News & Analysis as of

Sales Commissions Employer Liability Issues MA Supreme Judicial Court

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Supreme Judicial Court Rejects Compensation Plan Allocating Commissions to Overtime and Premium Pay

On March 28, 2024, in Sutton v. Jordan’s Furniture, Inc., the Massachusetts Supreme Judicial Court (SJC) upheld a Massachusetts Superior Court decision finding the furniture retailer’s commission-based compensation scheme...more

Seyfarth Shaw LLP

First Circuit Finds Commission Plan’s Windfall Provision Permissible Under Massachusetts Wage Act

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In Klauber v. VMWare, the First Circuit upheld an employer’s use of a provision in its compensation plan that allowed it to modify commissions on certain large or atypical sales. These “windfall” clauses are common in sales...more

Nutter McClennen & Fish LLP

Trebling of Commission Under Wage Act Required Even Though Commission Was Not ‘Due and Payable’ When Employee Was Wrongfully...

In Parker v. EnerNOC, Parker alleged that she was terminated less than one month after closing the most lucrative client contract in EnerNOC’s history in part because she complained about the amount of her commission for the...more

Seyfarth Shaw LLP

Supreme Judicial Court Trebles Jury Award of Future Commissions

Seyfarth Shaw LLP on

Seyfarth Synopsis: In a February 12, 2020 decision, the Massachusetts Supreme Judicial Court held that future commissions a plaintiff would have earned but for her retaliatory termination were subject to trebling under the...more

Foley Hoag LLP

Unpaid Future Commissions Can Be Trebled under Massachusetts Wage Act, SJC Rules

Foley Hoag LLP on

In Massachusetts, a commission is a wage subject to the Wage Act when the amount of the commission “has been definitely determined and has become due and payable.” Accordingly, an employer’s failure to pay a commission which...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Treble Ahead? SJC Opinion Offers Damages Caution for Massachusetts Employers With Commissioned Employees

On February 12, 2020, the Massachusetts Supreme Judicial Court (SJC) issued an opinion with significant implications for Massachusetts employers with commissioned employees. In Parker v. EnerNOC, Inc. (SJC-12703), the SJC...more

Proskauer - Law and the Workplace

Retail Salespeople Paid on Commission Are Entitled to Overtime and Sunday Pay, Massachusetts SJC Says

On May 8, 2019, Massachusetts’ highest court held that retail salespersons who are paid entirely on a commission or draw basis, may nevertheless be entitled to additional overtime or pay for work on Sundays. The Supreme...more

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