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Column: Wage theft scourge is a massive bank robbery every day (MA)

By Frank Callahan/Guest Columnist
Posted Feb 23, 2020 at 6:18 PM

The Great Brink’s Robbery, which has been upheld as the most notorious theft in the history of Boston, happened 70 years ago last month.

The brazen daytime heist, in which 11 robbers broke in and stole $2.8 million (about $30 million in 2020 money) from the Brink’s security company in the North End on Jan. 17, 1950, was at the time the largest robbery in U.S. history and dubbed “the crime of the century.” The crime prompted changes to the way companies approached security for both employees and assets. Police, politicians and the public were all focused on making sure lessons were learned and improvements were implemented.

Unfortunately, decision makers today haven’t been acting with the same degree of urgency to an equally onerous theft in our backyard. Wage theft – the practice of stealing money earned by workers – is a $700 million annual problem in Massachusetts. That’s almost $2 million a day being stolen out of the pockets of hardworking men and women, all Massachusetts taxpayers.

It is hurting the workers, who struggle from paycheck to paycheck. It hurts communities, which see its core small businesses suffer because residents have less spending power. And it hurts the entire commonwealth, whose economy suffers, leaving less revenue for crucial services like public safety, education and transportation.

Wage theft may not be as shocking as the Brink’s job, in which gang members picked locks, bound and gagged workers and dispersed into the night. Rather, today’s crooks are more likely to be wearing suits and looking their victims right in the eye while reaching around and picking the wallet from their back pocket. They’re unscrupulous contractors and subcontractors who promise to pay carpenters, pipefitters, sheet metal workers, custodians and countless other laborers agreed-upon wages and then short-change them after the work has already been done.

Frequently, there is little recourse. Maura Healey, the Massachusetts attorney general, has committed to cracking down on wage theft in the commonwealth. It’s not fair to ask Healey and her staff to take on this fight with one hand tied behind their backs.
Thankfully, there is a potential fix. There are two wage theft bills pending before the Legislature on Beacon Hill that would take this scourge head on.

Massachusetts’ Building Trades unions are urging lawmakers to pass legislation to provide Healey with greater enforcement authority. That includes enabling her office to penalize lead contractors for wage theft violations committed by their subcontractors. It would also empower the Attorney General’s office to shut down work sites until the violations are corrected.

And this legislation would pay for itself. More enforcement will lead to more recovery. In Fiscal Year 2019, the AG’s office recovered $5.8 million in restitution for these hardworking men and women – less than 1 percent of what was stolen. It stands to reason that more enforcement will return more money.

There are some champions in the Legislature who have recognized the importance of combating wage theft. Sen. Sal DiDomenico of Everett and Rep. Dan Donohue of Worcester have sponsored bills to battle wage theft and lent their support to ensuring the hardworking people of Massachusetts get paid the money they earn. Both of these bills have more than half of the Legislature signed on as co-sponsors.

Seven decades after the Brink’s robbery, people still recall not only the crime but the response to it to make sure it doesn’t happen again. That’s what we should be doing on the wage theft front, as well.

Frank Callahan is the president of the Massachusetts. Building Trades Council.

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In Major Wage Theft Case, Ipswich Construction Company Cited $580,000 for Violating State Wage Laws (MA)

Office of Attorney General Maura Healey – 2/28/2019

BOSTON – An Ipswich construction company and its owners have been cited $580,611 in restitution and penalties for violations of state wage and hour laws, Attorney General Maura Healey announced today.

The AG’s Office has issued six citations against ERA Equipment LLC and its owners, Kristen and Angelo Ciardiello, for a range of wage theft violations including failing to pay overtime and the prevailing wage. 

“Our investigation showed that this construction company stole hundreds of thousands of dollars from its workers,” said AG Healey. “Wage theft is a serious offense in Massachusetts and we will continue to take action when needed.”

The AG’s Office began its investigation in September 2017 after receiving a report alleging the company was not paying the proper prevailing wage. The investigation revealed that none of the company’s 13 employees received overtime pay when working more than forty hours in a week. Four employees were also not paid the appropriate prevailing wage rate while working on projects in the towns of Littleton, Scituate, and Wellesley, sometimes receiving less than half the prevailing wage rate required by law.

The investigation also revealed that the company failed to include some employees in the company’s payroll records, inaccurately reported the employees’ hours of work to avoid paying them overtime and kept inadequate and inconsistent payroll records.

The AG’s Office previously brought enforcement action against ERA and the Ciardiellos for nonpayment of wages, prevailing wage, and payroll records violations, including issuing citations that Angelo Ciardiello and his company, ERA Disposal LLC d/b/a ERA Equipment LLC, paid in 2015 for failing to pay five employees for one day of snow removal work.

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Nearly $10 million in fines, penalties issued against Massachusetts employers accused of wage theft in 2018 (MA)

Updated Sep 4; Posted Sep 4
By Kristin LaFratta

In Massachusetts, state officials found $9.6 million in restitution and penalties against businesses and employers who stole wages and exploited workers.

Attorney General Maura Healey released a 2018 Labor Day report this week that explores the findings of wage theft and other means of exploiting workers. Investigations were performed by the AG’s Fair Labor Division, or those who enforce wage laws and the fair bidding of construction projects.

The report revealed wage theft and labor violations occurred across industries, and many by contractors based outside of Massachusetts. In fiscal year 2018, Fair Labor conducted 247 “field visits” across Massachusetts to investigate unfair pay practices, which found both civil and criminal violations in various businesses.

Healey said her office chose to prioritize wage theft in the construction industry last fiscal year, which resulted in nearly $1.5 million in penalties and restitution, according to the report. In that time Fair Labor issued citations or other assessments against 61 different employers in the construction industry.

Methuen’s E.J. Paving Company, Florida-based contractor Southern Road and Bridge, LLC and J. Donlon & Sons Inc., which worked on a public works project in Medford, were among the “notable cases” listed in the report, all of which failed to pay workers properly in overtime pay or minimum wage.

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AG orders Methuen paving company pay restitution for wage theft (MA)

By Zoe Mathews (zmathews@eagletribune.com)
Jul 20 2018

BOSTON – A Methuen paving contractor and its president have been cited $172,554 in restitution and penalties for violating the Massachusetts overtime law for work performed on various public works projects across the state, Attorney General Maura Healey announced Friday.

“State prevailing wage laws ensure that companies working on public works projects do not cut corners to gain an unfair competitive edge,” said Healey in a press release on Friday. “This company cheated its workers out of overtime pay and with this action by my office, will now pay them what they are owed.”

The AG’s Fair Labor Division began an investigation into EJ Paving and its president, Thomas Evangelista, after receiving a complaint from an employee alleging he was not paid overtime for all hours worked in excess of 40.

The investigation revealed the company paid overtime to its employees after they had worked in excess of 45 hours during a week, though the law requires employees be paid time and a half after working more than 40 hours a week.

The investigation also revealed that when employees worked on both private and public works projects during the same week, EJ Paving failed to account for the different hourly rates of pay when overtime was calculated.

The AG’s office issued one citation for failure to pay overtime, which EJ Paving has paid in full, according to the release.

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