Webinar Recording: Commission and Incentive Compensation Plans After Reuter, Batten Down the Hatches

As you may have seen, on April 4, 2022, the Massachusetts Supreme Judicial Court interpreted the Wage Act to require treble damages for any late payment or underpayment of wages in the Bay State, including those resulting from honest mistakes and errors that are promptly fixed.  One of the greatest points of exposure facing employers following this ruling is claims for commissions brought by sales personnel and other disputes pertaining to incentive pay.  Such claims had been on the rise in Massachusetts, even before the SJC’s recent Reuter ruling, often presenting material amounts in controversy based on terms in plans that were asserted to be ambiguous or unenforceable.  The stakes posed by such disputes have now tripled, and it is more important than ever for employers to review their commission and incentive plans to avoid provisions that may give rise to Wage Act claims.

The prospect of treble damages is likely to encourage employees to file more Wage Act complaints of all kinds, including claims for treble damages arising from disputes about commissions and incentive compensation. 

This program takes a deeper look at what employers in Massachusetts should do to insulate their commission and incentive compensation plans from Wage Act claims, in light of the Reuter decision.

Specific topics covered include:

• Whether commissions and other types of incentive compensation are “wages”
• How Reuter changes the landscape for payment of incentive compensation
• Tips to keep compensation plans compliant with Massachusetts wage laws 
• Q&A with the Seyfarth team regarding specific compensation plan issues

For reference, Seyfarth’s Boston Wage and Hour attorneys previously authored a full summary of the decision and hosted a micro webinar on practical takeaways and considerations for Massachusetts employers. 

If you have any questions, please contact Christian Pourreau at cpourreau@seyfarth.com and reference this event.

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This webinar is accredited for CLE in CA, IL, NJ, and NY. Credit will be applied for as requested for TX, GA, WA, NC and VA. The following jurisdictions may accept reciprocal credit with these accredited states, and individuals can use the certificate they receive to gain CLE credit therein: AZ, CT, NH. The following jurisdictions do not require CLE, but attendees will receive general certificates of attendance: DC, MA, MD, MI, SD. For all other jurisdictions, a general certificate of attendance and the necessary materials will be issued that can be used in other jurisdictions for self-application. Please note that attendance must be submitted within 10 business days of the program taking place. If you have questions about jurisdictions, please email CLE@seyfarth.com.