Dixon v. City of Malden
464 Mass. 446
Mass.2013Background
- Malden city paid unused vacation time to Dixon after termination via ongoing salary payments, not as vacation pay on discharge, with a final paystub showing 50 days of vacation time remaining.
- Dixon, director of a city-owned nursing home since 1983, was effectively held in a holdover capacity after 1996 and had a vested right to vacation days accrued.
- Termination occurred March 20, 2007; a successor was appointed to begin March 20, 2007; city approved continued salary and benefits until June 29, 2007.
- City ordinance § 8.9(5) withheld vacation pay for employees terminated for fault, creating a potential improper forfeiture of earned vacation under Wage Act.
- Dixon filed a Wage Act claim under G. L. c. 149, §§ 148, 150, alleging failure to pay earned vacation time on discharge and seeking damages, costs, and fees.
- Trial court concluded the city’s post-termination compensation exceeded Dixon’s vacation entitlement (mitigating damages) and denied treble damages, costs, and fees; opinion reverses on remand.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Can after-the-fact salary payments offset unpaid vacation under the Wage Act? | Dixon: payments do not substitute for earned vacation time and must be paid as wages on discharge. | City: continued salary and benefits mitigated Dixon's damages for unpaid vacation. | Gratuitous after-the-fact payments do not substitute for earned vacation. |
| Did the city’s failure to pay vacation on discharge amount to a Wage Act violation seeking damages? | Dixon incurred damages for unpaid vacation time due at discharge. | City contends no damages or offset due to mitigation. | Yes, breach constitutes damages; entitlement to recovery under §150. |
| Whether treble damages may be awarded for this Wage Act violation. | Dixon seeks treble damages for outrageous conduct or reckless indifference. | City argues no outrageous conduct; no treble damages should apply. | Treble damages not awarded given circumstances not outrageous. |
| What awards are proper for costs and attorney’s fees? | Dixon entitled to costs and reasonable attorney’s fees under §150. | City disputed entitlement to fees. | Vacate judgment to award vacation pay plus costs and attorney’s fees. |
Key Cases Cited
- Electronic Data Sys. Corp. v. Attorney Gen., 454 Mass. 63 (2009) (vacation payments due under an employment agreement must be paid as wages)
- Electronic Data Sys. Corp. v. Attorney Gen. (No. 2), 440 Mass. 1020 (2003) (unpaid vacation time constitutes wages payable on separation)
- Wiedmann v. The Bradford Group, Inc., 444 Mass. 698 (2005) (damages for Wage Act violations; the act imposes strict liability)
- Somers v. Converged Access, Inc., 454 Mass. 582 (2009) (strict liability; remedies for Wage Act violations)
- Goodrow v. Lane Bryant, Inc., 432 Mass. 165 (2000) (treble damages framework for Wage Act violations)
- Dartt v. Browing-Ferris Indus., Inc., 427 Mass. 1 (1998) (treble damages standard and discretion)
- Rosnov v. Molloy, 460 Mass. 474 (2011) (retroactivity of statutory amendments; relief standards)