Hiring New Employees in Massachusetts: Legal Guidelines for Employers

Develop a clear job description that accurately reflects the position's responsibilities, required qualifications, and essential functions. Ensure the description complies with Massachusetts anti-discrimination laws and the Americans with Disabilities Act (ADA). Avoid language that could be interpreted as discriminatory based on protected characteristics.

Advertise the position through appropriate channels. In Massachusetts, job postings should not include questions about salary history, as this is prohibited by the Massachusetts Equal Pay Act. Collect applications and resumes from candidates.

Create or update your employment application form to comply with Massachusetts laws. Ensure it does not ask for salary history, criminal history (banned-the-box law prohibits this on initial applications), or other prohibited information. Include an at-will employment disclaimer and authorization to verify information provided.

Interview qualified candidates and select the best fit for the position. In Massachusetts, avoid asking about salary history, criminal background (until later in the hiring process), and other protected characteristics. Document the selection process to demonstrate non-discriminatory hiring practices.

Massachusetts law allows background checks but with restrictions. Obtain written authorization before conducting any background check. Criminal background checks can only be conducted after an initial interview or conditional offer. Follow FCRA requirements for adverse actions based on background check results.

Create a form that complies with both Massachusetts law and the federal Fair Credit Reporting Act (FCRA). The form must be clear, conspicuous, and standalone (not buried in other documents). It must explicitly request permission to conduct the background check and inform the candidate of their rights.

Prepare a formal offer letter outlining the position, compensation, benefits, start date, and employment conditions. In Massachusetts, include language about the at-will employment relationship (if applicable) and any contingencies such as background checks or drug testing. Do not include non-compete provisions in the offer letter itself.

If using a formal employment contract (not required in Massachusetts for at-will employment), draft a document that clearly outlines all terms and conditions of employment. Include position details, compensation, benefits, work schedule, termination provisions, and any other relevant terms. Ensure compliance with Massachusetts wage and hour laws.

Draft an NDA to protect confidential business information. In Massachusetts, NDAs are generally enforceable if reasonably tailored to protect legitimate business interests. Clearly define what constitutes confidential information and the employee's obligations regarding such information. Specify the duration of confidentiality obligations.

Massachusetts has specific requirements for non-compete agreements under the Massachusetts Noncompetition Agreement Act. Non-competes must be in writing, signed by both parties, state the employee has the right to consult counsel, and be provided at least 10 business days before employment begins. They cannot exceed 12 months in duration and must provide for garden leave (50% of salary) or other mutually agreed consideration during the restricted period. Non-competes cannot be enforced against employees who are non-exempt under FLSA, students, employees under 18, or those terminated without cause.

Create or update your employee handbook to include all required Massachusetts policies, including the Paid Family and Medical Leave (PFML) notice, Earned Sick Time policy, Sexual Harassment policy, and information about the Massachusetts Pregnant Workers Fairness Act. The handbook should also include general employment policies, code of conduct, benefits information, and acknowledgment form.

Create a form for employees to authorize direct deposit of their wages. In Massachusetts, employers cannot require direct deposit as the only payment method, so this form should be optional. Include fields for bank account information and authorization language.

Create a form to collect emergency contact information from the new employee. This is not specifically required by Massachusetts law but is a best practice for workplace safety and emergency preparedness.

Compile all necessary forms for enrolling the employee in company benefits programs. Massachusetts requires employers with 11 or more employees to provide health insurance or pay a fair share contribution. Include forms for health insurance, retirement plans, and any other benefits offered.

Federal law requires all employers to verify employment eligibility using Form I-9. The employee must complete Section 1 on or before their first day of work. The employer must complete Section 2 within 3 business days of the employee's start date by examining acceptable documents provided by the employee. Retain the completed I-9 for the required period (3 years after hire date or 1 year after termination, whichever is later).

Have the employee complete the federal W-4 form to determine federal income tax withholding. This form must be completed before the first payroll is processed. Keep the completed form in the employee's payroll records.

Have the employee complete the Massachusetts M-4 form for state income tax withholding. This form determines the amount of state income tax to withhold from the employee's wages. Keep the completed form in the employee's payroll records.

Massachusetts employers must report all newly hired employees to the Department of Revenue within 14 days of hire. This can be done through the Massachusetts New Hire Reporting Center. Information required includes the employee's name, address, SSN, and start date, as well as employer information.

Ensure the new employee is registered for the Massachusetts PFML program. Provide the required written notice about PFML benefits, contribution rates, and how to file claims. This notice must be provided within 30 days of hire.

Massachusetts employers must display specific workplace posters in a location visible to all employees. These include posters on Minimum Wage, Earned Sick Time, Paid Family and Medical Leave, Fair Employment, Workers' Compensation, Unemployment Insurance, and federal posters (FLSA, FMLA, OSHA, etc.).

Create a personnel file for the new employee containing all employment documents. In Massachusetts, employees have the right to review their personnel file, and employers must notify employees when negative information is added to their file. Keep medical information in a separate, confidential file.

Schedule and conduct an orientation session to introduce the new employee to company policies, procedures, and culture. Review the employee handbook and have the employee sign an acknowledgment form. Cover Massachusetts-specific policies like earned sick time and PFML.

Massachusetts law requires all employers to provide workers' compensation insurance. Ensure your new employee is covered under your policy from their first day of employment. Provide the employee with information about their workers' compensation rights and procedures for reporting workplace injuries.