The Regular Rate Riddle in the Massachusetts “Grand Bargain” Legislation

The new “grand bargain” legislation Governor Charlie Baker signed into law last week gradually phases out the requirement that Massachusetts retailers pay time-and-a-half for work on Sundays or certain holidays. However, this phase-out has a hidden complication: payment of less than time-and-a-half for work on Sunday or holidays is not credited towards overtime for work over 40 hours in a week, and therefore must be included in the regular rate. This means retailers may be required to account for extra premium pay for employees who work on Sundays or holidays.