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 ...