House Passes Workforce Reform Bill

(BOSTON) – Representative Kenneth Gordon (D-Bedford) joined with Chairman Tom Conroy (D-Wayland) and others to lead the effort of the Massachusetts House of Representatives to pass a bill that raising the minimum wage while reforming the state’s unemployment insurance system (UI) in a way that does not cut eligibility or benefits for any recipient. 

The bill proposes an increase in the minimum wage from $8 to $10.50 an hour and a new tipped wage of $3.75 an hour, both to be phased in over three years.  The bill also provides a statutory framework for the relationship between a domestic worker and an employer, so that people engaged in home-based care of children, the elderly, the disabled and others will have statutory rights to such things as rest periods and other necessities.

Representative Gordon was pleased with the outcome. 

“This bill has been a long time in coming,” he said.  “It represents meaningful advancement for the rights of working people, including an increase in the minimum wage but going well beyond that increase.  It comes with protections for those receiving unemployment benefits and incentives for recipients to receive the training they need to become re-employed” 

Rep. Gordon introduced an amendment that was included in the bill that levels the playing field for minimum wage workers and those entitled to overtime, by allowing those who are not paid their wages the same access to enforcement as those receiving higher pay.   “I was able to work closely with house leadership to during the amendment process. I was delighted to have assisted my colleagues in seeing another six important amendments included in the bill.”

“With this vote to increase the minimum wage and to reform our unemployment insurance system, the House has strengthened two important aspects of our state’s social and economic fabric,” House Speaker Robert A. DeLeo (D-Winthrop) said. “By pairing an increase in minimum wage with UI reform we will improve conditions for working families and provide a vehicle for economic growth. I thank Chairman Conroy, Chairman Dempsey and my colleagues in the House for their intelligent and well-considered action on this bill.”

“The House has approved an increase to the minimum wage and created essential protections for domestic workers while making targeted adjustments to our unemployment insurance system. These policies will ensure that both employers and employees are part of a system that is efficient, effective, and fair,” said Representative Brian S. Dempsey (D – Haverhill), Chairman of the House Committee on Ways and Means. “Our goal, as always, is to provide all members of the Massachusetts workforce with equal access to the opportunities that encourage our Commonwealth’s diverse and innovative economy.”

“The minimum wage increase the House passed today will not only put real money into the pockets of working families, but will create more jobs and grow the economy,” said Rep. Conroy, Chair of the Joint Committee on Labor & Workforce Development. “No one who works full time should be living in poverty, and today’s vote will help bring an end to this situation.  It’s also a significant step toward addressing the rising income inequality in our state. I'm grateful for Speaker DeLeo's leadership in bringing together members of the business and labor communities to craft this bill, and I'm proud that we are on the verge of making a real, tangible difference for low-wage individuals and working families throughout the Commonwealth.”

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.