Massachusetts Passes Bill Restoring Triple Damages for Non-Payment of Wages

BOSTON, April 24 /PRNewswire-USNewswire/ -- Governor Deval Patrick this past week allowed a bill to pass into law restoring mandatory treble damages to the Massachusetts Wage Act. The bill, S.1059, specifies that treble damages must be awarded to plaintiffs who prevail in wage and hour lawsuits.

"This law ensures fairness for employees, but also for companies who play by the rules and exercise appropriate business practices," Representative Peter Koutoujian said. "In today's uncertain economic climate where many families are struggling to make ends meet," he continued, "it is vital that we reassure workers that they can rely on receiving wages for their work."

"The Legislature has sent a clear message to employers that they must take their obligation to pay wages seriously," said Philip Gordon, Managing Partner of Gordon Law Group, LLP, a Boston law firm focused on representing employees, and the original proponent of the Act. "It's important for our employees to get their paychecks. It's important for our Commonwealth that employers pay taxes. And it's important for our businesses, all of whom suffer when competitors fail to pay wages."

"We're glad Attorney Gordon brought this issue to our attention," Representative Koutoujian said. "I don't think anyone knows the wage laws better than him."

From 1993 until 2005, most courts interpreted the language of the law to require treble (triple) damages. But in 2005, the 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. This resulted in a system where employees found themselves suffering from missed or short paychecks and then negotiating for less than their owed wages, knowing that they could never meet the standard.

S.1059 corrects the Court's interpretation by clarifying the Legislature's intent that treble damages be mandatory. The bill became law after passing the Legislature, because Governor Patrick neither signed nor vetoed it within 10 days of receiving it.

"Make no mistake about this law," Gordon said in response to employer concerns. "It's not punitive. These additional damages are tied strictly to the wages owed, and it makes sense. Employers hire the employees, they set the wage rate, they set the hours and the duties, and they know when wages are due. This is about compensating employees for the losses they suffer when employers then fail to pay the wages -- missed mortgage payment, damaged credit reports, choices between food and heat -- and about maintaining a level playing field for employers who work hard to play by the rules. If you're looking for punishment, we have criminal laws that punish employers who deliberately fail to pay wages."

The clarification covers all wages in Massachusetts, including overtime wages, minimum wages, regular wages, prevailing wages and commissions. It also lines Massachusetts up with a number of other states that mandate treble damages for non-payment of wages.

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Source: Gordon Law Group, LLP

CONTACT: Jon Tapper for Gordon Law Group, LLP, +1-617-314-7804,
jtapper@melwoodglobal.com

2008-04-24 18:33:05 0345046 PRNEWSWIRE