Massachusetts Wage and Hour Laws
Wages, Overtime, and Commissions
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Timely and accurate payment of wages is a fundamental requirement of Massachusetts employment law. However, many employers, particularly small businesses, encounter challenges in meeting this obligation.
These violations can range from overt actions like withholding wages upon termination or consistent late payments to unintentional errors resulting from misunderstandings of wage and hour laws. These errors may involve misclassifying employees as exempt from overtime or miscalculating commissions or overtime pay. The consequences of such mistakes, whether intentional or not, can be significant. Under the Massachusetts Wage Act, if an employee successfully claims a violation, the court must award them three times their actual damages. Employers are also obligated to cover the employee's legal costs and attorney fees. Explore the 10 most common wage and hour violations in Massachusetts to learn more. Should an employee complain about improper payment under Massachusetts wage and hour laws, it's crucial to handle their complaint appropriately. Massachusetts Minimum Wage LawBoth federal and Massachusetts laws establish minimum wage standards, with the Massachusetts minimum wage exceeding the federal minimum wage.
For 2022, employees in Massachusetts must earn a minimum of $14.25 per hour, with another scheduled increase to $15 an hour in 2023. Tipped employees are subject to special rules as their minimum wage rate is lower due to tips supplementing their income. However, employers must ensure that the combination of tips and hourly pay meets or exceeds the overall minimum wage. Additionally, there are specific regulations regarding tip pooling and sharing among service employees. Learn more about the Massachusetts Minimum Wage Law and its implications for you. Overtime Laws and Overtime ExemptionsThe federal Fair Labor Standards Act (FLSA) and Massachusetts overtime laws stipulate that non-exempt employees must receive one and a half times their regular hourly rate for each hour worked beyond 40 in a week.
Employees can only be exempt from overtime if they meet the following criteria:
"Exempt duties" generally fall into three categories: professional, executive, and administrative, but numerous gray areas exist within these categories. The federal Department of Labor has also identified specific jobs as exempt. If your employees work over 40 hours per week, it's advisable to consult with an attorney to verify their proper classification. If your employees travel between job sites during the workday, understanding the rules for compensating travel time is essential. Similar to the Wage Act, both state and federal overtime laws impose penalties for violations, including double or triple damages and payment of the employee's attorney fees. Find out more about Overtime Law and how it could impact your business. Timely Payment of WagesMassachusetts enforces strict requirements regarding the prompt payment of wages. In general, employees must be paid at least bi-weekly, and their paychecks must be received within six days after the close of the last pay period. For instance, if you have a two-week pay period ending on a Friday, payment should be made no later than the following Thursday. Certain salaried employees can opt for monthly payments.
Upon the conclusion of the employment relationship, final wages and accrued unused vacation time must be paid promptly. When an employee voluntarily resigns, the final paycheck must be provided in the next payroll cycle. In cases of termination, these amounts must be paid on the day of termination. Delayed wage payments can significantly affect employees and expose employers to costly damages and penalties, even for unintentional delays. |
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Commissions
Commissions fall under the category of wages as per the Wage Act. Any incentive compensation tied to an employee's sales or revenue-generating activities qualifies as a commission. Employers sometimes pay commissions on a different schedule than regular wages, creating potential issues related to the Wage Act's timing requirements.
Determining whether commissions are due to an employee upon termination can also lead to disputes. The key factor is whether an employee has earned the commission before termination, which often hinges on the employer's commission policy, whether written or unwritten. In some cases, commissions are earned when a customer commits to a purchase, while in others, the commission is earned only when the company receives payment from the customer.
If a commission has been earned before termination, it must be paid to the employee on the day of termination, along with regular wages and vacation pay.
For more insights into commissions under the Wage Act, delve into our comprehensive guide.
Determining whether commissions are due to an employee upon termination can also lead to disputes. The key factor is whether an employee has earned the commission before termination, which often hinges on the employer's commission policy, whether written or unwritten. In some cases, commissions are earned when a customer commits to a purchase, while in others, the commission is earned only when the company receives payment from the customer.
If a commission has been earned before termination, it must be paid to the employee on the day of termination, along with regular wages and vacation pay.
For more insights into commissions under the Wage Act, delve into our comprehensive guide.
Enforcement of Wage and Hour Laws
If you believe you have a valid claim under wage and hour laws, you must begin by filing a complaint with the Massachusetts Attorney General's Fair Labor Division. You can request an investigation by the Attorney General or, more commonly, request a "right to sue letter." This letter is essential for pursuing a lawsuit in state or federal court, and it must be obtained from the Attorney General's office.
Once you possess the right to sue letter, you can initiate a lawsuit. If you have not received your wages before filing a lawsuit, the Wage Act's triple damages provision applies. Therefore, it's essential for employees who have not been paid to submit an Attorney General complaint as soon as possible. Learn more about what to expect as a plaintiff in a civil lawsuit.
This underscores the importance of employers promptly seeking legal counsel when they become aware of payment-related issues or internal wage complaints. Swiftly resolving any legitimate outstanding payments can help employers avoid the triple damages penalty stipulated by the law.
Once you possess the right to sue letter, you can initiate a lawsuit. If you have not received your wages before filing a lawsuit, the Wage Act's triple damages provision applies. Therefore, it's essential for employees who have not been paid to submit an Attorney General complaint as soon as possible. Learn more about what to expect as a plaintiff in a civil lawsuit.
This underscores the importance of employers promptly seeking legal counsel when they become aware of payment-related issues or internal wage complaints. Swiftly resolving any legitimate outstanding payments can help employers avoid the triple damages penalty stipulated by the law.
Meet Our Employment Lawyers
Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as a Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year. She has written a book on employment law: Rules of the Road, What You Need to Know About Employment Laws in Massachusetts, and helped thousands of clients on both the employee and employer side with issues relating to wage and hour laws, including overtime pay, late or unpaid wages or commissions, employee misclassification, and retaliation against employees asserting rights under the wage and hour laws.
Rebecca Rogers: Rebecca is a 2006 graduate of Boston College Law School, and has worked with slnlaw since 2013. She previously worked as an intellectual property litigation attorney for Fish & Richardson in Boston, Massachusetts, and clerked for the Massachusetts Supreme Judicial Court. Rebecca has helped clients with wage and hour disputes, including employee misclassification, late or unpaid wages or commissions, retaliation under the Wage Act, and advice to both employees and employers about wage and hour law compliance.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna has helped clients assess their rights under the wage and hour laws, including employee misclassification, untimely payment of final wages, late or unpaid commissions, retaliation, and advice to small business owners about wage and hour law compliance.
Elijah Bresley: Eli is a 2014 graduate of Seton Hall Law school, and has worked with slnlaw since 2020. He previously worked for a boutique employment law firm outside of Boston, and then for the Labor and Employment department of a large Boston firm. He also spent a year clerking for the judges of the Superior Court in Hartford, Connecticut. Eli has helped clients with wage and hour claims, including late or unpaid commissions, retaliation, employee misclassification, and overtime, and litigated these claims in state and federal courts. He also advises employers about employment policies and wage and hour compliance.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped clients with multiple wage and hour issues, including retaliation, misclassification, and late or unpaid wages or commissions, and litigated these claims in state and federal courts.
How We Can Help
Our experienced team can provide legal guidance and representation to both employees and employers dealing with wage and hour issues in Massachusetts, ensuring compliance with complex regulations and assisting in resolving disputes. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
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