Boston Compliance Reminder: MA Tip Pool Law (M.G.L. c. 149 §152A)

Panko Compliance · August 13, 2026

Massachusetts General Laws Chapter 149, Section 152A — better known as the Massachusetts Tips Law — controls how restaurants in MA handle tips and gratuities. It is one of the strictest tip-pool statutes in the country, and it's the source of more litigation against MA restaurants than any other employment statute. Crucially, it diverges significantly from federal Fair Labor Standards Act tip rules, so an out-of-state operator can comply with FLSA and still violate MA §152A. Penalties: Improper tip pool (e.g., including a manager): the entire pool is void. Employer owes back ALL pooled tips to the original tipped employees + 3× treble damages (mandatory, not discretionary) + attorney fees. Full compliance guide: alerts.getpanko.app/compliance/boston/tip-pool-152a

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