Tuesday, November 27, 2007

Triple Damages Under the Maryland Wage Payment and Collection Law

I frequently represent salespeople seeking unpaid commissions under the Maryland Wage Maryland Wage Payment and Collection Law. I have written about this area of the law many times.

One important part of the Maryland Wage Payment and Collection Law is the provision that allows the Court to award triple damages if the plaintiff successfully proves his or her claims. If the jury finds that an employer withheld earned commissions “not as a result of a bona fide dispute,” the jury may award the employee an amount not exceeding 3 times the wage. The Court may then also award reasonable counsel fees and other costs. Under the provision, a claim for $25,000 may represent $75,000 or more of potential liability.

What does a plaintiff need to prove to get triple damages?

4 comments:

UnpaidNow said...

What has been your experience in litigating non-payment of wages? Do you often see employees (plaintiffs) recovering legal fees? How often do you see jury awards of double or triple the unpaid wages?

Gil said...

I understand about exempt employees who terminate employment being able to collect accrued vacation time, my questions is with regard to exempt employees having acrued vacation time taken away at the end of the year as a part of the "use or loose" policy. I wouldn't mind this if I were compensated for the lost hours, but I feel like my company is punishing me for managaments inability to schedule so I am able to take time off...

James Edward Rubin said...

No case has yet challenged us or loose policies. After the Catapult decision there is a strong argument that if such policies result in a forfeiture of earned wages, they are unlawful under the Maryland Wage Payment and Collection Law. Again, there is no direct precedent on the issue. Because of that, you should consult with an attorney before taking any action.

James Edward Rubin said...

As for recovering legal fees, unpaid wages, and triple damages, of course, it all depends. It depends mostly on the strength of the plaintiff's case. Do you have the facts to prove you are owed wages? If you do, many other factors come into play, include the employer's solvency and resources.