Page 16 - BusinessWest May 30, 2022

Law
WBy John Gannon, Esq.
age-and hour-com- pliance is never easy for businesses, and a recent decision from the Massachusetts
Supreme Judicial Court (SJC) just made things harder.
In Reuter v. City of Methuen, No. SJC- 13121 (Mass. April 4, 2022), the Massachu- setts Supreme Judicial Court (“SJC”) ruled that paying employees late is equivalent to not paying at all. This means employees are entitled to triple damages if they are not paid on time, because under the Massachu- setts Wage Act, employers who fail to pay wages are liable for three times the unpaid
“In Reuter v. City of Methuen, No. SJC-13121 (Mass. April 4, 2022), the Massachusetts Supreme Judicial Court (“SJC”) ruled that paying employees late is equivalent to not paying at all.”
wage amount (treble damages). With that case in mind, here are a few common com- pensation mistakes employers should avoid to ensure solid wage and hour compliance.
Failure to pay wages on time: The Massa- chusetts Wage Act requires employers to pay all wages, including any accrued, unused vacation time, to employees who are termi- nated on their last day of work. For employ- ees who voluntarily resign, all wages are due on or before the next regularly scheduled pay date.
Too often, employers pay final wages
a day or a week too late. This is especially common with unpaid commissions. The problem here is that under the Reuter v. City of Methuen case, those wages are not paid on time. Therefore, the employee is due triple damages under the Wage Act.
Common Compensation
Blunders
Violations of State, Federal Wage-and- hour Laws Can Prove Costly
16 MAY 30, 2022 LAW BusinessWest