By: Ashley Shook
May 16, 2022
BOSTON (WWLP) – A New York-based rail system company was issued a citation and will pay more than $220,000 for overtime and payroll violations on projects in Massachusetts.
According to the Massachusetts Attorney General’s Office, Railworks Track Systems, Inc. and its President Gene J. Cellini, will pay more than $220,000 in restitution and penalties to resolve allegations that it failed to pay the proper overtime rate to workers on public works projects in the Berkshires, on Cape Cod, and in Framingham, and failed to submit accurate certified payroll records, Attorney General Maura Healey announced.
Restitution will be provided for 84 employees that were not paid properly for five railroad improvement projects in Hyannis, Falmouth, Framingham, Great Barrington, Lee, Lenox, Pittsfield, Sheffield, and Stockbridge.
“Companies must pay their employees the wages they’ve earned and are legally entitled to,” said AG Healey. “We are pleased to have secured this relief for the more than 80 affected workers, and hope that this sends a message to employers that we hold them accountable if they do not properly compensate their workers.”
The Attorney General’s Office received a referral in 2020 from the Foundation for Fair Contracting of Massachusetts, alleging that Railworks Track Systems was improperly paying its employees. The investigation revealed the payroll records did not include employee addresses, and that the company claimed a type of fringe benefit that is not permitted under Massachusetts prevailing wage laws. The fringe amounts were paid, but the amounts did not include overtime.