Massachusetts, like Maryland and the District of Columbia (which has a liquidated damages provision requiring 4 times the wages due), has treble damages when wages are late. According to the Massachusetts statute, the terminated employee must be paid all wages due on the date of discharge, while an employee who resigns must be paid by the next regularly scheduled payroll after the last day of employment.
In a recent case published on April 4, 2022, a city employee was discharged from the city due to alleged acts of criminal conduct. The city paid the regular wages due on discharge but waited three weeks to pay the unpaid vacation, which amounted to $8,952.15. One year after discharge, an attorney contacted the city and demanded $24,872.40 which represented treble damages of the amount of vacation paid. The city declined to pay and following a bench trial, the court awarded $185.42 representing interest for the three weeks and a whopping $75,696.76 in attorneys’ fees and litigation expenses and costs.
The appellate court found that the Massachusetts Wage Act required payment and did not require that the employee demand payment first. The court held that the penalty imposed by the legislature was clear and it “chose the stick rather than the carrot to encourage compliance with the act…”
We advise you to carefully review the following for Maryland, DC, and the Commonwealth, and consider the consequences:
In Maryland, wages for a terminated employee or an employee who resigns must be paid by the next regularly scheduled payroll, after the last day of employment. Failure to pay wages in a timely manner subjects the employer to treble damages and reasonable attorneys’ fees and costs.
In the District of Columbia, wages for a terminated employee must be paid by the next business day from the day of termination, while wages for an employee who resigns are due by the next regularly scheduled payroll after the last day of employment. Failure to pay wages in a timely manner subjects the employer to treble damages, reasonable attorneys’ fees and costs, and potential statutory penalties.
In Virginia, wages for a terminated employee or an employee who resigns must be paid by the next regularly scheduled payroll after the last day of employment. Failure to pay wages in a timely manner subjects the employer to double damages and reasonable attorneys’ fees and costs.If you have questions related to this or other issues related to Employment Law, contact Jose Espejo or Howard Metro at (301) 251-1180.
