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Case in Point

By Alexander Cerbo, Esq.

 

As most employers are aware, non-payment of wages claims can be made under both state law, the Massachusetts Wage Act (“MWA”), and federal law, the Fair Labor Standards Act (“FLSA”). Although similar in many respects, the MWA and FLSA have several important differences.

First, under the FLSA, either a two-or three-year statute of limitations applies, depending on whether the claimant can demonstrate that the employer acted “willfully.” On the other hand, the MWA provides for a strict three-year statute of limitations. Also, the FLSA allows a prevailing plaintiff to recover costs, attorney’s fees, and potential liquidated damages (i.e. damages collected as a result of a breach of the contract) equal to the amount of lost wages.

Essentially, employees can recover “double damages” or double the amount of back pay damages for unpaid overtime. On the other hand, remedies under the MWA are even greater. Plaintiffs can recover attorney’s fees and costs, both of which are subject to treble, or triple, damages.

When deciding which law to bring a wage claim under, Massachusetts plaintiffs often file under the MWA because of the greater remedies available to them under the MWA. However, this is not always the case.

In a recent matter before the highest court in Massachusetts, several restaurant workers asserted unpaid overtime claims under the FLSA. But these plaintiffs cannot assert these claims under the MWA because restaurant workers, as well as other service-industry employees, as a matter of law, are not entitled to overtime wages. Nevertheless, they attempted to argue that violations of the FLSA entitled them to damages under the MWA. The SJC disagreed, holding that remedies afforded under the state MWA are to be preempted by the federal FLSA where employees’ claims for unpaid overtime wages arise exclusively under federal law.

While this decision is good news for employers, the remedies available under the FLSA remain considerable. To avoid these substantial damages, employers should ensure internal procedures are in place, and consistently followed, so as to guarantee all employees are paid wages owed to them.

 

Alexander Cerbo is an attorney who specializes in labor and employment-law matters at the Royal Law Firm LLP, a woman-owned, women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.

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