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A Massachusetts Superior Court decision from earlier this year serves as a poignant reminder to employers: the Massachusetts Wage Act (the Wage Act or the Act) may apply to employees who live and work out of state — so long as Massachusetts has the most significant relationship to the employment.
By way of background, the Wage Act, known for its strict requirements and potential treble damages for violations, is not limited by state borders. When deciding whether the Act applies to an out-of-state employee, courts consider several factors, including:
- The location of the employer's headquarters;
- Where the employee performed their work;
- The frequency and nature of the employee's interactions with the employer in Massachusetts;
- Whether another state has a more substantial connection to the work performed; and
- Any choice-of-law provision in the employment agreement.
In its May 2025 decision in Dubois v. Staples, the Massachusetts Superior Court took an expansive view of these requirements, holding that the Wage Act applied to an out-of-state remote employee — even though the employee:
- Lived and worked in Rhode Island;
- Used a Rhode Island address and phone number for work;
- Received wages in a Rhode Island bank account;
- Paid income taxes in Rhode Island;
- Claimed unemployment benefits in Rhode Island;
- Managed a sales territory in New York; and
- Earned the disputed bonus from a deal negotiated in New Jersey.
Despite these strong ties to other states, the court found the Wage Act applicable to this employee, focusing on the following set of Massachusetts ties:
- In the final months of employment, the employee began covering a Massachusetts territory;
- The employee regularly traveled to the company's Massachusetts office;
- The employer was headquartered in Massachusetts;
- Key decisions related to the disputed bonus were made in Massachusetts; and
- The employment agreement contained a Massachusetts choice-of-law provision.
Key Takeaway:
Even when an employee's connection to Massachusetts appears minimal, employers based in the Commonwealth must be mindful of potential Wage Act obligations. When managing remote or multi-state employees, employers should consult with legal counsel to assess their risk and ensure compliance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
