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…
Governor Baker Attempts to Take Away Earned Overtime
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UPDATED November 7, 2019: Due to an impressive level of pushback from Massachusetts workers, the provisions in the Baker budget that would have deprived commission-only workers of their earned overtime were removed during deliberations in the Massachusetts legislature. Two key takeaways…
Overtime for Commission-Only Employees
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On May 8, 2019, the Massachusetts Supreme Judicial Court issued a major decision guaranteeing overtime to employees who are paid on a commission-only basis. The case is Sullivan v. Sleepy’s LLC. The SJC was considering whether salespeople who receive only…
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.…
Overtime for Car Sales in Massachusetts
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Most salespeople who work in car dealerships are paid on commission, or receive a base salary plus commissions. A common misconception is that these salespeople are exempt from receiving overtime wages. This is not true. Car salespersons are entitled to…
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…
Introductory Post from a Massachusetts Wage Lawyer
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I’m a little late with this introductory post, but now that this page has garnered a bit of readership, I figured I would take a moment to introduce myself. My name is Nicholas Ortiz. I graduated from Vanderbilt University and…