Treble Damages Bill Becomes Law Without Governor's Signature
April 22, 2008
Legislation that requires business owners to pay three times the wages owed to an employee in the event the employee is successful for suing for the unpaid wages became law without the Governor's signature on April 14th. The new law, Chapter 80 of the Acts of 2008, was hotly contested by business organizations, who opposed the measure, and organized labor, who supported it. The legislation was often linked as the companion piece to a recent law freezing an imminent unemployment rate hike. That rate hike was opposed by employee organizations and supported by the business community.
Originally eyed for simple passage, Governor Patrick had returned the legislation with an amendment which protected employers who acted in good faith. While the burden of proof remained on the employer, the business community supported the compromise since the amendment would have mirrored the existing federal Fair Labor Standards Act, whereby judges are given discretion to award lesser damages if employers were judged to have acted in good faith. The Legislature, however, resoundingly rejected the amendment.
As stated in his message accompanying the now law, Governor Deval Patrick wrote, "I am allowing the bill to become law because I support efforts to ensure that all workers are paid the wages and compensation legally owed to them. I am declining to sign the bill because I remain concerned that mandating treble damages in all cases, without any exception for employers who act in good faith, is unfairly punitive."
The law becomes effective after ninety days.
Originally eyed for simple passage, Governor Patrick had returned the legislation with an amendment which protected employers who acted in good faith. While the burden of proof remained on the employer, the business community supported the compromise since the amendment would have mirrored the existing federal Fair Labor Standards Act, whereby judges are given discretion to award lesser damages if employers were judged to have acted in good faith. The Legislature, however, resoundingly rejected the amendment.
As stated in his message accompanying the now law, Governor Deval Patrick wrote, "I am allowing the bill to become law because I support efforts to ensure that all workers are paid the wages and compensation legally owed to them. I am declining to sign the bill because I remain concerned that mandating treble damages in all cases, without any exception for employers who act in good faith, is unfairly punitive."
The law becomes effective after ninety days.






