Mass. high court probes whether employer retention bonus counts as a "wage" under the Wage Act

BOSTON — The Massachusetts Supreme Judicial Court on Monday heard argument over whether a retention bonus paid to induce an employee to remain through specified dates should be treated as a “wage” under the Massachusetts Wage Act, potentially exposing employers to treble damages, attorney fees and criminal penalties if the bonus is not paid.

In oral argument, Raven Moslinger, counsel for the appellant Carlos Nunez, told the court: "The Wage Act starts with a very simple commandment and that is that employers are required to timely and completely pay employees their wages earned." Moslinger argued that where an employer offers money in exchange for specified services and an employee completes the required performance, that payment is an earned wage for purposes of the statute.

The dispute centers on a $15,000 retention payment offered in two installments of $7,500 due on Nov. 18, 2020, and Feb. 18, 2021, which the parties agree Mr. Nunez satisfied by remaining employed, keeping his schedule and remaining in "good performance standing." Moslinger emphasized the bonus was non‑discretionary as offered and said the record shows the employer conceded that Nunez met the conditions.

But Bronwyn Roberts, counsel for Precisely Software Inc.…