Employment Alert: Salary Deferral Arrangements May Be Void under Massachusetts Wage Act, Even for Top Executivese


Recently, in Stanton v. Lighthouse Financial Services, Inc., the U.S. District Court for the District of Massachusetts held that a salary deferral arrangement in an employment contract was void under the Massachusetts Wage Act (“Wage Act” or the “Act”). This decision is an important reminder that the Wage Act sweeps broadly, and that deferred salary provisions are problematic for several reasons.

Please see full alert for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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