Overview
- The Massachusetts Supreme Judicial Court held on October 22, 2025, in Nunez v. Syncsort that retention bonuses tied to staying through specified dates and good standing are not wages under Mass. Gen. Laws ch. 149, § 148.
- The court reasoned that these payments are additional, contingent compensation not made solely in exchange for labor or services, placing them outside the statute’s protections.
- The case involved a $15,000 retention bonus payable in two equal installments on November 18, 2020 and February 18, 2021, with the second installment paid eight days after the employee’s termination.
- The District Court rejected the Wage Act claim, the Appellate Division affirmed, and the SJC affirmed summary judgment for the employer.
- The decision clarifies that employees cannot seek treble damages and fee-shifting under the Wage Act for such bonuses, and commentators advise employers to clearly document contingencies, retention dates, and eligibility terms.