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MASSACHUSETTS WAGE ACT- FIRST STATE TO MANDATE TREBLE DAMAGES

On April 15, 2008, the Legislature passed a bill making Massachusetts the first state in the country to impose automatic treble damages against any employer that violates wage and hour laws. Prior to this recent change in law, treble damages were available only in cases in which the court concluded that an employer had willfully and intentionally committed an infraction. In fact, the federal courts and all other states allow employers to assert a good-faith defense to a Wage Act damage claim. Accordingly, the new law potentially puts Massachusetts at the forefront for plaintiffs pursuing Wage Act violations, some of which could blossom into class-action claims.

This somewhat radical departure from previous policy regarding wage and hour violations has distressed many employers, who are concerned that they may face steep fines for minor violations, despite acting in good faith. On the other hand, many employees can find comfort in the fact that less than scrupulous employers will doubtlessly think twice before refusing to pay employees on potential wage and hour cases where the law is being construed so rigidly. One thing is certain; there will be much litigation around wage and hour issues where businesses face such steep penalties for potentially minor violations.