For the year 2022 the State and Federal Governments have announced the following changes affecting employers and employees:
Minimum Wage: Massachusetts minimum wage was increased from $13.50 per hour to $14.25 per hour. This increase continues the changes in the minimum wage in Massachusetts with the ultimate goal of provided a $15.00 an hour minimum wage in 2023. Also, the tip wage has been increased from a minimum of $5.55 per hour to $6.15 per hour.
The Federal minimum wage continues to be $7.25 per hour; however, President Biden has recommended to Congress it be increased to $15.00 per hour.
Retail Sunday Rate: In accordance with the Grand Bargain dealing with the increase in the minimum wage, the Commonwealth has further reduced the retail Sunday and certain holiday premium rates to 1.1 times the regular rate of pay for employees working on those days. The rate will be reduced to 1.0 in 2023.
Internal Revenue Service Standard Mileage Rate: The IRS increased the standard mileage rate from $.56 per mile in 2021 to $58.5 per mile for 2022.
Social Security Maximum Taxable Base: The Social Security Administration has increased the maximum taxable base to $147,000 for 2022.
401(k) or 403(b) Contribution Limits for 2022: An employee may contribute up to $20,500 per year, an increase of $1,000 over the 2021 amount. Employees 50 or older may also contribute an additional $6,500 per year or a maximum of $27,000.
OSHA Maximum Penalties: OSHA increased the maximum penalty for serious and other than serious violations from $13,653 to $14,502 per violation. The maximum penalty for willful or repeated violations increased from $136,532 to $145,027 per violation.
If you have any questions or need additional guidance, reach out to our Labor & Employment team.