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E-Alerts

Avoid Treble Damages Under The Revised Massachusetts Wage Act

Please be reminded that the revised Massachusetts Wage Act becomes effective this Sunday, July 13, 2008.  State wage violations that occur on or after that date will result in an award of mandatory treble damages (tripling the monetary amount of any damages awarded) to prevailing employees.

Before this law was revised, treble damages were generally awarded only if an employer’s conduct was found to be willful or egregious.  Beginning on July 13, treble damages will be awarded even for unintentional violations committed by employers acting in good faith.

Because the stakes are so high, Massachusetts employers should immediately audit their payroll policies and practices to ensure full compliance with the Wage Act by July 13.  We recommend that the audit, at a minimum, include the following topics:

  • Are employees earning the minimum wage under Massachusetts law?
  • Are employees classified improperly as exempt when they should be non-exempt?
  • Are workers improperly classified as independent contractors when they should actually be employees?
  • Are employees receiving proper meal and rest breaks?
  • Are commission plans, policies and practices in compliance with Massachusetts law and implemented lawfully?
  • Are non-exempt employees being compensated for all overtime hours (which may include holidays and weekends) at the proper corresponding overtime rate?
  • Are employees being paid in a timely manner?
  • Are employees being paid for all time actually worked?
  • Are service employees receiving tips as required by law?

Massachusetts wage-and-hour claims, including class actions, are on the rise.  Given that a $10,000 claim will now automatically be a $30,000 claim, there is no better time to ensure compliance.

Please feel free to contact us if you have questions about the revised Wage Act.  As always, we are available to provide wage-and-hour consultation and to assist with audits and litigation defense.