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Showing posts with the label Bonuses

Massachusetts Trial Court Holds Quarterly Bonuses May Be ‘Wages’ Under Wage Act

On January 22, 2026, in  Pres v. Sensys Gatso USA, Inc. , a Massachusetts trial court ruled that the Massachusetts Wage Act (the Wage Act) encompasses quarterly bonuses not conditioned on defined contingencies. This decision highlights the importance of Massachusetts employers identifying and addressing explicit conditions or contingencies in employee bonus agreements. The draconian ramifications of failing to abide by the Wage Act include unpaid wages, mandatory treble damages, and attorneys’ fees. The Wage Act The Wage Act does not explicitly define the term “wages.” It provides that wages  include  “any holiday or vacation payments due an employee under an oral or written agreement,” and “commissions when the amount of such commissions, less allowable or authorized deductions, has been definitely determined and has become due and payable.” Massachusetts appellate courts have uniformly concluded that conditional or contingent compensation falls outside the scope of the ...

Conducting a Wage and Hour Audit: Eating the Elephant One Bite at a Time

Wage and hour violations are rarely intentional. They typically stem from common missteps such as outdated job descriptions, payroll errors, miscommunication, or genuine confusion about complex federal and state laws and regulations. So, as too many employers know, a wage and hour lawsuit or Department of Labor (DOL) investigation can hit a business out of the blue, often without prior notice. Such actions can cripple even a well-run organization due to stringent laws that impose heavy penalties and encourage collective and other actions with their provisions for recovery of extensive damages, including back wages, liquidated damages, and attorneys' fees. While many employers understand that a proactive wage and hour audit is the most effective way to reduce exposure to such an action, the prospect of conducting one may seem daunting, even to the most sophisticated HR professional. The good news is that an audit becomes more manageable when approached with clear objectives and disc...

What Happens in December Doesn’t Stay in December: A Post‑Holiday Survival Guide for Employers

’Twas the week after the holidays… ’Twas the week after the holidays, when all through the office, The parties were over, but not every consequence. The bonuses were issued, the PTO was spent, But those few awkward moments can become a lament. While the winter holidays may be winding down, the real workplace challenges often emerge  after  the decorations come down. New complaints surface, feelings about bonuses linger, and questions arise about any new changes implemented by the organization. To help employers manage the post-holiday fallout (and start the new year on steady footing), here are some seasonally inspired reminders to keep in mind. Silent Night? Not Quite: When Holiday Issues Surface Later Holiday gatherings may be over, but concerns often arise days or even weeks afterward. Take employee complaints seriously, regardless of whether the incident occurred weeks ago. Investigate promptly and ensure all complaints are handled consistently. Avoid common missteps, such...

Hiring in Colorado? Check Your Postings Before the Government Does

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  Colorado employers should be aware of a recent enforcement uptick regarding online job posting rules – especially since missteps can result in huge fines up to $10,000 per violation.   The Colorado Equal Pay for Equal Work Act (EPEWA) requires employers to include detailed information about pay, benefits, and application logistics in their job postings. These requirements have been in place since 2021 and all Colorado employers should have already incorporated them into the hiring process.  Unfortunately, however, employers may not realize that not just job seekers but the government can search their job postings – and that enforcement efforts are rising.  Given the   high stakes for violations, now is a great time to review your job postings for compliance and curb the potential for costly errors . Here are the answers to your top five compliance questions.   1. What Counts As a Posting? The EPEWA’s requirements apply to postings for any “job opportunity...