The Effect of the Tipped Minimum Wage on Employees in the U.S. Restaurant Industry

Understanding Late Pay Laws in Massachusetts

In Massachusetts, employers must pay their employees their final wages in full on the date of the employee’s discharge.  In Massachusetts, an employee’s “final wages” includes the cash value of his or her accrued but unused vacation time. Employers who pay their employees wages after the date of discharge (even if one day late) are liable for triple damages plus attorney’s fees and court costs.   Employers are liable for penalty damages even if they pay your full wages before you file a lawsuit.  For instance, if your employer fired you on a Friday after you had worked 40 hours at $20.00 per hour, and you had 40 hours of accrued vacation, but did not pay you until the following week, the employer would owe you $1,600.00 for your late paid wages and an additional $1,600.00 for your late paid vacation, as well as your attorney’s fees. 

Late Payment of Final Wages: Connecticut Law Overview

                  In Connecticut, employers must pay their employees their final wages in full on the next business day following the termination. Employers who fail to do so may be liable for “double damages” and attorney’s fees if it can be shown that the failure to pay wages in a timely fashion was not in “good faith.”  Unlike, Massachusetts, Connecticut employers do not have to pay you the cash value of your accrued but unused vacation time unless they agree to pay them by written policy.

Many employers fail to pay out the wages of their employees upon termination on the date of termination as a matter of policy.  Employers who do so may be subject to class action lawsuits.