This training presentation covers wage and hour laws including the Massachusetts Wage Act, Fair Labor Standards Act, minimum wage rates, deductions from pay, hours worked, meal and rest breaks, on-call time, travel time, overtime pay, and exemptions. It discusses requirements for paying minimum wage, overtime, keeping accurate records, and classifications as exempt vs. non-exempt employees. Common violations and ways to ensure compliance are also reviewed.

1. Mass.
Wage Act &
FLSA
Training
DATE: JANUARY 30, 2020
PRESENTER:
KEVIN M. KINNE

2. Minimum
Wage
Covered, non-exempt employees must be paid at least
the higher of state/federal minimum wage for all hours
worked

3. Massachusetts Minimum Wage
STANDARD MINIMUM WAGE
Massachusetts minimum wage is $12.75/hour as of
January 1, 2020.
Note: Minimum wage will go up in steps to reach $15
per hour in January 2023.
TIPPED EMPLOYEE MINIMUM WAGE
Tipped employees minimum wage is $4.95 as of
January 1, 2020. This rate will go up in steps to reach
$6.75 per hour in January 2023.
Note: The minimum wage for tipped employees who
make more than $20 a month in tips is $4.95 an hour.
However, for employers to pay these employees this
different minimum wage they must inform the
employee of this law and the employee must receive
at least the $12.75 minimum wage when actual tips
and wages are combined.

4. Deductions From Pay
Deductions from pay are illegal if:
• Items are primarily for the benefit or convenience of employer, and
• Deduction reduces employee earnings below required minimum wage
Examples of illegal deductions: deductions for tools, damages to property, cash register shortages

5. Hours Worked
An employee must be paid for all of the time
considered to be “hours worked” under the FLSA.
This may include time spent engaged to wait, on-
call, in training, traveling, reporting pay and sleep
time.
Work not requested but “suffered or permitted”
is work time.

6. Suffer or
Permitted
Even if an employee voluntarily
continues working at the end of a
shift, the College must count it as
working time if it knows or has
reason to believe that the
employee is continuing to work.
Working time is not limited to the
hours spent in active, productive
labor – for example
donning/doffing.

7. Waiting Time
Hours worked
Employee unable to
use “waiting time”
effectively for own
purposes
“Waiting time”
controlled by
employer
NOT hours worked
Employee completely
relieved from duty
Break-time long enough
for employee to use for
own purposes

8. On-Call Time
If the College requires an employee to be
on call at or very near the work site to
attend to emergencies, the employee must
be paid as if s/he were doing any other
work for the College.
If an employee is not required to remain
on or near the College’s premises, but is
merely required to leave word where s/he
may be reached, s/he is not working and
need not be paid (unless s/he is called into
work).

9. On-Call Time
Hours worked
Employee must stay on
employer premises
Or, must be so close time
cannot be used effectively
for own purposes
NOT hours worked
Employee must provide
contact information
Can use time effectively
for own purposes

10. Rest and
Meal Breaks
SHORT REST BREAKS (20 MIN OR
LESS) ARE COMPENSABLE
BONA FIDE MEAL PERIODS
(TYPICALLY 30 MINUTES OR MORE)
NEED NOT BE PAID AS HOURS
WORKED
WORKER MUST BE COMPLETELY
RELIEVED OF DUTY FOR MEAL
PERIOD NOT TO BE COMPENSABLE
TIME.

11. Massachusetts Meal Break Law
Massachusetts law mandates that all employees (including exempt employees) receive an
unpaid, thirty-minute meal break after six hours of work.
The meal break must be the employee’s free time, meaning the employee must be relieved of all
duties and free to leave the workplace during that time. Otherwise, the time is compensable.
The Attorney General has enforcement authority for the meal break statute. Any employer that
violates the provisions of the statute may be subject to fines ranging between $300.00 and
$600.00 for each violation.

12. Coffee
Breaks and
Rest Breaks

13. Meal Break Waivers
Voluntary waivers of meal breaks are permissible but employees must be paid for work.
Employer cannot waive the meal break for the employee and cannot coerce employee into
waiving.
Has to be clear that the employee initiated the request to waive the meal break and that the
request is voluntary and for the convenience of the employee.

14. Meal Break Risks
Be careful to avoid automatically deducting 30 minutes from an employee’s time card under the
assumption that the employee will take the uncompensated meal break.
FLSA requires that employees be compensated for all “hours worked,” so if an employee is
interrupted for work purposes during a lunch break that time needs to be compensated.
Tending to emergencies.
Work-related calls, emails or texts during lunch break.
If an employee spends time during an uncompensated meal break performing work related tasks, the
employer must compensate the employee for that break time.
Instruct employees not to check or respond to work emails, calls, or texts during their breaks.

15. Training
Time
Time spent in meetings, lectures or
training is considered hours worked and
must be paid, unless:
1. Attendance outside regular work hours
2. Attendance voluntary
3. Training not job related, and
4. Employee does not perform any
productive work

16. Reporting Pay
Under Massachusetts law, if an employee is scheduled to work a shift of three or more hours
and reports for duty, he or she is entitled to at least three hours of pay even if the employee is
not assigned any work.
For the hours actually worked, the employee must be paid his or her regular rate. Employers
that pay wages that exceed the minimum wage may opt to pay only the minimum wage for any
hours not actually worked.

17. Travel
Time
Ordinary home to work travel is not
compensable work time
Travel between job sites during
normal work day is work time and
thus compensable hours worked

18. Sleeping Time
Duty: Shifts of less than 24 hours:
Employee on duty for less than 24 hours is
considered working even if allowed to sleep,
engage personal pursuits; no sleep time
deduction permitted
Duty: Shifts of 24 hours or more:
Parties can agree to exclude bona fide
sleep periods, up to 8 hours, and only if certain
conditions are met

19. Sleeping Time – 24+ Hour Shifts
For workers who do not permanently or for extended periods of time reside on the employer’s
premises, the employer and employee can exclude from hours worked up to 8 hours spent sleeping if:
The employer furnishes adequate sleeping facilities; and
The employee can usually enjoy 5 consecutive hours of uninterrupted sleep; and
The employer and employee have an express or implied agreement to exclude sleep time

20. Hours Worked Summary and Common
Violations
Suffered or Permitted: working “off the clock”
Waiting Time: engaged to wait
On-Call Time: not free from duty or employer control
Meal and Rest Periods: not free from duty
Training Time: unpaid training during work time
Travel Time: unpaid travel between job sites
Sleep Time: deduct for sleep in less than 24-hour shift

21. Overtime
Covered, non-exempt employees must receive one and one-
half times their regular rate of pay for all hours worked over
forty in a workweek
All time that is hours worked must be counted when
determining overtime hours worked.

22. Exempt v. Non-Exempt
Important to understand the basics
What do the terms mean?
Why are they important?
Salaried v. Hourly

23. Case Study –
Tampa Bay Rays
Hourly employee
Making minimum wage
Lots of overtime
New Job
What to do???

24. Three-Part Exemption Test
To qualify for exemption, white collar employees generally must satisfy three tests:
Salary Basis ‐ Paid a predetermined and fixed salary each week that is not adjusted because of
variations in the quantity or quality of work performed;
Salary Level ‐ Paid at least a minimum salary level set by regulation (employees can be paid
As of January 1, 2020 the new rule is that exempt salaried employees must be paid at least $684
per week, or $35,568 annually; and
Primary Duty ‐ Job primarily involves performing executive, administrative, or professional
depending on the nature of the exemption.

25. Workweek
Compliance determined by
workweek
Each workweek stands alone
Workweek is 7 consecutive
24-hour periods (168 hours)

26. Regular Rate
Determined by dividing total earnings in workweek by total number of hours worked in
workweek - Total Compensation ÷ Total Hours Worked = RR
Regular Rate may not be less than the applicable minimum wage
Total earnings include commissions, certain bonuses, and cost of room, board, and other facilities
provided primarily for the employee’s benefit

27. Determining Overtime Pay Rate
Regular Rate and Premium Pay for OT Hours
STEP 1: Total compensation paid in a workweek (minus statutory exclusions)
divided by total hours worked in the workweek
Total Compensation ÷ Total Hours = RR
STEP 2: RR x .5 = Half-time Premium Pay per OT Hour
STEP 3: (Half-time) Premium Pay Rate x Overtime Hours in the Workweek =
Overtime Compensation Due

28. Improper Deductions
Effect of Improper Deductions
Improper deductions from salary may result in loss of exemption
• During period in which improper deductions made
• For employees in same job classification
• For employees working for manager making improper deductions
Isolated, or inadvertent improper deductions will not result in loss of exempt status if
employee reimbursed

29. Improper Deductions
Safe Harbor
Exemption will not be lost if employer
• Has clearly communicated policy prohibiting improper deductions including
complaint mechanism
• Reimburses employees for improper deductions
• Makes good faith commitment to comply in future
If employer willfully violates policy by continuing improper deductions after receiving
employee complaints, it cannot claim the exemption for the affected employees

30. Common Overtime Violations
• Regular Rate: Failure to include production bonuses, shift differentials, piece rates in
determining the regular rate for calculating OT compensation due
• Combined hours, rates for dual jobs: Failure to combine all hours in dual jobs or multiple
of single employer
• Tipped Employees: Failure to calculate correct cash OT payment

31. Common Overtime Violations
• “White Collar” Exemptions: Misapplication of exemption, or improper assumption that all
salaried employees are exempt
• Deductions: Improper deductions in OT weeks
• Misclassification: Improper treatment of employee as independent contractor
• Hours worked: Failure to record, pay for all hours worked
• State Law: Confusion between state and federal law

32. Massachusetts Pay Equity Law
New law requires employers to pay women and men the same wages if they do comparable
work.
The law defines “comparable work” to “solely mean work that is substantially similar in that it
requires substantially similar skill, effort and responsibility and is performed under similar
working conditions.”
Job titles and job descriptions alone do not determine comparability.

33. Massachusetts Pay Equity Law
Three additional requirements:
(i) employers may not inquire about an applicant’s salary or benefits history before extending an
employment offer that contains compensation terms;
(ii) employers may not prohibit employees from talking to their co-workers about wages or
benefits; and
(iii) employers must pay employees based on competitive market rates and not salary history.

34. Pay Equity Law – Case Study
FIRE MARSHAL DIRECTOR OF EMERGENCY MGT.

35. Exceptions to Equal Pay Requirement
1. A bona fide seniority system;
2. A bona fide merit system;
3. A bona fide system that measures productivity;
4. Geographic location;
5. Education, training or experience; and
6. Travel.

36. Pay Equity Act Compliance
Steps to take for compliance:
1. Perform a self-audit to identify any pay disparity.
2. Review positions that are similar in title or function and which involve “comparable work.”
3. Disparity based on merit or productivity should be validated using reliable metrics and the
findings should be carefully documented.
4. Take corrective actions – increase not decrease.
5. Train interviewers about illegal questions.

38. Independent Contractor - Test
1. The individual must be “free from control and direction in connection with the performance
of the service, both under the contract for the service and in fact.”
2. The service being performed must be “outside the usual course of the business of the
employer.”
3. The individual must be “customarily engaged in an independently established trade,
occupation, profession or business of the same nature as that involved in the service
performed.”

39. Risks of IC Misclassification
1. Wage Act requirement regarding time of pay
2. Minimum wage
3. Overtime wage
4. True and accurate records of employees
5. Withholding taxes on employee wage
6. Worker’s compensation provisions punishing knowing misclassification – B&B Case

40. IC Action Items
1. Evaluate all IC relationships carefully in terms of actual day to day work relationship to
determine whether there may be a misclassification.
2. Work only with incorporated companies with multiple employees and multiple customers.
3. Hire ICs through another company/employer.

41. Personnel
Files

42. Personnel Records Law
Requires the College to maintain certain information or documents within an employee’s “personnel
record.”
Personnel record” is defined broadly to include any record that identifies an employee “to the extent
that the record is used or has been used,or may affect or be used relative to that employee’s
qualifications for employment, promotion, transfer, additional compensation or disciplinary action.”
The College has a duty to notify an employee within ten days of placing negative information into the
employee’s personnel record if the “information is, has been used or may be used, to negatively
affect the employee’s qualification for employment, promotion, transfer, additional compensation or
the possibility that the employee will be subject to disciplinary action.”

43. Personnel Records Law
The College and an employee may agree to remove information from a personnel record “for any reason.”
If there is a disagreement as to whether information should be included in the record, “the employee may submit
a written statement explaining the employee’s position,” which will become part of that employee’s personnel
record and must be included when the record is transmitted to a third party.
The College must provide an employee or former employee with an opportunity to review his or her personnel
record during normal business hours at the employee’s place of business within five business days of the
employee’s written request.
The law also requires the College to provide an employee or former employee with a copy of his or her personnel
record within five business days of the employee’s written request.
The College may limit the frequency of employee requests to review personnel records to twice per year.

44. Managing Absenteeism

45. Causes of Absenteeism
• Poor working conditions
• Attitude or motivational problems
• Work environment
• Poor health
• Accidents
• Lack of job satisfaction
• Lack of clear standards/policies
• Outside interests
• Transportation problems
• Underlying medical condition
• Management style
• Problems with supervisor
• Problems with co ‐workers
• Family, personal or domestic problems
• Response to refusal for time off for social,
domestic or family crisis
• Stress
• Ergonomic issues

46. Costs of Absenteeism
The cost of absenteeism is not only limited to the employee’s salary for the day the employee is not working ‐ it is
actually three times that day’s salary taking into account hidden costs such as a temporary replacement for the
absent employee because of:
Decreased Productivity
Extra workload
Support, train & orientation of replacement staff
Increased supervision
Administrative Costs
Securing replacements
Re‐assign remaining staff

47. Steps to Address Absenteeism
Step 1:
Collect accurate data on (a) rate & forms of absenteeism, (b) reasons for absences, (c) factors
affecting job satisfaction, and (d) determine stressors.
Step 2:
Supervisor discussion with employees upon return to work about: (a) who completed work
assignments during absences, and (b) impact of the absence.
Step 3:
Distinguish AWOL, genuine illness, disability and ‘voluntary’ absenteeism

48. Addressing Absenteeism
• Early detection and intervention by supervisors
• Good communication and problem-solving skills
• Creating a healthy working environment
• With excessive absences – disciplinary action (including termination)
• Zero tolerance for abusers

49. Communication/Documentation
Conversations about attendance don’t have to be confrontational or unpleasant.
They can improve productivity and morale, enhance your team’s output and decrease the
College’s legal risk.
By giving your employees a chance to correct attendance problems and ultimately succeed,
you’re doing the right thing for your employee, your team and the College.

50. Communication/Documentation
Careful attendance tracking can help you document excused and unexcused absences, as well as
spot negative patterns early.
Should a dispute occur, up-to-date attendance records also serve as critical evidence.
With accurate records of the dates missed, reasons for each absence and notes about your
efforts to correct the problem, you have a firmer base to stand on regarding any disciplinary
action.

51. Communication/Documentation
How you address attendance issues is as important as how you identify them.
If you have a solid, respectful relationship with your staff, your employees will usually respond
favorably.
For this reason, start with positive reinforcement and a verbal warning.

52. Counseling Employees
An employee’s actions do not always warrant the use of formal disciplinary actions.
In these cases, informal measures such as informal verbal counseling should be used.
Informal verbal counseling should be done in private.
Before conducting the counseling session, the supervisor or manager should prepare a list of
issues that will be covered in the counseling session.

53. Verbal Counseling
The purpose of a verbal counseling session is to let an employee know you’re concerned, how
you expect the problem to be resolved and what the consequences are if the problem
continues.
Always give the employee a chance to respond and explain his or her situation.
An individual may be undergoing certain medical treatments, taking care of an elderly parent or
participating in military training, which are all legally protected absences.
Or perhaps the employee is dealing with a difficult personal situation and is struggling with how
to handle it.

54. Tips for informal verbal counseling
Do not disparage the employee.
Attempt to maintain rapport for the sake of the long-
term working relationship.

55. Next Steps
If you notice a marked improvement, praise the employee and let him or her know you appreciate the effort. However, if you’ve tried
everything and the employee continues to abuse the time-off rules, prepare a written warning that includes:
Specific facts (not opinions) about the situation
The rule or policy violated
Objectives and expectations for improvement
Disciplinary action being taken
Consequences for not correcting the problem
Signatures and dates
A written warning that doesn’t result in any positive change over a certain period (typically a month or two) may be followed by a
suspension and, finally, termination.

56. Staying Positive
Which employees usually stand out more – those who do their job or those who don’t?
If someone doesn’t show up to do their job, it puts a strain on the entire team.
But what about the employees who do show up on time every day and keep your department
running smoothly in the background?

57. Staying Positive
Employees who don’t feel recognized at work are twice as likely to say they intend to quit in the next year, while
employees who are recognized are more loyal and engaged.
In today’s growing millennial workforce, up to 76 percent of millennials say they would leave a job if they didn’t
feel appreciated.
Only one in three workers in the U.S. “strongly agree” that they received recognition or praise for doing good
work in the past seven days.
Recognizing employees for good attendance and performance can be one of the lowest cost, yet highest impact
strategies for your success as a supervisor.
While you may want to focus on weeding out the employees with poor performance, you don’t want to lose the
great employees you have in the process.
Find a way to call out and reward good attendance on a regular basis.

58. Mass.
Wage Act &
FLSA
Training
DATE: JANUARY 30, 2020
PRESENTER:
KEVIN M. KINNE