Rodman Employment Law Attorney Elisa A. Filman recently spoke with Massachusetts Lawyers Weekly about a case involving an employee who claimed she was owed more than $130,000 in unpaid compensation after being laid off.
A Massachusetts Superior Court judge ruled that the payments, which were based on the company’s overall revenue rather than the employee’s individual sales, did not qualify as commissions protected under the Massachusetts Wage Act.
Elisa discussed what the decision means for employers structuring compensation agreements.
“If the goal is to avoid Wage Act exposure while still providing incentive compensation, plans should avoid sales commission language and clearly tie payment to company-wide performance.”
Elisa A. Filman, Attorney, Rodman Employment Law
The ruling underscores the importance of clearly defining how employees earn incentive compensation and how those payments are calculated.
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