{"ID":53600,"name":"Massachusetts v. Morash","href":"https:\/\/api.oyez.org\/cases\/1988\/88-32","view_count":0,"docket_number":"88-32","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Massachusetts","second_party":"Richard N. Morash","timeline":[{"event":"Argued","dates":[604044000],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/36093"},{"event":"Decided","dates":[608878800],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/36094"},{"event":"Granted","dates":[591858000],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/53341"}],"lower_court":{"ID":42,"name":"Massachusetts Supreme Judicial Court","href":"https:\/\/api.oyez.org\/taxonomy\/term\/42"},"facts_of_the_case":"\u003Cp\u003EThe Commonwealth of Massachusetts (Massachusetts) sued Richard N. Morash, the president of the Yankee Bank for Finance and Savings (Bank). Massachusetts alleged that, by failing to compensate two terminated employees for vacation time they accrued but did not use, Morash violated the Massachusetts Payment of Wages Statute (Statute). Massachusetts alleged the statute was pre-empted by the Employee Retirement Income Security Act of 1974 (ERISA). ERISA requires an employer to pay a discharged employee his full wages, including holiday or vacation payments, on date of discharge. The trial judge certified the preemption question to the Massachusetts Appeals Court. The Supreme Judicial Court of Massachusetts transferred the case to its docket on its own initiative and held that the policy constituted an employee welfare benefit plan and that the statute was pre-empted by ERISA.\u003C\/p\u003E\n","question":"\u003Cp\u003E(1) Does a company\u2019s policy of paying its discharged employees for their unused vacation time constitute an employee welfare benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 (ERISA)?\u003C\/p\u003E\n\u003Cp\u003E(2) Does ERISA\u2019s broad pre-emption provision foreclose a criminal action to enforce that policy?\u003C\/p\u003E\n\u003Cp\u003E\u00a0\u003C\/p\u003E\n","conclusion":"\u003Cp\u003ENo, no. Justice John Paul Stevens delivered the opinion of the unanimous Court which held that a policy of paying discharged employees for their unused vacation time does not constitute an employee welfare benefit plan within the meaning of ERISA, and that ERISA\u2019s provisions do not foreclose a criminal action to enforce that policy. The employment welfare benefit plan is not meant to relate to ordinary vacation pay, but rather to include vacation benefit funds that accumulate over a period of time. 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