On October 22, 2025, the highest court in Massachusetts ruled that an employee's retention bonuses were not subject to the Massachusetts Wage Act provision requiring wages to be paid on the final day of employment.
On October 22, 2025, the highest court in Massachusetts ruled that an employee's retention bonuses were not subject to the Massachusetts Wage Act provision requiring wages to be paid on the final day of employment. The court concluded the retention bonus payments were not "wages." Instead, they are a form of "additional, contingent compensation" outside the scope of the Wage Act.
Background
Syncsort Incorporated (Syncsort) hired the plaintiff as a full-time employee in May 2020. In the months that followed, the plaintiff was reduced to part-time status and entered into a retention bonus agreement with the company. The agreement specified that the retention bonus was an incentive for the plaintiff to continue working for Syncsort as the company underwent a rebranding effort in the context of a merger.
Per the retention bonus agreement, the employee would receive two equal payments totaling $15,000 if he remained employed and in good standing with the company on two separate retention dates. He remained employed through the first retention date of November 18, 2020, and was paid the first payment twelve days later. A few weeks later, the employee was notified that his employment would end due to a reduction-in-force on February 18, 2021, the second retention date....
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