News & Analysis as of

Wage Act Wage and Hour 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

Verrill

Massachusetts Employers Beware: Any Late Wage Payment Means Liability for Triple Damages

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Last month, in Reuter v. City of Methuen, the Massachusetts Supreme Judicial Court held that any late payment of wages by an employer results in strict liability for treble damages under the Wage Act. Prior to this ruling,...more

Bowditch & Dewey

Wage Act Updates: Massachusetts’ Highest Court Finds Limited FLSA Preemption of Wage Act Remedies and Employers Should Prepare for...

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MASSACHUSETTS SUPREME JUDICIAL COURT RULING – GOOD NEWS FOR EMPLOYERS - It has been a busy Spring for the Massachusetts Supreme Judicial Court (SJC). On April 14, 2022, on the heels of Reuter v. City of Methuen (see our...more

Mintz - Employment Viewpoints

Massachusetts Supreme Judicial Court Holds That Wages Due Solely Under the Federal Overtime Statute (FLSA) Are Not Trebled Under...

The Massachusetts Supreme Judicial Court (“SJC”) – Massachusetts’ highest court – recently held in Devaney v. Zucchini Gold that employees who prove only a violation of the federal Fair Labor Standards Act (“FLSA”) are not...more

Goulston & Storrs PC

Massachusetts Imposes Additional Potential Liability on Employers for Wage-and-Hour Compliance

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In a departure from earlier court decisions, the Massachusetts Supreme Judicial Court (SJC) has imposed additional potential liability on employers for wage-and-hour compliance. In Reuter v. City of Methuen, the SJC explained...more

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

Massachusetts Supreme Judicial Court Holds That FLSA Preempts Wage Act Remedies for Federal Overtime Violations

On April 14, 2022, the Massachusetts Supreme Judicial Court (SJC) ruled that when an employee pursues and succeeds on a claim for the failure to pay overtime wages under the Fair Labor Standards Act (FLSA), the employee may...more

Foley Hoag LLP

Massachusetts Supreme Judicial Court Rules that Employees with Federal Overtime Claims Cannot Obtain Remedies Under the...

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On April 14, 2022, the SJC held that where employees’ sole claims for overtime wages rest on the employer’s liability under the FLSA, employees are limited to the remedies provided under the FLSA, and may not receive treble...more

Foley Hoag LLP

Massachusetts Supreme Judicial Court Rules Employer Must Pay Treble Damages on Late Wage Payments

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On April 4, 2022, the SJC held that employers must pay treble damages on late wage payments, even if the employee has not filed a Wage Act complaint with the Office of the Attorney General or a court before the payment is...more

WilmerHale

Massachusetts SJC Rules that Employers are Strictly Liable for Treble Damages for Delayed Wage Payments

WilmerHale on

Overturning nearly 20 years of lower-court precedent, on April 4, 2022, the Massachusetts Supreme Judicial Court (SJC) issued a landmark decision holding that an employer is strictly liable for treble damages for any late...more

Partridge Snow & Hahn LLP

Massachusetts Wage Update: SJC Overturns Years Of Precedent And Finds That Employers Must Automatically Pay Triple Damages If...

It is well known that if a Massachusetts employer terminates an employee, the employer risks being liable for three times the amount of wages owed if payment is not made on the last day of employment. A lesser known corollary...more

Bowditch & Dewey

Massachusetts Employers Are Strictly Liable for Treble Damages for Late Wage Payments

Bowditch & Dewey on

On April 4, 2022, in Reuter v. City of Methuen, the Massachusetts Supreme Judicial Court held that employers are strictly liable for treble damages on late wage payments even when an employee has not yet filed suit asserting...more

Holland & Knight LLP

Massachusetts SJC Upends Existing Law, Requires Treble Damages on Late-Paid Wages

Holland & Knight LLP on

The Massachusetts Supreme Judicial Court (SJC) on April 4, 2022, handed down a decision with major implications for Massachusetts employers accused of wage-and-hour law violations or late payment of wages. In Reuter v. City...more

Goodwin

No Safe Harbor for Late Payments to Massachusetts Employees: Pay on Time or Pay Triple

Goodwin on

On April 4, 2022, the Massachusetts Supreme Judicial Court (“SJC”) issued its decision in Reuter v. City of Methuen, holding that an employer must pay treble (triple) damages if the organization is late in paying the wages of...more

BakerHostetler

Massachusetts Supreme Judicial Court Abrogates Employers’ Sole Defense to Automatic Treble Damages Liability for Late Final Wage...

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On April 4, the Massachusetts Supreme Judicial Court handed employees there yet another victory in Reuter v. City of Methuen, holding that they are automatically entitled to triple damages for any late payment of final wages...more

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

Massachusetts SJC: Employers Are Strictly Liable for Treble Damages for Late, Pre-Suit Wage Payments

On April 4, 2022, in Reuter v. City of Methuen, the Massachusetts Supreme Judicial Court (SJC) held that employers are strictly liable for treble damages for making late wage payments, even when an employee has not yet filed...more

Epstein Becker & Green

Massachusetts Court Rules on Massachusetts Wage Act’s Treble Damages

Employers take note: the Massachusetts Supreme Judicial Court (“SJC”) ruled this week for an employee seeking treble damages for untimely paid wages under the Massachusetts Wage Act (“Wage Act”), even though the employer had...more

Conn Kavanaugh

Late Payment of Wages Means Triple Liability for Employers Even If Wages Are Paid Before Suit is Filed

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On April 4, 2022, the Massachusetts Supreme Judicial Court (“SJC”) dispelled the notion that employers can avoid triple liability for late payment of wages under the Massachusetts Wage Act, M.G.L. c. 149, § 148 (“Wage Act”),...more

Proskauer - Law and the Workplace

SJC Finds Commissions Lost Due to Retaliation Are Subject to Trebling

In a February 12, 2020 decision, Parker v. EnerNOC, Inc., SJC-12703, the Massachusetts Supreme Judicial Court held that the full commission which would have been due to an employee had she not been retaliated against and...more

Foley Hoag LLP

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

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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

Conn Kavanaugh

Beware of the Wage Act – Review Pay Plans for Commission Based Inside Salespersons and Stay Alert for Future Claims

Conn Kavanaugh on

In early May, the Massachusetts Supreme Judicial Court held that 100% commission-based inside salespersons are entitled to separate, additional overtime pay and premium pay for Sunday work. The decision, Sullivan v. Sleepy’s...more

Burns & Levinson LLP

Recent Case Invalidates Many Dealership Sales Person Pay Plans: What You Need to Know to Stay in Compliance

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On May 8, 2019, the Massachusetts Supreme Judicial Court (the “SJC”) issued an important decision concerning the interpretation of the Massachusetts Wage Act, and related regulations. The decision issued by the SJC, titled...more

Proskauer - Law and the Workplace

Massachusetts SJC Weighs in on Wage Act Class Actions and Offers of Judgment

On Friday April 12, 2019, the Massachusetts Supreme Judicial Court confirmed that plaintiffs seeking to bring class actions asserting Massachusetts Wage Act (“Wage Act”) violations must meet the certification standards set by...more

Jackson Lewis P.C.

“Catalyst” Test Applicable To Awarding Attorney’s Fees For State Wage And Hour Claims, Massachusetts Supreme Judicial Court Holds

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Rejecting the federal standard for determining whether a party has “prevailed” on his or her claim under the Massachusetts Wage Act, Mass. Gen. Laws ch. 149, §§ 148 & 150, the Massachusetts Supreme Judicial Court has held...more

Proskauer - Law and the Workplace

Massachusetts Supreme Judicial Court OK’s Attorneys’ Fees for Wage Act Settlements

As has been long anticipated, the Massachusetts Supreme Judicial Court recently gave a green light to plaintiffs’ attorneys seeking a fee award under the Commonwealth’s Payment of Wages Act, even where an action ends in...more

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