This article was featured in the October 2023 edition of the Utility Contractors Association of New England, Inc.’s Construction Outlook.
In September, the Massachusetts Office of the Attorney General (the “AGO”) released its eighth annual “Labor Day Report” detailing the Fair Labor Division’s ongoing efforts to “protect workers . . . from exploitation” during Fiscal Year 2023. The AGO reported total assessments in excess of $13.4 Million in unpaid wages and penalties. As in prior years, the construction industry features prominently in the AGO’s report.
In a press release announcing the report, the AGO stated that its Fair Labor Division has “doubled down on efforts to combat wage theft, particularly in the construction industry, where marginalized workers are disproportionately impacted.” The AGO reported assisting nearly 600 workers in the construction industry alone and announced restitution and penalty assessments of nearly $1.8 Million affecting 125 construction employers. Cases involved independent contractor misclassification issues, prevailing wage law violations, failures to pay overtime, failures to provide paystubs, absence of earned sick time policies that comply with Massachusetts law, and failures to furnish certified or accurate payroll records.
Highlighting rights of immigrant workers, the AGO noted its earlier advisory (in May of 2023) “reminding the public that all workers, no matter their immigration status, are protected by the state’s labor and employment laws.” In addition, with respect to independent contractor misclassification, the AGO stated that “[i]nvestigating and citing employers for illegal misclassification of employees remains one of Fair Labor’s strategic enforcement priorities.” The AGO reported taking action against 29 employers in independent contractor misclassification cases for a total of more than $5.1 Million in restitution and penalties impacting 1,350 workers. In total, more than 75% of the AGO’s total citations and penalties in Fiscal Year 2023 related to the transportation/delivery, construction, and restaurant/hotel industries.
The AGO’s annual Labor Day Report underscores the continuous need for contractors to dedicate careful time and attention to compliance issues. The spotlight continues to shine on the construction industry when it comes to government investigations and compliance. Contractors must take proactive measures to ensure compliance with applicable requirements on a number of fronts, from general corporate hygiene issues, to worker health, safety, wage and hour issues, and employee training and discipline, to name a few. Contractors are urged to engage competent and experienced legal counsel to help navigate the numerous and varying types of compliance issues that contractors face in 2023 and beyond.
