Takeaways

• In Nunez v. Syncsort Inc., the court determined a bonus conditioned on remaining employed until a specified date does not fall within the definition of a “wage” under the Massachusetts Wage Act requiring immediate payment upon discharge.
• Unlike wages for labor or services performed, bonuses operate as conditional incentives intended to encourage employees to remain.
• Employers structuring incentive programs need to consider precise contractual language in their retention bonus agreements.

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Article

Employers offering retention bonuses gained welcome clarity when the Massachusetts Supreme Judicial Court, the state’s highest court, held in Nunez v. Syncsort Inc., 496 Mass. 706 (Oct. 22, 2025), that a bonus conditioned on remaining employed until a specified date does not fall within the definition of a “wage” under the Massachusetts Wage Act.

Carlos Nunez agreed to a retention arrangement after his position was reduced to part-time. Under that agreement, he would receive two payments of $7,500 if he continued working through Nov. 18, 2020, and Feb. 18, 2021, while maintaining full hours and good standing. Nunez satisfied these conditions, and the employer issued the second payment eight days after his termination. He asserted a claim under the Massachusetts Wage Act, which requires immediate payment of earned wages upon discharge.

Court’s Analysis, Holding

The court affirmed judgment for the employer, concluding that retention bonuses do not constitute...

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