Unlawful Wage Deductions: Know Your Rights as an Employee in Massachusetts
Understanding Wage Deductions: Your Rights as a Massachusetts EmployeeIf you're a worker in Massachusetts, it's crucial to understand your rights when it comes to wage deductions. The Massachusetts Wage Act mandates timely payment of all wages and sets strict limitations on what your employer can deduct from your paycheck. Being informed about these regulations can help you protect your hard-earned money and ensure you're treated fairly.
Unauthorized Deductions Can Be a Violation of Your RightsMany employees are unaware that only a few deductions from their paychecks are allowable under state law. Any improper deductions could potentially violate the Wage Act, putting your employer at risk of facing significant penalties, including triple damages.
Understanding Valid DeductionsThe Wage Act allows for "valid set-offs" from the wages of employees paid a salary or hourly wage. When it comes to commission payments, the Act specifies that these payments must be made "less allowable or authorized deductions."
What's Permitted?You have the right to expect certain deductions from your wages, such as union dues, income taxes, or health insurance premiums. These deductions are authorized by statute and serve both the interests of the employer and the employee.
What's Not Allowed?Your employer cannot make deductions from your paycheck that primarily benefit their interests and not yours. Deductions for expenses like the cost of uniforms or other equipment, which should be part of your employer's overhead expenses, are generally not permitted.
Protecting Your Rights: What to DoIf you find yourself in a situation where you suspect unauthorized wage deductions, it's essential to take action. Understanding your rights is the first step. Here are some key points to consider:
1. Taxes and Benefits: Employers are required to withhold federal and state income taxes, as well as social security taxes, from your wages. You can manage your tax withholdings by adjusting the number of exemptions on your Form W-4. Additionally, your employer may deduct pre-tax payments for employee benefits like health, life, and dental insurance. 2. Employee Liabilities or Obligations: If you owe your employer money due to a loan or for damage to company property, your employer can hold you responsible for these obligations. However, specific rules must be followed, including due process and clear agreement terms. 3. Garnishment or Liens: If you have a court-ordered garnishment for reasons such as child support or civil judgments, your employer can deduct as required by the garnishment order. 4. Training or Signing Bonus Reimbursement: If you signed an agreement to repay certain amounts, like relocation expenses or training costs, your employer can enforce these agreements. However, they must adhere to legal guidelines for deductions. 5. Commission-Based Employees: Commissions are considered wages under the Wage Act, but deductions can be more complex. If you're paid on commission, it's wise to consult with an employment lawyer to ensure the deductions from your commissions are lawful. |
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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.
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If you're concerned about wage deductions and your rights as an employee in Massachusetts, our experienced legal team is here to assist you. We can provide guidance, review your specific situation, and help you take the necessary steps to protect your hard-earned wages. 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.