House Agrees to Raise Minimum Wage and Reform Unemployment Insurance

State Rep.Tom Sannicandro (D-Ashland) joined his House colleagues this week to pass a bill that reforms the state’s unemployment insurance system (UI) and raises the minimum wage, changes that will make both systems more fair and equitable for all.

Sannicandro is one of three state representatives who serve Framingham.

The legislation addresses minimum wage and Unemployment Insurance in tandem. The bill proposes a new minimum wage of $10.50 an hour and a new tipped wage of $3.75 an hour, both to be phased in over three years.

“Raising the minimum wage is critical to ensuring working families are able to provide for their children,” said Sannicandro. “Over one hundred years ago, Massachusetts was the first state in the county to pass a minimum wage. I am proud that Massachusetts continues to lead by example in ensuring our residents are fairly compensated for their work.”

The minimum wage increase will be implemented in accordance with the below timeline:

·         $9.00 an hour effective July 1, 2014

·         $10.00 an hour effective July 1, 2015

·         $10.50 an hour effective July 1, 2016

The tipped minimum wage increase will be implemented in accordance with the below timeline:

·         $3.00 an hour effective July 1, 2014

·         $3.35 an hour effective July 1, 2015

·         $3.75 an hour effective July 1, 2016

Reforms to unemployment insurance are designed to increase predictability for employers and close existing loopholes. This bill includes a rate freeze for 2014 and a three-year rate freeze which will reflect the new wage base and rate table. Additional changes include:

• Adjusting the ratings table to lower the tax burden on most employers;
• Increasing system accountability for public employees, including municipal and seasonal employees and retirees. This includes closing loopholes that enable school-based municipal employees as well as retirees to receive both pensions and UI benefits.

The legislation also creates the Domestic Worker’s Bill of Rights which enhances and establishes numerous workplace rights and protections for employees including caregivers, nannies and housekeepers. The bill extends the Massachusetts Maternity Leave Act to domestic workers and expands wage and hour law protections. It also guarantees UI coverage.

The bill passed the House 125-24.