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When does a Massachusetts restaurant need HR?
Written by Back of House Ops, which is one of the options compared. Checked on October 1, 2026. General information, not legal or tax advice.
At what size does a restaurant need HR?
From the first employee. A Massachusetts restaurant owes workers' compensation coverage, earned sick time accrual, new-hire reporting and I-9s for employee number one. More duties arrive at 6 employees (written harassment policy), 11 (sick time becomes paid), 20 (personnel record retention), 25 (the PFML employer share) and 50 (federal FMLA).
What changes at each headcount
Each line below is drawn from our Massachusetts answer library, where the full answer and the official source are linked. How employees are counted differs from rule to rule, so check the linked answer before relying on a threshold.
| Employees | What applies |
|---|---|
| 1 or more | Workers' compensation insurance; earned sick time accrual; new-hire report within 14 days; Form I-9, W-4 and M-4; pay stubs and three-year payroll records; PFML contributions and notices |
| 6 or more | Written sexual harassment policy, given to every employee each year and to new hires |
| 11 or more | Earned sick time must be paid |
| More than 10 on a typical day | Form 8027 for a large food or beverage establishment where tipping is customary |
| 20 or more | Complete personnel records kept for three years after employment ends |
| 25 or more | Employer share of PFML contributions; new-hire reports filed online |
| 50 or more | Federal Family and Medical Leave Act |
Signs the work has outgrown the owner's desk
- Payroll is approved without anyone having reviewed the timecards.
- You could not put your hands on a complete I-9 for every current employee today.
- Nobody is sure whether the last three people who left got their final pay on time.
- The handbook predates your current managers.
- A second location is opening and the first one's paperwork lives in one person's head.
None of these needs a full-time HR hire. They need the recurring work to belong to someone. Our HR owner checklist is a way to test where you stand.
What to do at each stage
| Stage | A sensible setup |
|---|---|
| Opening, first hires | Payroll software or service, a new hire packet, the required notices and posters, workers' compensation in place before day one |
| 10 to 25 staff | A written handbook, a tip pooling policy, documented timecard edits, and one person accountable for the files |
| 25 to 75 staff | Administration handed to a service or a dedicated person; managers trained on write-ups and sick time; an attorney on call |
| Multiple locations | The same policies and forms in every room, and one view of who is employed where |
The templates cover the documents in this table, and the in-house vs outsourced guide covers who should keep them.
Massachusetts rules
The rules any option has to handle
Does a small restaurant need workers' compensation insurance?
Yes. Every employer in Massachusetts must carry it, whatever the number of employees or hours. Without it, the state issues a stop-work order with fines from $100 a day, weekends included.
Full answer and official sourceDoes a restaurant need a written sexual harassment policy?
Yes, with six or more employees. Every employee gets an individual written copy each year, and new hires get one when they start.
Full answer and official sourceIs sick time paid or unpaid, and how do we count employees?
Employers with 11 or more employees must pay for sick time; smaller employers must provide it but can leave it unpaid. Count every full-time, part-time, seasonal and temporary employee on payroll in each pay period of the prior year, then divide by the number of pay periods.
Full answer and official sourceCan a current or former employee see their personnel file?
Yes. Within five business days of a written request, the employer must let the employee review their personnel record, and provide a copy on request, up to twice a year. You must also tell an employee within 10 days when you add negative information, such as a write-up, to their file.
Full answer and official sourceWhat is the 2026 PFML contribution rate, and who pays what?
For 2026 the total is 0.88% of eligible wages. With 25 or more covered individuals, the employer pays at least 0.42% and can withhold up to 0.46% from employees. With fewer than 25, the rate is 0.46%, and all of it can come from employees.
Full answer and official sourceHow fast do new hires have to be reported to Massachusetts?
Within 14 days of the start date, to the Department of Revenue, for every employer regardless of size. Rehires who were off payroll for 30 days or more, including returning seasonal staff, are reported again.
Full answer and official sourceDoes federal FMLA apply to my restaurant?
Only if you had 50 or more employees in 20 or more workweeks this year or last. An eligible employee has worked for you 12 months and 1,250 hours, at a site with 50 or more employees within 75 miles, and gets up to 12 weeks of unpaid, job-protected leave.
Full answer and official sourceDoes my restaurant have to file Form 8027?
You file Form 8027 if you run a "large food or beverage establishment": food or drink served for on-premises consumption, tipping is customary, and the employer normally had more than 10 employees on a typical business day in the prior year. File a separate Form 8027 for each tipped location.
Full answer and official source
Rules checked against official sources on . General information, not legal or tax advice.
Common questions
Does a small restaurant need an HR department?
No, but it needs the HR work done. Even with one employee, a Massachusetts restaurant must carry workers' compensation, track earned sick time, report the new hire and complete an I-9. Someone has to own that, whether it is the owner, a manager or an outside service.
At how many employees is sick time paid in Massachusetts?
Employers with 11 or more employees must pay for earned sick time. Smaller employers must still provide it, but it can be unpaid.
See whether BOHO fits your restaurant
Your restaurant remains the employer of record and approves payroll and employment decisions. BOHO is not a PEO, a staffing agency, or legal counsel.