News & Analysis as of

Sales Commissions Wage Act

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Supreme Judicial Court Rejects Compensation Plan Allocating Commissions to Overtime and Premium Pay

On March 28, 2024, in Sutton v. Jordan’s Furniture, Inc., the Massachusetts Supreme Judicial Court (SJC) upheld a Massachusetts Superior Court decision finding the furniture retailer’s commission-based compensation scheme...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Superior Court Finds Incentive Payment Under Profit-Sharing Scheme Is Not a Commission Under Wage Act

On January 31, 2024, in Mehra v. Boston Globe Media Partners, LLC, a Massachusetts Superior Court judge held that a percent-of-profit incentive payment under a profit-sharing scheme is not a commission subject to the...more

Mintz - Employment Viewpoints

Profit-Sharing Arrangement Tied To Employer’s Overall Profits Not Subject to Massachusetts Wage Act

Employers with Massachusetts-based employees know that the Massachusetts Wage Act (the “Wage Act”), with its strict liability and automatic treble damages and attorneys’ fees, is a powerful and exacting statute with which...more

Seyfarth Shaw LLP

First Circuit Finds Commission Plan’s Windfall Provision Permissible Under Massachusetts Wage Act

Seyfarth Shaw LLP on

In Klauber v. VMWare, the First Circuit upheld an employer’s use of a provision in its compensation plan that allowed it to modify commissions on certain large or atypical sales. These “windfall” clauses are common in sales...more

Holland & Hart - Employers' Lawyers

New Guidance on Bonuses and Commissions May Cause Headaches for Employers

Organizations commonly require employees to be employed on the date a commission or bonus is paid to receive the commission or bonus. The Colorado Department of Labor and Employment (CDLE), which interprets and administers...more

Nutter McClennen & Fish LLP

Trebling of Commission Under Wage Act Required Even Though Commission Was Not ‘Due and Payable’ When Employee Was Wrongfully...

In Parker v. EnerNOC, Parker alleged that she was terminated less than one month after closing the most lucrative client contract in EnerNOC’s history in part because she complained about the amount of her commission for the...more

Foley Hoag LLP

Unpaid Future Commissions Can Be Trebled under Massachusetts Wage Act, SJC Rules

Foley Hoag LLP on

In Massachusetts, a commission is a wage subject to the Wage Act when the amount of the commission “has been definitely determined and has become due and payable.” Accordingly, an employer’s failure to pay a commission which...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Treble Ahead? SJC Opinion Offers Damages Caution for Massachusetts Employers With Commissioned Employees

On February 12, 2020, the Massachusetts Supreme Judicial Court (SJC) issued an opinion with significant implications for Massachusetts employers with commissioned employees. In Parker v. EnerNOC, Inc. (SJC-12703), the SJC...more

Nutter McClennen & Fish LLP

Commissions Contingent on Customer Payments Are Permissible Under the Massachusetts Wage Act  

In Lukas v. Unidine Corp., et al., Judge Davis held that, under the Massachusetts Wage Act, GL c. 149, § 148, employee commissions can be conditioned on receipt of customer payments on which the commissions are based. Judge...more

Foley Hoag LLP

Recent Decisions Illustrate Strict Interpretation of Massachusetts Wage Act

Foley Hoag LLP on

Two recent decisions from Massachusetts courts again highlight the strict requirements of the Massachusetts Wage Act, which details how and when employees must be paid. The cases address the treatment of sales commissions and...more

Burns & Levinson LLP

3 Keys to Drafting Commission Plans to Avoid Wage Act Violations

Burns & Levinson LLP on

As I mentioned in some of my prior posts, the Massachusetts Weekly Payment of Wages Act (“Wage Act”) poses many challenges to employers due, in part, to the vagueness of its terms, the strict liability it imposes on employers...more

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