MEMORANDUM AND ORDER
Plaintiff Christopher McAleer brings this action against his former employer alleging age discrimination and failure to pay sales commissions. He has also amended his complaint to bring common law claims for tortious interference with advantageous relations and breach of the covenant of good faith and fair dealing. Defendant Prudential Insurance Company of America moves to dismiss, arguing that the discrimination claims are time barred, that the Wage Act does not cover the commissions, and that the state law claims are duplicative and therefore preempted.
I will grant Prudential’s motion to dismiss the discrimination claims because McAleer did not file his complaint within the applicable statute of limitations. However, I will deny Prudential’s motion with respect McAleer’s claims regarding Prudential’s failure to pay sales commissions under the Wage Act and under the common law.
I. BACKGROUND
A. Facts
In 2002, Prudential acquired the company that employed Christopher McAleer, and McAleer became a Prudential employee. Prudential promoted McAleer to New England Division Sales Manager in 2005, responsible for territory ranging from Maine to Pennsylvania and West Virginia, but in 2006 Prudential demoted him to Regional Sales Manager responsible only for New Hampshire, Maine, and Massachusetts. He was 59 years old when Prudential demoted him and replaced him in the New England Division Sales Manager position with Eric Fauth, who was approximately 40-years-old.
In 2008 and 2009, McAleer’s sales figures started to drop. For the first time, he received evaluations reflecting that he failed to meet expectations. McAleer alleges that his diminished sales figured resulted predominantly from the fact that Prudential twice delayed approval of competitive annuity products for sale in Massachusetts — which regularly makes up 80-85% of Prudential’s total business in New
McAleer contends the delays in approving competitive products for sale in Massachusetts and his supervisors’ refusal to adjust his target goals were a scheme to force him out motivated by age discrimination. McAleer was 62 years old on the effective date of his termination. Both Allain and Fauth were approximately 43 years old.
The Human Resources division at Prudential investigated the claims of age discrimination, but informed McAleer on January 29, 2010 — five months after he first lodged his claim and one month after the effective date of his termination — that it found no evidence of discrimination.
B. Procedural History
Fauth issued a final warning letter regarding sales goals to McAleer on May 24, 2009, informing him that he had failed to meet his sales targets and that Prudential would terminate his employment if his sales figures did not improve within 30 days. McAleer first raised his concerns regarding age discrimination to Prudential’s Human Resources department about two weeks later, on June 8, 2009. Prudential informed McAleer of his termination by a letter, dated July 24, 2009. This was also his last day in the office. He was required to return his ID badge, security key card, and any company property, such as computer equipment. The letter noted that McAleer had accrued 58 days of unused paid time off, and therefore calculated that the effective date of his termination would be October 13, 2009. McAleer again notified the Human Resources department of his concerns regarding age discrimination about one week later, on August 1, 2009. After his last day in the office, and on the first day he began to be paid for his unused vacation days, McAleer requested and received short-term disability leave lasting 12 weeks, until October 17, 2009. Because McAleer did not spend his unused vacation time while on disability leave, this extended his effective termination date from October 13, 2009 until December 21, 2009. Prudential issued McAleer a new termination letter, superceding and replacing the previous letter, and memorializing the new effective termination date.
Near the end of his disability leave, on September 30, 2009, McAleer filed a complaint with the Fair Labor Division of the Massachusetts Attorney General’s Office demanding payment of commissions not
MCAD issued McAleer a right-to-sue letter just over one year later, on September 16, 2011. EEOC issued him a right-to-sue letter on November 3, 2011, one year and three months after McAleer filed his claim. Both McAleer and his counsel allege that neither received the letter from the EEOC until McAleer’s counsel contacted the EEOC on February 28, 2012 when the EEOC faxed a copy of the November 3, 2011 letter to McAleer’s counsel.
McAleer filed this action on May 9, 2012, 180 days after the EEOC issued its right-to-sue letter. That was 71 days after McAleer and his counsel received the right-to-sue letter by fax from the EEOC.
McAleer filed an Amended Complaint, now the operative pleading in this case, on October 1, 2012 and Prudential moved to dismiss the Amended Complaint on October 22, 2012.
II. STANDARD OF REVIEW
To survive a motion to dismiss, “a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal,
III. DISCUSSION
A. Statute of Limitations
Title VII requires plaintiffs to file discrimination claims with the EEOC “within one hundred and eighty days after the alleged unlawful employment practice occurred.” 42 U.S.C. § 2000e-5(e)(1). In Massachusetts, however, a plaintiff may file an action no later than 300 days from the date of the alleged discrimination. M.G.L. 151B § 5; see also Thomas v. Eastman Kodak Co.,
An employment discrimination claim accrues when the employee has unequivocal notice of some harm resulting from an allegedly discriminatory act. See Eastman Kodak,
The focus of the parties’ dispute is whether Prudential’s July 24, 2009 termination letter was unequivocal. Prudential
First and foremost, the existence of a second letter does not change when McAleer had notice of his termination. The Supreme Court has made clear that the statute of limitations begins to run at the time of the allegedly discriminatory decision, even if the plaintiffs employment continues, and the consequences of the allegedly discriminatory act — in this case termination — do not occur until later. Delaware State College v. Ricks,
Second, McAleer’s contention that a reasonable person in his position would have believed that Prudential had rescinded its decision to terminate him because he “remained employed for more than two additional months after the initial purported October 13, 2009 termination date” is not plausible. McAleer does not allege that he returned to the office, got a new ID, did any work for Prudential, or even had any discussions with Prudential about returning to some job there. Absent such allegations, the only reasonable interpretation is that Prudential merely adjusted the effective date of his termination to account for his short-term disability leave, not that Prudential had reconsidered his termination, and certainly not that it had rescinded his termination.
In fact, this case is an even clearer instance of unequivocal notice than either of the two cases McAleer attempts to distinguish: Ricks,
Finally, McAleer relies on a line of case-law that does not apply to the facts alleged in this case to support his erroneous con
In both Svensson and Wheatley, the courts found notice equivocal relying on the rule that “[w]hen ... the notice establishes a transition period during which the employee may seek other opportunities within the company prior to termination, or contains a promise to be reinstated to a specific position in the future, courts have deemed the notice equivocal.” Svensson,
His citation to Angeles-Sanchez is equally unavailing. That case involved an employee resignation resulting from an allegedly hostile and discriminatory employment atmosphere. The First Circuit held that
although Sanchez submitted her resignation on July 2, she reserved 19 days for it to take effect. This waiting period reasonably could indicate, as Sanchez avers, that if [her employer] ended the hostile atmosphere forcing her departure, she might rescind her resignation.
Angeles-Sanchez,
McAleer failed to file his claims with the EEOC within the limitations period, and I must therefore dismiss Counts I-V of the Amended Complaint (the discrimination
Because I find McAleer did not initiate this action within the required 300 day statute of limitations, I do not consider the alternative argument that his failure to sue within 90 days of receipt of a right-to-sue letter separately bars this action. Consequently, I also do not address McAleer’s equitable tolling argument based upon the dispute about the date of the actual receipt of the EEOC right-to-sue letter.
B. Massachusetts Wage Act
The . Massachusetts Wage Act was enacted to prevent an employer from unreasonably detaining an employee’s wages. See Am. Mut. Liab. Ins. Co. v. Comm’r of Labor & Indus.,
1. Definitely Determined
In order to be “definitely determined,” a commission must be “arithmetically determinable.” Wiedmann,
Prudential argues that because the plan affords it complete discretion for interpretation and payment calculation — including discretion to determine whether McAleer was eligible to receive commissions as an active employee in good standing — McAleer’s commissions cannot be arithmetically determinable. This argument fails.
Discretion prevents commissions from being definitely determined if the employer is under no obligation to award them. See Weems v. Citigroup Inc.,
Under the plan, Prudential retains discretion to determine eligibility, and to withhold payments from an employee it deems ineligible or an employee who has been terminated for cause, including poor performance. Prudential therefore argues that because it terminated McAleer and found him ineligible to receive commissions, his claims cannot be definitely determined. However, McAleer challenges the legality of his termination itself. If, indeed, his termination was the result of unlawful discrimination and not poor performance, Prudential may not avoid liability under the Wage Act merely by asserting retention of discretion not to award commissions.
However, the commission plan affords Prudential the power to “adjust the Sales Incentive to reflect the interruption of employment” for employees “who have been on a paid or unpaid leave of absence for any reason, including but not limited to short-term disability.” McAleer does not challenge the legality of his disability leave or in any way connect it with the alleged age discrimination. Therefore, Prudential arguably has the discretion to adjust commissions to account for the time McAleer was out on disability. The plan specifically provides, however, that “[o]ther Incentive Payments that will become due during a leave of absence will be paid as earned,” so Prudential does not have discretion to withhold commissions earned before McAleer began his disability leave, but that became due during his leave. Since the commissions at issue are alleged to have been earned before the period of disability, the retention of discretion on the basis of a later disability does not prevent the commissions in this case from being definitely determined.
2. Due and Payable
Commissions are due and payable when “any contingencies relating to their entitlement have occurred.” Sterling Research, Inc. v. Pietrobono, No. 02-40150,
When a compensation plan specifically sets out the contingencies an employee must meet to earn a commission, courts apply the terms of the plan, see e.g., Watch Hill Partners v. Barthel,
In Micciche, the court found commissions due and payable where the plaintiff closed the sales with a customer while he was still employed with the defendant company, but was terminated before the customer actually remitted payment. See Micciche,
Here, taking the facts in the light most favorable to the plaintiff, any sales McAleer closed while employed at Prudential may have been earned, and could have been due and payable, at the time of the closing, even if Prudential did not receive the premiums until after it terminated McAleer’s employment. McAleer does not claim that he should be paid for commissions “in his pipeline” but not closed before his termination. See Scalli v. Citizens Fin. Grp., Inc., No. 03-12413,
Prudential argues that it was under no obligation to pay commissions after July 24, 2009 because that was McAleer’s last day in the office, after which he was not an “active” employee, citing Perry v. New England Bus. Serv., Inc. for the proposition that non-“aetive” employees are not eligible for commission payments and therefore that no such payments could have been due and payable. This argument fails for at least three reasons.
First, and most fundamentally, Perry has absolutely no bearing on the Wage Act or its meaning. In Perry, the First Circuit addressed an ERISA case with no mention of — or implications for — the Massachusetts Wage Act, and it based its determination that the employee was not “active” on the definition of an “active” employee in the employee’s particular ERISA benefits plan, which is not similar to any language in the compensation plan at issue in this case. See Perry v. New England Bus. Serv., Inc.,
Second, Prudential’s argument that McAleer was not an active employee be
Finally, even if McAleer was not an active employee between July 24, 2009 and December 21, 2009, Prudential has not provided any justification to find that this precludes commissions from becoming due and payable if he earned them during the period of his indisputably active employment before July 24, 2009.
Therefore, I cannot find, as a matter of law, that McAleer’s Wage Act allegations fail to state a claim.
D. Exclusive Remedy
Prudential argues that McAleer’s common law claims are improper because they are entirely duplicative of his discrimination claim. It argues that under Massachusetts law, M.G.L. 151B constitutes the exclusive remedy for discrimination, requiring dismissal of any common law claims based on the same set of facts. In support of this proposition, Prudential identifies three cases. See Mouradian v. General Electric,
Mouradian and Melley refused to create a common law cause of action for wrongful dismissal of an at-will employee based on the public policy against age discrimination. Mouradian,
[i]t is of no significance that Mouradian’s claims are framed in terms of several different violations of express and implied contract and separate torts because they all have a common denominator — a supposed entitlement to recover on common law principles for alleged wrongful termination because of age.
Mouradian,
In Mouradian, the plaintiff conceded that he could not predicate his common law claims on any adverse action other than wrongful termination based on age discrimination. Mouradian,
Under the Fortune doctrine, an employer who terminates an employee “without good cause” in order to deprive him of commissions may violate the covenant of good faith and fair dealing. Krause v. UPS Supply Chain Solutions, Inc., No. 08-cv10237,
IV. CONCLUSION
For the foregoing reasons, I grant Defendant’s Motion to Dismiss the Amended Complaint (Dkt. 26) with prejudice with respect to Counts I-V, alleging age discrimination, but deny the motion with respect to Count VI, alleging violation of the Wage Act, Count VII alleging breach of the covenant of good faith and fair dealing, and Count VII, alleging tortious interference with advantageous relations.
Notes
. The Complaint alleges that Allain and Fauth were approximately 40 years old in 2006, making them approximately 43 in 2009.
. Although certain courts have imposed additional restrictions on the application of the Wage Act to commissions, see Cumpata v. Blue Cross Blue Shield of Mass.,
