Attorney General’s annual Labor Day Report: More than $11.8 million in restitution and penalties against employers on behalf of workers in Mass.

Posted by National Alliance for Fair Contracting on

MassLive.com – Published: Sep. 05, 2022
By Tristan Smith

Attorney General Maura Healey released her seventh annual Labor Day Report, a summary of the office’s efforts to combat wage theft and other forms of worker exploitation in Massachusetts. The report showed that during fiscal 2022 the office assessed more than $11.8 million in restitution and penalties against employers on behalf of commonwealth workers.

“This Labor Day, we honor the resiliency of Massachusetts workers whose perseverance throughout the COVID-19 pandemic has kept our communities and our economy going,” said AG Healey. “One of my top priorities is ensuring that workers from every industry are paid the wages they are entitled to and that they have access to the hard-fought workplace rights that our laws provide. We will continue to advocate for the rights of workers at the state and national level.”

The Labor Day Report details the actions of the AG’s Fair Labor Division in fiscal 2022, which runs from July 1, 2021 to June 30, 2022. During this fiscal year, the Fair Labor Division ordered employers to pay $7.5 million in restitution to employees and $4.2 million in penalties to the General Fund, according to the report.

More than 19,300 workers reportedly benefited from the AG’s enforcement actions.

In fiscal 2022, the Fair Labor Division continued its focus on combatting wage theft in the construction industry – where workers are often vulnerable to exploitation on the job, according to the report. In the construction industry alone, the division assessed more than $2.9 million in penalties and restitution and issued 217 citations against employers. In one case, the AG’s office cited a Wareham company and its owners for more than $1.2 million, including restitution for 41 employees, for prevailing wage violations and failing to submit certified payroll records, according to the report.

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AG Healey Secures Nearly $3 Million in Penalties and Back Wages Within the Construction Industry in Fiscal Year 2022

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FOR IMMEDIATE RELEASE: 8/22/2022
Office of Attorney General Maura Healey
The Attorney General’s Fair Labor Division

AG’s Fair Labor Division Cited 100 Construction Companies for Violating State Labor Laws, Securing Restitution for More Than 850 Workers

BOSTON — As part of an ongoing initiative to combat wage theft in the construction industry, Attorney General Maura Healey announced today that her office issued 216 citations against 100 construction companies for violating the state’s wage and hour and prevailing wage laws over fiscal year 2022. As a result of these enforcement actions, more than 853 workers will receive more than $1.7 million in back pay and the companies will pay over $1.1 million in fines.

“Our Fair Labor Division works hard to advocate for construction workers across Massachusetts who are often vulnerable to wage theft and other forms of exploitation on the job,” said AG Healey. “Through continued enforcement, outreach, and education, we are committed to ensuring a fair working environment in the construction industry and a level playing field for responsible employers.”

The violations in these cases, handled by the AG’s Fair Labor Division, include the failure to pay wages in a timely manner, to pay overtime, and to furnish records for inspection, as well as retaliation. For work performed on public construction projects, violations include failure to pay the prevailing wage, to submit true and accurate certified payroll records, and to register and pay apprentices appropriately.

Some of the 2022 enforcement actions include citations against the following construction companies:

  • Rochester Bituminous Products, Inc., and its owners, President, Thomas Russo, Manager, Albert Todesca, and Treasurer, Michael P. Todesca, were issued 25 citations totaling more than $1.2 million in restitution and penalties for prevailing wage violations and failing to submit certified payroll records. The violations occurred on various public projects, including projects for the City of Boston, Town of Mattapoisett, Boston Water & Sewer Commission, as well as Abington, Bridgewater, Canton, Plymouth, Sharon, and Weymouth.
  • Superior Carpentry, Inc., and its President, Fernando Barroso, and Vice President, Felipe Drumond, were issued five citations for over $540,000 in restitution and penalties for failure to pay prevailing wages and for submittal of false payroll records to awarding authorities on public projects at the Middleborough and Westport police stations.
  • Railworks Track Systems, Inc., will pay more than $220,000 in restitution and penalties for failing to pay the proper overtime rate to workers, failing to properly account for different hourly rates of pay earned by employees during the same work week, and failing to submit true and accurate payroll records for work performed on public works projects in Hyannis, Falmouth. Framingham, Great Barrington, Lee, Lenox, Pittsfield, Sheffield, and Stockbridge.
  • Gonza Construction Inc. was issued five citations totaling $143,000 in restitution and penalties for prevailing wage, record-keeping, earned sick time, and paystub violations on a public project in Stoughton.

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Wareham Paving Company Cited Over $1 Million for Not Paying Workers and Failing to Keep Payroll Records on Public Projects

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Jan. 19, 2022
FOR IMMEDIATE RELEASE:
Office of Attorney General Maura Healey
The Attorney General’s Fair Labor Division

BOSTON — A Wareham Company and its owners have been cited more than $1.2 million in restitution and penalties over allegations that they did not pay prevailing wages to employees and failed to furnish accurate payroll records, Attorney General Maura Healey announced.

Rochester Bituminous Products, Inc., its President, Thomas Russo, Manager, Albert Todesca, and Treasurer, Michael P. Todesca, were issued 25 citations by the AG’s Office for failing to pay prevailing wages to employees on various public projects including projects for the City of Boston, Town of Mattapoisett, and the Boston Water & Sewer Commission, and failure to furnish true and accurate payroll records to the AG’s Office, and failure to submit true and accurate certified payroll records to an awarding authority on a weekly basis for work performed to the above mentioned locations as well as Plymouth, Abington, Canton, Weymouth, Bridgewater, and Sharon. Through the citations, the AG’s Office is seeking penalties from Rochester Bituminous for its violations of state labor laws, and restitution for 22 employees it allegedly harmed.

“Companies have an obligation to pay their workers the wages they’ve earned,” said AG Healey. “We are issuing these citations to secure relief for workers who were cheated by this company’s illegal practices.”

In 2019, the AG’s Fair Labor Division began investigating whether Rochester Bituminous was paying its workers the proper prevailing wage for paving work done for the City of Boston. The division also received several complaints from past and present workers of the company, alleging that they had not been paid prevailing wages for work performed.

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Union-backed budget amendment would combat construction wage theft in Massachusetts (MA)

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By Shira Schoenberg
Posted Apr 24, 4:55 PM

A union-backed amendment expected to be included in the Massachusetts House budget would increase the attorney general’s ability to enforce wage and hour laws in the construction industry.

Rep. Dan Cullinane, D-Boston, introduced an amendment that would spend $500,000 to create a specialized unit in the attorney general’s office to investigate and enforce wage violations in the construction industry.

“This underground economy is real,” Cullinane said. “Bad companies are stealing wages from workers, bad companies are pocketing taxpayer dollars by falsifying payroll records.”

Historically, the construction industry has had frequent occurrences of wage theft.

Attorney General Maura Healey, in a February report, said her office issued 165 civil citations against 66 construction companies in 2018 for wage violations. These companies paid fines of more than $1.23 million and restitution of $1.47 million for 1,030 employees.

Wage theft can include things like failing to pay overtime, failing to pay the required wage for public projects or not accurately documenting how many hours someone works.

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Maryland SB 300 – Prevailing Wage Rates, Public Works Contracts and Suits by Employers (MD)

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March 28, 2019

This bill authorizes an employee under a public work contract who is paid less than the appropriate prevailing wage to sue to recover the difference in wages paid without first filing a complaint with the Commissioner of Labor and Industry. A determination by the commissioner that a contractor is required to make restitution does not preclude the employee from a private cause of action. A contractor and subcontractor are jointly and severally liable for any violation of the subcontractor’s obligations associated with civil actions (brought either by the commissioner or the employee).

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(See PDF of Bill)

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Toms River contractor faces prison for failing to pay workers prevailing wage (NJ)

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Michael L. Diamond, Asbury Park Press
Published 3:12 p.m. ET March 27, 2019

A Toms River construction contractor pleaded guilty Wednesday for not paying his employees prevailing wages for their work on a student housing project in Camden, the New Jersey Attorney General said.

The state recommended Albert Chwedczuk be sentenced to three years in prison. He also must pay up to $200,407 in restitution to his workers.

“This employer cheated his workers and hoarded public funds for his own enrichment,” Attorney General Gurbir S. Grewal said in a statement. “This case is a message to all employers that we will not tolerate contractors underpaying their workers and lying about it.”

Contractors working on government projects are required to pay employees prevailing wage, which includes both wages and fringe benefits based on collective bargaining agreements for a particular trade in the county where the work takes place.

Chwedczuk, 45, had been barred since 2014 from working on public contracts because of previous violations of the Prevailing Wage Act when he operated Ren Construction LLC and Real Construction LLC, authorities said.

They said he created a new business called Bella Group LLC to obtain a subcontract worth $400,000 to perform masonry work for the Cooper Camden Student Housing Project on South Broadway.

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

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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.

(See Article)

Feds reach settlement with Santee contractor to pay stiffed workers

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By Carl Prine
March 28, 2018

The U.S. Department of Labor announced Wednesday that investigators had reached a settlement with a Santee builder to repay back wages owed to the workers by a defunct subcontractor.

A & D General Contracting, Inc.. the prime contractor on a pair of federally funded projects for the Marine Corps, will compensate 16 workers $52,969 after El Cajon-based Amigos Design Build Landscapes failed to pay prevailing wages before declaring bankruptcy.

“The prime contractor in this case is stepping up to the plate and doing the right thing,” said Department of Labor spokesman Leo Kay during a telephone interview.

The case spun out of a probe by the agency’s Wage and Hour Division into Amigos Design’s work on two projects – a control gate at Marine Corps Recruit Depot in San Diego and Camp Pendleton’s Combat Training Tank and Instruction Facility, according to a Department of Labor press release.

Amigos Design filed for federal bankruptcy protection in late 2016, four years after the company was founded. In his Chapter 7 paperwork, company president Douglas Leal estimated $579,562 in debt to 113 creditors and only $482,182 in property to pay them.

…

Wage and Hour Division investigators determined that Amigos Design violated the Davis-Bacon and Related Acts by failing to pay required health and welfare rates to its employees.

The firm also incorrectly categorized some workers in jobs so that they would receive lower compensation rates than they deserved. Others were slotted as apprentices to pay them below the prevailing wage rates but they weren’t enrolled in any apprenticeship programs.

And on top of that, the company falsified its certified payroll reports, according to the Department of Labor.

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Wilmington-Based Electrical Company Cited $100K+ (DE)

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The AG’s Office zeroed in on the company, which dissolved in 2016.

 

By Mike Carraggi (Patch National Staff)
Updated August 9, 2017 12:31 am ET

WILMINGTON, MA – A Wilmington-based electrical company was cited more than $100,000 in restitution and penalties for not properly paying employees working to repair streetlights in Worcester, Attorney General Maura Healey announced today. …

Wilmington Wiring Corporation and owner John Garrett had three civil citations issued against it for failure to pay the prevailing wage, failure to furnish payroll records, and failure to furnish certified payroll records to the AG’s Office.

“Prevailing wage laws ensure workers are paid a real, living wage, and level the playing field for companies that play by the rules,” said Healey. “Workers, honest employers, and taxpayers lose when companies fail to follow wage and hour laws.”

WWC was based in Wilmington until it dissolved in May 2016. The AG’s Office began investigating the company in January of that year after an employee filed a complaint alleging he was not paid the prevailing wage rate for five years of work on a public project repairing streetlights in Worcester, the AG’s Office said. An investigation revealed six employees were not paid proper prevailing wage for the public works project; only WWC union employees were. WWC also then ignored the AG’s Fair Labor Divison’s payroll demands, the AG’s Office said.

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Justice for Irvine employees: Owner gets jail for shorting pay

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POSTED BY KEN STONE
OCTOBER 7, 2016

The owner of an Irvine-based heating and air conditioning company was sentenced Friday to a year in jail and five years of formal probation for failing to pay employees a prevailing wage on public works projects and pocketing the difference.

Shamseddin Hashemi-Mousavi, who was convicted exactly a year ago Friday, could have faced up to 26 years and eight months in prison.

Orange County Superior Court Judge Steven Bromberg prohibited him from working on any public works contracts through the end of his probation, according to Deputy District Attorney Donde McCament.

Hashemi-Mousavi placed $58,000 in a trust fund to be used to pay for restitution at a later date, McCament said. Bromberg will hold a hearing later to determine what restitution the defendant owes.

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