By: Christopher W. Morog and Robert T. Ferguson, Jr.

In September of 2021, the Massachusetts Office of the Attorney General (AG) issued its sixth-annual “Labor Day Report,” “on the office’s efforts to combat wage theft and other forms of worker exploitation.” As in previous years, the Construction Industry has been a primary target of enforcement actions, with more than $1.9 Million in penalties and restitution assessed against 115 employers in Fiscal Year 2021. The AG “continues to prioritize wage theft in the construction industry,” and is actively pursuing those in violation of the law.

But wage theft and worker exploitation are not the only issues of concern to the AG. The AG continues to investigate and enforce alleged violations of various other legal requirements, including environmental laws and regulations. For example, in December of 2021, the AG announced a settlement against two companies in connection with performance of alleged illegal asbestos work at various residences located in four Massachusetts municipalities.

The AG commenced an action against an asbestos abatement contractor, as well as an asbestos consulting company. According to the AG, the asbestos abatement contractor allegedly violated the Commonwealth’s clean air law and regulations when it failed to properly handle and remove asbestos-containing material, and failed to file proper notification of asbestos abatement work. The AG further alleged that the consulting company inspected the abatement contractor’s work, but submitted inaccurate documents and analyzed samples without the proper certification.

Ultimately, the two companies agreed to file consent judgments in Suffolk County Superior Court. The settlement required the abatement contractor to pay up to $80,000 in civil penalties, retrain employees, and provide Massachusetts Department of Environmental Protection (MassDEP) with additional notice of asbestos abatement work for an 18-month period. As for the consultant, the settlement required payment of up to $165,000 in penalties, retraining of employees, additional MassDEP requirements, and the “implement[ation of] a detailed document management system to ensure accurate documentation of its asbestos-related work in the future.” In the AG’s press release announcing the settlement, MassDEP commented that it has a “team of analysts, scientists, investigators and attorneys who are expert in, and dedicated to, enforcing the Commonwealth’s asbestos regulations.”

We often write about enforcement issues and compliance. But it is as important now as ever to remain vigilant when it comes to compliance with applicable laws and regulations. In a complex web of legal requirements covering various issues, construction contractors face numerous pitfalls every day. The reality is that suspicion of alleged violations of the law can trigger a costly government investigation or enforcement action. Adoption, implementation, and administration of a robust compliance and training program can be extremely helpful to contractors looking to manage the various risks of doing business in 2022 and beyond.