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U.S. Department of Labor briefs Nantucket licensees: pay rules for tipped workers, overtime and child labor explained
Summary
The U.S. Department of Labor’s Wage and Hour Division told licensees how federal and state wage laws interact: Massachusetts minimum wage applies when higher, federal overtime may apply to hospitality workers, tipped‑employee accounting is daily, and strict rules apply to child labor and use of temp agencies.
A Wage and Hour Division representative from the U.S. Department of Labor told Nantucket licensees the agency enforces federal minimum wage, overtime, recordkeeping and child‑labor rules and that employers must comply with the higher of state or federal standards.
Tom Carroll said federal minimum wage is $7.25, Massachusetts minimum wage is $15, and employers must follow the higher rate. He explained that under federal law hospitality overtime exemptions are limited and many restaurant workers are entitled to overtime: “Under federal law, they're not exempt, and you have to pay overtime,” Carroll said. He advised that tipped employees are considered minimum‑wage employees on paper and that employers must ensure employees reach the minimum wage each day; tip pooling and tip credit issues require careful recordkeeping.
Child labor: Carroll detailed strict hour and task limits for 14–15‑year‑olds and for 16–17‑year‑olds and cautioned that violations can lead to civil penalties and civil litigation if an injured minor is involved. He also warned that using temporary agencies to supply workers can create joint‑employer liability if the agency fails to pay wages or taxes.
Seasonal exemption: Carroll said a federal seasonal employer exemption may apply when 66% of revenue occurs in a six‑month period; he advised licensees to verify whether they meet the statutory test.
Ending: Carroll provided the Department of Labor help line and urged employers to call with questions about wages, overtime, child labor or H‑2B/H‑2A seasonal worker rules; the Wage and Hour office will respond within 24 hours to inquiries.
