Employment Law Case of the Week
On August 11, 2023, in Klauber v. VMWare, Inc., __ F.4th __ , No. 22-1417 (1st Cir. 2023), the First Circuit Court of Appeals held that an employer's use of provision in its compensation plan that allowed it to modify commissions on certain large or atypical sales did not violate the Massacusetts Wage Act (M.G.L.c. 149, s. 148). In the commission plan commissions were only considered "earned" once, inter alia, a "Plan Reconciliation" had been completed by the employer in which it determined whether and how much to adjust commissions for "Exception Transactions", i.e., atypical transactions.
Updated on August 29, 2023
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