MA tipped wage: $6.75 + tips = $15.00. Reconciled per shift, not per pay period.
Massachusetts allows tipped workers to be paid a service rate of $6.75/hr cash, with tips bringing total compensation to at least $15.00. The maximum tip credit is $8.25/hr. The distinctive Massachusetts mechanic: the shortfall reconciliation is per-shift, not per pay period. If a worker's cash + tips for a single shift fall short of $15/hr, the employer makes up the difference on that shift's earnings — at the end of that shift, not at the end of the workweek. Service rate eligibility requires the worker to customarily and regularly receive more than $20/month in tips. Manager and supervisor participation in tip pools is barred under MGL c. 149 § 152A.
Tipped Wage Reconciliation
Tracks cash + declared tips per shift. Calculates per-shift make-up pay automatically. Blocks manager/supervisor inclusion in tip pools. Surfaces $20/month service rate eligibility check.
What those rules do as tipped shifts close.
The hero card configuration: Critical on per-shift make-up, Block on tip pool composition, Flag on service rate eligibility.
At end of each tipped shift, Teambridge calculates: (cash wage × hours) + (declared tips). If total < ($15.00 × hours), the employer make-up amount is added as a separate line item — paid out by the end of that shift's pay cycle. This is more demanding than federal FLSA workweek-level reconciliation.
When a tip pool is configured, Teambridge blocks any worker tagged as manager or supervisor from being included. MGL c. 149 § 152A bars management participation. Inclusion exposes the entire tip pool to invalidation and full minimum wage liability for all participants.
When a worker is configured at the service rate, Teambridge tracks declared tips against the $20/month threshold. Workers below the threshold cannot be paid the service rate; they must receive the full $15.00 cash. Surfaces as a Flag for review during slow tip months.
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MGL c. 151 § 7 + § 149 § 152A — service rate, reconciliation, and tip pools.
Massachusetts's tipped wage rules are stricter than federal in three places: per-shift reconciliation (vs federal workweek), the $20/month eligibility threshold (vs federal $30), and the strict no-management-in-tip-pools rule.
$6.75 service rate + $8.25 tip credit
Massachusetts allows employers to pay tipped workers a service rate of $6.75/hr cash, with up to $8.25/hr in tip credit closing the gap to the $15.00 floor. To use the service rate, the employer must inform the worker in writing of the tip credit provisions before applying the reduced rate. The service rate has not been increased since 2023 (was $5.55 in 2022).
Per-shift reconciliation requirement
Unlike federal FLSA (which reconciles tipped workers' compensation at the workweek level), Massachusetts requires reconciliation at the end of each shift. If a worker's cash wage + declared tips for a shift fall short of the $15/hr minimum, the employer must pay the shortfall on that shift, not at week-end. This is stricter than every other state with tip credit. A worker with strong tips on Saturday but weak tips on Tuesday cannot have Saturday's overage cover Tuesday's shortfall.
Teambridge handles per-shift reconciliation automatically.
MA's per-shift reconciliation requirement is the single biggest tipped-wage operational difference between Massachusetts and most other states. Per-shift logic is the only way to get this right.
Cash + tips checked against $15.
When a tipped shift closes, Teambridge calculates the worker's effective hourly rate (cash + declared tips ÷ hours). If below $15, make-up pay auto-adds to that shift's earnings. The math is shift-level, not workweek-level.
Manager exclusion enforced.
When tip pools are configured or modified, Teambridge validates that no manager or supervisor is included. Roles tagged as management automatically exclude. Inclusion attempts block at save.
$20/month threshold.
Each month, declared tips per worker aggregate. Workers approaching the $20 threshold surface for review. Falling below requires full minimum wage for that month — tracked automatically.
Reconciliation defensible.
Every shift logs: cash wage, declared tips, hours, effective rate, make-up pay (if any). Every pay period logs the aggregate. Defensible against AGO Fair Labor Division wage complaint or private suit under § 150.
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