LIMITED LIABILITY COMPANIES MAY NOT BE COVERED UNDER THE WAGE ACT

By Timothy K. Cutler

 

A Massachusetts Superior Court (trial court) recently found that due to the wording of the Wage Act, corporations are covered by the Act but limited liability companies, along with their officers, directors and managers, are not covered.  According to the court, because the legislature used the word “corporation” and not entity, only corporations are covered because corporations are specifically defined by statute.  

If this view survives, then limited liability companies, as well as their officers, directors and managers will not be covered by the Act (automatic treble damages and attorneys’ fees) until such time that the legislature broadens the scope of the Act.