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Profit-Sharing Arrangement Tied To Employer’s Overall Profits Not Subject to Massachusetts Wage Act

February 20, 2024

Via: JD Supra

Employers with Massachusetts-based employees know that the Massachusetts Wage Act (the “Wage Act”), with its strict liability and automatic treble damages and attorneys’ fees, is a powerful and exacting statute with which they must comply. Powerful as it may be though, application of the Wage Act has its limits. Recently, in Mehra v. Boston Globe Media Partners, LLC, the Business Litigation Section of the Massachusetts Superior Court held that profits under a profit-share agreement were not “wages” regulated by the Wage Act.

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