By Nick Kotsopoulos
Telegram & Gazette Staff
Updated Dec 9, 2018 at 8:05 PM
WORCESTER – The city will include provisions against wage theft in future tax increment financing agreements for private development projects, City Manager Edward M. Augustus Jr. has informed the City Council.
The action is in response to a call by several councilors to strengthen the city’s current wage theft ordinance, where appropriate, to include stipulations for building permits.
While it has been determined that the city cannot legally impose such conditions on building permits, it can put them in tax deals for private projects.
“The goal is to secure compliance and eliminate the use of wage theft tactics by entities doing business with the city,” Mr. Augustus wrote in a report that goes before the City Council Tuesday night.
In 2016, the City Council approved a wage-theft ordinance that prohibits the city from awarding contracts to companies that have been found guilty of not complying with federal and state wage laws, including failing to pay their employees, and failing to pay prevailing wage, minimum wage and overtime.
Other types of wage theft include denial of legal benefits such as industrial accident and health insurance, improper classification of employees and violations involving payment of taxes, unemployment compensation, Social Security and income tax withholding.
Under the Worcester ordinance, successful bidders for city contracts have to provide a certification of compliance regarding payment of wages to employees.