What is the Massachusetts Wage Act?
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The Massachusetts Wage Act is a statute that governs the timely payment of wages. As repeatedly (and recently) recognized by Massachusetts courts, the Wage Act is intended “for the protection of employees, who are often dependent for their daily support upon the prompt payment of their wages."
The law, however, does not only apply to lower salary or hourly workers. Courts have applied its requirements to highly compensated employees as well. The Wage Act requires wages and salary to be paid within 6 days of the end of the prior pay period. Wages include commissions as soon as they are earned under the employer's commission policy. It also requires payment of all earned wages and accrued and unused vacation time at termination. Employers and employees should pay careful attention to the requirements of the Wage Act. If an employer does not pay what is owed or pays it late, they will be liable for three times the amount owed, and will be required to reimburse the employee for any reasonable costs and attorneys' fees incurred in seeking payment. Learn more here about the Massachusetts Wage Act. |
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