Page 46 - BusinessWest November 28, 2022

loss based on personal initiative or investment. The Biden administration’s proposal would con-
sider those two factors, but include four others for
a total of six: investments by the worker and the employer, the degree of permanence of the working relationship, the extent to which the work performed is an integral part of the employer’s business, and the degree of skill and initiative exhibited by the worker.
These six factors guide the analysis of whether the “economic realities of the working relation- ship” show a worker to be either dependent on the employer for work or in business for themselves based on a “totality of the circumstances.”
Under the proposed modification, no one factor or set of factors is presumed to carry more weight, and the DOL may also consider additional factors beyond those six, if they indicate the worker may be in business for themselves.
Increases in the Minimum Wage and Service Rate
Massachusetts employees making minimum wage are going to see a pay increase of 75 cents per hour, effective Jan. 1, 2023, bringing their pay to $15 per hour. This does not include agricultural workers, whose pay remains at $8 per hour. Workers under the service rate (those who provide services to cus- tomers and make more than $20 a month in tips) will see an increase of 60 cents per hour, beginning in 2023, as the service rate is now $6.75.
Changes to Massachusetts Paid Family and Medical Leave
In 2022, the maximum weekly benefit for Massa- chusetts Paid Family and Medical Leave is $1,084.31;
46 NOVEMBER 28, 2022
however, in 2023, it will increase to $1,129.82. Also beginning in 2023, the contribution rate for employ- ers with 25 or more covered individuals will decrease from 0.68% of eligible wages down to 0.63% of eligi- ble wages. Employers should ensure that their wage
include “braids, locks, twists, Bantu knots, hair cov- erings, and other formations.” Employers who vio- late the CROWN Act will be liable for compensatory damages, as well as possible punitive damages and attorneys’ fees.
“Operating costs will undoubtedly increase if they are required to reclassify their independent contractors as employees, due to the tax liabilities and minimum-wage, labor, safety, and other legal requirements that apply to employees.
”
deductions and contributions are adjusted accord- ingly. This is the second straight year the contribu- tion rate has decreased.
Employees are still not permitted to use their accrued sick or vacation leave to ‘top off’ their week- ly benefit. While there may have been rumors that Massachusetts was planning to change this in 2023, no such change appears forthcoming.
The CROWN Act
In 2022, Massachusetts enacted the Creat-
ing a Respectful and Open World for Natural Hair (CROWN)Act,makingitthe18thstatetopasssimi- lar legislation (see related story on page XX). This law is aimed at quashing discrimination on the basis of “traits historically associated with race, including, but not limited to, hair texture, hair type, hair length, and protective hairstyles.”
The law further defines “protective hairstyles” to
BusinessWest_4_5w x 5_8h.indd 1 LAW
The CROWN ACT was inspired by two teenage twin sisters’ alleged violation of a school hair and makeup policy that prohibited extensions.
Bottom Line
Given the changes that have taken place — and the changes to come — it is a good idea to have your business schedule a check-in with an employment- law firm as we approach 2023. u
Justin Goldberg is an attorney who specializes in labor and employment-law matters at the Royal LawFirmLLP,awoman-owned,women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.
The Royal Law Firm
is a Woman-Owned Corporate Law Firm Servicing New England
413.586.2288
www.TheRoyalLawFirm.com
A Certified Women’s Business Enterprise
CERTIFIED WITH THE FOLLOWING ORGANIZATIONS:
The Massachusetts Supplier Diversity Office
The United States Small Business Administration’s Federal Contracting Program The National Association of Minority and Women Owned Law Firms
The Women’s Business Enterprise National Council
At Melanson, we are committed to ensuring that our clients receive the highest level of professional accounting services as well as the personal touch of a trusted advisor.
Contact us today to find out how we can partner with you!
A Partner in Your Journey,
A Partner in Your Success.
Audit & Assurance • Fraud & Forensic • Tax Compliance & Strength • Accounting Services • Business Valuations • Management Advisory Services
Merrimack, NH | Andover, MA | Greenfield, MA | Ellsworth, ME 800.282.2440 | melansoncpas.com
12/14/20
BusinessWest
2:29 PM