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Labor wage updates for new year

With the new year beginning next week, I wanted to highlight some labor changes that will be going into effect on Sunday, January 1, 2023.


Minimum wage will be increasing to $15 an hour, and the tipped minimum wage will be increasing to $6.75 an hour. Conversely, Sunday and holiday premium pay will be eliminated in retail establishments subject to subsection (50) of section 6 of chapter 136.


Additionally, the average weekly wage for the state will be increasing to $1765.34. This increase will affect benefits that are paid through state-run programs such as paid family and medical leave. The average weekly wage increase has already gone into effect for both unemployment insurance and workers’ compensation beginning in October 2022.


As a result, for the Unemployment Insurance program, the maximum weekly benefit for recipients is now $1015. The minimum weekly benefit for Worker’s Compensation is $353.07, while the maximum weekly benefit is $1,765.34.


The maximum benefit for Paid Family and Medical Leave will increase to $1,129.82. For employers, the contribution rate will be reduced to 0.63% for those with 25 or more employees, and it will be reduced to 0.318% for those with 24 or fewer employees. Please keep in mind that the contribution rates are contributions that the employer must make for administrative purposes, but the funding comes from both the employer and the employee. Although the contribution rate is 0.63% for employers with 25 or more employees, only 0.312% is from the employer. The remaining 0.318% is contributed by the employee. Small businesses are only required to make those contributions that are paid by their employees.

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