The Massachusetts Wage Act (“Wage Act” or “Act”) requires all earned wages to be paid within six days of the end of pay period. M.G.L. c. 149, s. 148. The Wage Act applies to commission payments as long as the…
Category: Commissions
Unpaid Sales Commissions in Massachusetts
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The Massachusetts Wage Act, which provides plaintiffs with triple damages and attorneys’ fees for successful unpaid wage claims, also applies to commissions. M.G.L. c. 149, s. 148 states: This section shall apply, so far as apt, to the payment of commissions…
Commissions and Profit Sharing
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The United States Court of Appeals for the First Circuit recently decided the Wage Act commissions case, Ellicott v. American Capital Energy, Inc., No. 17-1421 (1st Cir. 2018). This case is interesting for a few reasons, but I’ll address two here.…
Commission Pay and Overtime Rights
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Are you an employee who is paid commissions only, or a combination of salary plus commissions? You might think you are not entitled to overtime pay. However, unless you are exempt from the overtime law (such as traveling salespersons who…
Company Discretion and Employee Commissions
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Oftentimes, neatly tucked away in a commission plan is some language that allows an employer complete discretion in administering, changing, interpreting, or cancelling the plan. On this point, an interesting case was just decided in the United States District Court…
Wage Forfeiture and Valid Set-Offs in Massachusetts
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Generally, any contractual provision that requires an employee to forfeit earned wages is a “special contract” prohibited by the Massachusetts Wage Act, M.G.L. c. 149, § 148. As the Attorney General has put it, “an employer may not enter into…
Are Bonuses Wages in Massachusetts?
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As I wrote previously, the Massachusetts Appeals Court recently decided the case of Suominen v. Goodman Industrial Equities, 78 Mass. App. Ct. 723 (2011). In Suominen, the plaintiff was a former construction manager of a small real estate development firm and was…
Bonuses and Commissions under the Wage Act
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It matters a great deal whether a certain type of pay is covered by the Massachusetts Weekly Payment of Wages Act (“Wage Act”). If a type of unpaid compensation is covered by the Wage Act, an employee is entitled to…