Massachusetts Now Mandates Treble Damages for Wage and Hour Violations
Effective July 13, 2008, Massachusetts employers failing to comply with their state's wage and hour laws will be subject to the mandatory imposition of treble damages for certain violations. (The law already provides for reimbursement of a prevailing employee's court costs and reasonable attorney fees.) Among others, this new law affects the following situations:
- Failure to pay minimum wage or (where applicable) the prevailing wage
- Failure to pay required overtime
- Worker misclassification (e.g., misclassifying an employee as an independent contractor)
- Failure to pay wages or incentive compensation (such as bonuses or commissions) in a timely fashion
- Failure to pay final wages and accrued vacation to terminated employees in a timely fashion
The new law does not take into account an employer's good faith or other mitigating measures, such as clerical or administrative errors. It thus changes the calculus for employees and plaintiffs' lawyers. More employees are likely to bring suit, and the value of settlements will go up. Accordingly, employers are advised to review their wage and hour practices and policies to ensure that they are in compliance with all applicable requirements.
