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