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In the case of Poa v. Stamford Hospital, a surgeon filed suit against a hospital and a university, alleging in count four that salary continuation payments provided for in his employment agreement with the hospital constituted "wages" under Connecticut law and policy and the hospital’s refusal to make said payments was a violation of Connecticut law. The hospital filed a motion to strike count four, arguing contractual damages were not "wages." Connecticut law defines wages as compensation for labor or services rendered by an employee, whether the amount is determined on a time, task, piece, commission or other basis of calculation. Wages are payment for services on a weekly, daily or hourly basis or by the piece.

The surgeon entered into a written employment agreement with the hospital and university, including what was termed a "Primary Agreement." Pursuant to the terms of the "Primary Agreement," the surgeon's employment was to continue through July 31, 2012, unless either party terminated the agreement before that date. The surgeon alleged in the event his employment was terminated without "cause" prior to July 31, 2012, the hospital expressly agreed to continue to pay his salary through the end of the agreement. The hospital argued the salary continuation payments were not wages, but were more properly considered as liquidated damages. The definition of wages under Connecticut law expressly left the determination of the wage to the employer-employee agreement. Whether compensation was considered a wage and the method of calculating the amount of wages were derived from the employment agreement. Given the remedial nature of Connecticut law, the broad statutory definition and judicial interpretation of what constituted wages, coupled with the surgeon’s allegations, the court concluded the surgeon pleaded a valid cause of action for the wrongful withholding of wages. The hospital’s motion to strike the fourth count was denied.

If you feel you would like to explore your employment law options, contact the experienced employment law attorneys today at 203-221-3100, or by email at JMaya@mayalaw.com. We have the experience and knowledge you need at this critical juncture. We serve clients in both New York and Connecticut including New Canaan, Bridgeport, White Plains, and Darien.

Source: Poa v. Stamford Hosp., 2010 Conn. Super. LEXIS 1649 (Conn. Super. Ct. May 10, 2010)