2 minute read
Legal Corner
Construction & Public Contracts Group, Hinckley Allen, LLP Christopher Morog Partner Robert T. Ferguson Partner
On September 5, 2022, the Massachusetts Office of the Attorney General (the “AGO”) released its annual “Labor Day Report” detailing the Fair Labor Division’s ongoing efforts to “protect workers” over the past year. Once again, the construction industry features prominently in the Attorney General’s report.
The AGO reported that construction “continued to be a high priority” this year. In the spring of 2022, the AGO’s Fair Labor Division resumed its practice of making “unannounced” visits to construction sites to “engag[e] workers and employers about compliance with stage wage and hours laws.” The AGO will continue this practice in Fiscal Year 2023. In addition, the Commonwealth continues to raise awareness about “workforce participation goal requirements for women and workers of color on state and state-assisted construction projects.”
According to the AGO, the construction industry “topp[ed] the [Fair Labor] Division’s enforcement in both number of citations issued (217) and dollars assessed ($2.9 million).” Based on the report, the $2.9 million in construction industry assessments accounts for roughly 25% of all assessments across numerous industries, including manufacturing/food processing, retail/sales, transportation/delivery, and waste management, to name a few.
The AGO’s report included summaries of a few notable enforcement actions against construction companies. The AGO issued citations for alleged prevailing wage violations, failure to submit certified payroll records, and improper record-keeping, as well as overtime, earned sick time, and paystub violations. The AGO even noted that one contractor – now debarred – had previously failed to furnish records to the AGO despite multiple requests.
The AGO also highlighted the Commonwealth’s “Meal Break Law” which “provides workers with a right to at least a 30-minute unpaid meal break for each six hours worked in a calendar day.” The AGO’s Fair Labor
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Division noted that a Massachusetts waste hauling and disposal company paid more than $250,000 in restitution and penalties where it allegedly “deducted 30 minutes from drivers’ wages each day for meal breaks, without confirming that employees took such a break.”
These are only a few highlights. The AGO’s Fair Labor Division continues to actively investigate and “robust[ly]” enforce labor laws, particularly in the construction industry. According to its website, the Fair Labor Division “ensures workers are paid the wages they are owed and that businesses that play by the rules don’t get undercut by competitors who save costs at the expense of their workers.” Given the continued spotlight on the construction industry, it remains important for contractors to take proactive measures to ensure compliance with applicable requirements. n
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