Prevailing Wage - As Recent Cases Show, Non-compliance Penalties Are Severe

July 16, 2007

Kvmweb
As home improvement construction begins to slow, contractors may turn to public works projects or state funded contracts in order to keep working. But contractors must maintain strict compliance with the Massachusetts Prevailing Wage Program because offenses are extremely costly and offenders are likely to be caught.

In fact, each incident of employee wage underpayment or submission of false certification or employee classification is a separate and distinct violation of the law. For example, if a state project took 50 weeks to complete, and the employer submitted false certifications for each week, that would constitute a minimum of 50 violations that the Attorney General could prosecute.

The Massachusetts Prevailing Wage Program is run by the Massachusetts Division of Occupational Safety, which in turn issues prevailing wage schedules to cities, towns, counties, districts, authorities and agencies of the Commonwealth for construction projects and several other types of public work. The Office of the Attorney General is empowered with the authority to enforce the prevailing wage program and compliance with its rules and regulations.

While the notion of working on state contracts is enticing because a contractor will be surely be paid, the prevailing wage program can be a perilous journey if a contractor or employer does not comply with the state law. When awarded a public works project, a contractor must keep a record of all individuals employed on the project, including their name, address and occupational classification.

In addition, a contractor must keep records of...

You may read more at the link below.

by: Kevin V. Maltby, Esq.

BusinessWest
July 9, 2007

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