In Nunez v. Syncsort Incorporated (October 22, 2025), the Massachusetts Supreme Judicial Court held that retention bonuses are not “wages” for purposes of the Massachusetts Wage Act. As a result, employees may not bring Wage Act claims for non-payment or late payment of retention bonuses.
Background
In this case, the defendant company, which recently had merged with another company, entered into a retention bonus agreement with its senior director of finance. The stated purpose of the agreement was to provide an incentive for the employee to remain employed with the company during a “time of change and integration.” Under the agreement, the employee was eligible to earn a retention bonus of $15,000 in two equal installments on two separate “retention dates:” November 18, 2020 and February 18, 2021. To earn these bonus payments, the employee had to remain employed and in good standing through each retention date with no reductions in his regular work schedule.
The employee received the first retention bonus payment. In January 2021, however, the company informed him that his employment was going to be terminated on February 18, 2021 – the second retention date – as part of a reduction in force. He remained employed until then and the company paid him the second half of the retention bonus eight days later.
Even though the employee received the full amount of his retention bonus, he sued on the grounds that the payment was late. In his complaint, the employee claimed that...
“This has been one of the most difficult and traumatic periods of my life.” It’s pretty wild how quick a lawyer threatening a lawsuit can bring a person, company, whatever, to heel. And Ian Battri...