Massachusetts Laws Regarding Payment of Final Paychecks
Final Paycheck Requirements Under the Massachusetts Wage Act
Employees depend on their paychecks. In fact, most employees need each of their paychecks. This is especially the case for employees whose employment is ending as their paychecks are about to disappear. As a result, the Massachusetts Supreme Judicial Court, in the case of Reuter v. City of Methuen (available here) has ruled that employers face very stiff penalties if they do not comply with the Massachusetts Wage Act’s requirements regarding the payment of final wages. This requirement is strict and employers must comply even if doing so is hard or inconvenient.
When is my final paycheck due under Massachusetts wage laws if I resign or quit from my job?
According to the Massachusetts Wage Act (MGL ch. 149 §148), employees who resign or quit must be paid their final wages, including any unused accrued vacation time, on the next regularly scheduled pay date. That’s an absolute requirement. Employers who pay those employees on a date after that next pay date, or fail to pay the employee at all, violate Massachusetts law. Violations of the Massachusetts Wage Act entitle employees to mandatory triple damages, attorneys’ fees, interest, and costs.
When is my final paycheck due under Massachusetts wage laws if my employment is terminated or if I am fired?
According to the Massachusetts Wage Act (MGL ch. 149 §148), employees who are terminated or fired must be paid their final wages, including any unused accrued vacation time, on the day of termination. That means more than just initiating a direct deposit. Instead, Massachusetts law requires that the final wages be under the complete control of the terminated or fired employee on the exact day they are terminated or fired. Initiating a direct deposit on the day of termination that is available in your bank account the next day violates Massachusetts law. Employers who pay terminated employees after their last day of employment, or fail to pay a terminated employees final paycheck, violate the Massachusetts Wage Act. Violations of the Massachusetts Wage Act entitle employees to mandatory triple damages, attorneys’ fees, interest, and costs.
What “wages” must my employer include on my final paycheck according to the Massachusetts Wage Act?
According to the Massachusetts Wage Act (MGL ch. 149 §148), “wages” to be included on an employee’s final paycheck include compensation for hours worked up to the end of your employment, any accrued unused vacation pay, paid time off, floating holiday pay, and certain commissions. This definition generally does not include payment for accrued sick leave. Under some circumstances, this definition can also include certain bonuses.
My Massachusetts employer did not pay my wages on time, what do I do?
If your employer has not paid you your wages on time you should contact a lawyer immediately. You can contact us by clicking on the “Contact Us” button below. We have recovered well over $10,000,000 for employees due to violations of the Massachusetts Wage Act Law.
ADDITIONAL TOPICS IN MASSACHUSETTS AND FEDERAL WAGE AND HOUR LAWS
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