, such as restaurant servers, can be paid $6.75 an hour, provided their wage plus tips total at least $15 an hour.

• Question 5 proposed increasing the base pay for tipped workers over five years. By January 1, 2029, the hourly wage for tipped workers would match the minimum wage for untipped workers. Importantly, this measure would not eliminate tips, allowing customers to continue paying gratuities for service.

• However, the measure was defeated, with 64.44% voting “No” and 35.56% voting “Yes.”

• The defeat of Question 5 means that employers in Massachusetts can maintain their current wage practices for tipped employees, avoiding the potential financial and administrative challenges the measure would have introduced.

Business Considerations

• Employers in Massachusetts should continue to monitor and ensure that tipped employees’ total earnings (wages plus tips) meet or exceed the state minimum wage of $15 per hour to comply with current regulations while maintaining their current wage practices.

Source References

• MA Ballot Question 5 Minimum Wage for Tipped Employees Initiative (2024)

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