Massachusetts Wage Act Triple Damages: Protecting Employee Rights and Fair Compensation
Empowering Employees for Fair CompensationIn Massachusetts, the Wage Act mandates that employers pay triple damages when employees are not compensated properly or on time. This extends to various types of earnings, including unused vacation time, commissions, and regular wages. In the past, employers could rectify late payments before employees filed complaints, offering a window of opportunity to correct honest mistakes without incurring significant liabilities. However, a recent Massachusetts Supreme Judicial Court ruling has shifted the rules in favor of employees, making even slight payment delays a costly endeavor for employers.
Strict Liability for Late Paid WagesThe Supreme Judicial Court's decision in Reuter v. City of Methuen, dated April 4, 2022, has heightened the consequences of late wage payments. Employers must now bear the cost of any delay by paying triple damages, regardless of the cause, placing a considerable burden on them. While this particular case dealt with the payment of unused vacation time, the precedent could apply to any delayed wage or commission payment, whether at termination or as part of regular payroll cycles.
Final Paycheck At TerminationWhen you leave your job voluntarily, all earned wages must be paid on the next regular payday. If you are terminated, you should receive your final paycheck on the day of termination. This includes payment for unused accrued vacation time (excluding sick time), all hours worked, time-and-a-half for overtime (for non-exempt employees), and any earned commissions. Failure to make these payments on time can now result in triple damages.
Late Paid CommissionsCommissions often operate on a different payment schedule than the Wage Act's requirement for timely payment within six days of the pay period's end. Previously, the timeliness of commission payments during employment received less attention, as late payments only accrued interest. With the Reuter decision, employees with commission-based income may scrutinize the timeliness of these payments more closely.
Review of Regular Payroll CyclesMassachusetts' wage payment timing rules differ from those of many other states. Companies with Massachusetts employees or those using national payroll services may have payroll cycles slightly misaligned with the Wage Act's six-day deadline. While minor delays historically had minimal legal consequences, the Reuter decision has amplified the importance of adhering to this deadline.
Pursuing a Wage Act Claim After the Reuter DecisionWhile the Reuter decision hasn't altered the initial process for filing Wage Act claims, it has changed the dynamics of resolving disputes. Employers can no longer avoid triple damages by making payments before complaints are filed. This means employees have a chance to resolve matters without risking the loss of triple damages, potentially facilitating amicable settlements with their employers.
Attorneys Fees in Wage Act CasesThe Reuter decision also leaves intact the employers' liability for employees' legal fees and costs if the employees prevail in their claims. This financial safeguard ensures that employees can pursue legal action against their employers without worrying about affordability and encourages employers to seek resolutions to avoid legal expenses.
If you believe your wage rights have been violated under the Massachusetts Wage Act, we can provide expert guidance to help you navigate this complex legal landscape and seek the compensation you deserve. Contact us today to protect your rights and secure fair compensation. |
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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 guide you through the complexities of the Massachusetts Wage Act, ensuring you understand your rights and helping you seek fair compensation for unpaid wages, commissions, and other earnings. Contact us today for expert legal assistance. 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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