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Employers operating in Massachusetts face some of the nation’s most stringent requirements regarding the timing and frequency of wage payments. The Massachusetts Wage Act (M.G.L. c. 149, § 148) mandates prompt payment of...more
Three recent court decisions provide important reminders for businesses with employees in Massachusetts. One involves application of the Massachusetts Wage Act to remote workers; one clarifies potential liability for...more
When Planning to Terminate a Massachusetts Employee, Always Carefully Plan the Final Payment When an employment relationship goes wrong and an employer is faced with terminating an employee, the employer has to evaluate a...more
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
On January 31, 2024, a Massachusetts trial court dismissed a claim against the Boston Globe alleging that the newspaper violated the commonwealth’s Wage Act by failing to pay an executive’s 2020 profit-share which the...more
A federal court in Arizona recently rejected a defense for Arizona employers seeking to avoid liability for unpaid wages under the Arizona Wage Act (AWA). In Arrison v. Walmart, 2023 WL 4421425 (D. Ariz. July 10, 2023), the...more
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
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
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
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
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
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
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
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
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
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
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
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
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
Seyfarth Synopsis: A Massachusetts trial court judge ruled that employees were entitled to premium pay for work on Sundays at a call center, under a Massachusetts statute governing Sunday and holiday work at a retail “store...more
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
Many wage laws and jurisdictions give deference to employment agreements or even past employer practices when determining when commissions are "earned" by an employee and must be "paid" by an employer. As a recent decision...more
The Colorado Supreme Court recently clarified the applicable statute of limitations for wage claims in the State of Colorado. In Hernandez v. Ray Domenico Farms, Inc., No. No. 17SA77, 2018 WL 1146468 (Colo. Mar. 5, 2018)...more
Seyfarth Synopsis: A recent decision by the Massachusetts Supreme Judicial Court limits the scope of the Wage Act to exclude sick time payments and potentially other types of contingent compensation. ...more
The Massachusetts Supreme Judicial Court recently held that the Massachusetts Wage Act does not impose personal liability on board members or investors acting in their normal capacities. In Segal v. Genitrix, LLC, the SJC...more