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 executive labeled a “commission.” The court concluded that the percentage of the Globe’s profits that the executive may be owed under his compensation plan is not a percentage of revenue he personally generated and as a result is not a “commission” under the Wage Act.
Vinay Mehra, the Globe’s President from 2017 until his June 2020 termination, filed ...
Psychologist Abraham Maslow once observed, “If the only tool you have is a hammer, it is tempting to treat everything as if it were a nail.”[1] That sums up the state of commission litigation under the Massachusetts Wage Act: mandatory treble damages, attorneys’ fees, and the prospect that a court might strike a term of an agreed-upon commission plan as an unenforceable “special contract” that deprives an employee of earned wages has led to an uptick in the number of commission claims. Given these potential consequences, employees sometimes try to fit a square peg into a ...
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 corrected its mistake and paid the wages before the employee filed suit. Writing for the majority in Reuter v. City of Methuen, Justice Scott L. Kafker interpreted the “strict time-defined payment policies” and liquidated damages provisions under the Wage Act to find that the employer was responsible for treble the amount of late wages, and not treble the amount of interest, even though the wages were ultimately paid before the complaint was filed. This underscores the importance of paying all wages, including vacation or PTO in a timely fashion.
On December 17, 2012, in Crocker v Townsend Oil, the Massachusetts Supreme Judicial Court invalidated a settlement agreement, waiver and release to the extent it purported to release claims under the Massachusetts Wage and Hour Laws, but did not expressly include that statute by name among the claims being released. Specifically, the Court held:
We...conclude that a settlement or contract termination agreement by an employee that includes a general release, purporting to release all possible existing claims will be enforceable as to the statutorily ...
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