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Mui v. Massachusetts Port Authority
89 N.E.3d 460
Mass.
2018
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Background

  • Mui was a longtime Massachusetts Port Authority (Massport) employee who applied for retirement while disciplinary proceedings were pending; Massport subsequently discharged him but an arbitrator later ruled he had retired before the discharge.
  • Massport's policy pays departing employees a percentage of accrued, unused sick time upon separation, but denies that payment to employees terminated for cause and requires two years' service for eligibility.
  • Because of the pending disciplinary/grievance process, Massport delayed paying Mui the sick-pay amount until after the arbitrator ruled; payment was made more than a year after his effective retirement date.
  • Mui sued under the Massachusetts Wage Act (G. L. c. 149, §§ 148, 150), arguing sick-pay is a "wage" and so was required to be paid by the Act's time limits; Superior Court granted judgment on the pleadings for Mui.
  • The Supreme Judicial Court reviewed de novo whether the Wage Act's definition of "wages" includes accrued, unused sick-time payments and considered statutory text, precedent, and practical implications for employers.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether accrued, unused sick-time payments (Massport's sick pay) are "wages" under the Massachusetts Wage Act Mui: Sick-pay is compensation for work and thus qualifies as "wages" under the Act; late payment violates the Act's timing provisions Massport: Sick-pay is a contingent, conditional payment (like a bonus) not enumerated in §148; the Act expressly mentions vacation and holiday pay and commissions, but not sick pay Held: Sick-pay of this type is not a "wage" under the Wage Act; judgment for Mui vacated and Massport's motion for judgment on the pleadings should be allowed

Key Cases Cited

  • Electronic Data Sys. Corp. v. Attorney Gen., 454 Mass. 63 (2009) (Wage Act's purpose is to protect employees' right to wages)
  • Weems v. Citigroup, Inc., 453 Mass. 147 (2009) (discretionary/contingent bonuses not wages under the Wage Act)
  • Dartt v. Browning-Ferris Indus., Inc. (Mass.), 427 Mass. 1 (1998) (courts will not add language to a statute the Legislature omitted)
  • Boston Police Patrolmen's Ass'n, Inc. v. Boston, 435 Mass. 718 (2002) (tax-exempt deferred compensation not wages under the Act)
  • Prozinski v. Northeast Real Estate Servs., LLC, 59 Mass. App. Ct. 599 (2003) (severance pay contingent on separation circumstances not wages)
  • Water Dep't of Fairhaven v. Department of Envtl. Protection, 455 Mass. 740 (2010) (statutory interpretation begins with the statute's plain language)
  • Providence & Worcester R.R. v. Energy Facilities Siting Bd., 453 Mass. 135 (2009) (same)
  • Commonwealth v. Martin, 476 Mass. 72 (2016) (de novo review of statutory interpretation)
  • Commonwealth v. Morgan, 476 Mass. 768 (2017) (avoid statutory constructions that produce absurd results)
  • Commonwealth v. Traylor, 472 Mass. 260 (2015) (penal statutes construed strictly)
Read the full case

Case Details

Case Name: Mui v. Massachusetts Port Authority
Court Name: Massachusetts Supreme Judicial Court
Date Published: Jan 29, 2018
Citation: 89 N.E.3d 460
Docket Number: SJC 12296
Court Abbreviation: Mass.