Important change to wage law

MANAGEMENT MOXIE Nimble News

MASSACHUSETTS WAGE ACT MAKES TRIPLE DAMAGES MANDATORY

Massachusetts is the first state to enact what many consider to be an anti-business wage law. On April 14, 2008, Senate Bill No. 1059, titled “An Act to Clarify the Law Protecting Employee Compensation” became law and will become effective on July 13, 2008. From 1993 until 2005, most courts interpreted the Massachusetts Wage and Hour Laws to require treble (triple) damages. However, in 2005, the Massachusetts Supreme Judicial Court ruled that in order for any court to award an employee multiple damages, that employee would have to prove her employer acted with “evil motive” or “reckless indifference” to her rights. The Supreme Judicial Court found treble damages to be punitive in nature and ruled that such damages should be awarded only to punish willful misconduct.

The new provision in the law obliterates the Court’s ruling by calling for automatic treble damages. The new law makes practically any violation of Massachusetts Wage and Hour Laws subject to mandatory treble damages with no available defense. Massachusetts employers will undoubtedly find themselves facing a significant increase in state wage and hour lawsuits as these wage claims are now more attractive to plaintiff’s attorneys. The new statutory penalties are a somber reminder of the significance of up to date employment policies.

Under this new legislation, employers are subject to treble damages if they violate, even inadvertently, any of the following wage and hour laws:

Overtime pay;
Minimum wage;
Tip pooling and distribution of gratuities;
Vacation pay;
Sunday and holiday premium pay;
Independent Contractor Law classification (see 4/23/08 Moxie);
Pay for training or travel time;
Rest periods;
Payment scheduled for nonexempt and/or exempt employees;
Bona fide employee wage classification;
Payment of the final check to a discharged employee on the day of the actual discharge;
Failure to maintain records of payroll deductions.

Compliance with Massachusetts wage and hour obligations is a tedious responsibility for all employers. The good news is that we are here to help. We have and will provide audits for our clients and friends to help them protect their bottom line. These audits will help identify danger areas in situations that need special attention so that you can avoid legal problems rather than spend your time and money trying to resolve them.

Questions?
Contact info@neworkplacelaw.com or call 508-548-4888

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