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Wage and Hour › Sales Commissions › Wage Act

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

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

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

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

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

Nutter McClennen & Fish LLP

Commissions Contingent on Customer Payments Are Permissible Under the Massachusetts Wage Act  

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In Lukas v. Unidine Corp., et al., Judge Davis held that, under the Massachusetts Wage Act, GL c. 149, § 148, employee commissions can be conditioned on receipt of customer payments on which the commissions are based. Judge...more

Foley Hoag LLP

Recent Decisions Illustrate Strict Interpretation of Massachusetts Wage Act

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Two recent decisions from Massachusetts courts again highlight the strict requirements of the Massachusetts Wage Act, which details how and when employees must be paid. The cases address the treatment of sales commissions and...more

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