Employer paid $720K two years late and still dodged the penalty

The first six payments arrived on time. Then the money stopped. 

NCB blamed cash flow problems. Twelve bonus installments went unpaid for up to two years. In July 2017, NCB paid $660,000 in a lump sum covering all but one outstanding installment, plus 6% statutory interest. The final $60,000 followed in October 2017, again with interest. 

Every dollar had landed. But the former CEO was not finished. 

In February 2019 – more than a year after his last payment – the executive sued NCB under the WPCL, seeking $180,000 in penalty damages. That figure was 25% of the $720,000 in late payments, a penalty the WPCL imposes when wages go unpaid for more than 30 days without good reason. He also sought attorneys’ fees. 

A trial court awarded him $60,000 in penalties. An appeals court upheld that decision 5-4, with the full bench split on whether the WPCL lets employees chase penalties after wages have been paid in full.