Late payment of final compensation just became significantly more expensive for employers with workers in Massachusetts. In an opinion on April 4, 2022, Reuter v. City of Methuen, the Massachusetts Supreme Judicial Court held that companies that fail to pay wages owed to employees on the day of their termination may be liable for up to triple the amount of the previously owed wages.
These treble damages are based on principles of strict liability, meaning that they can be applied regardless of the intent of the employer or how quickly it corrects the error. The decision marks a major departure from what has been the prevailing interpretation since 2003. Read the full article on PerkinsCoie.com