Massachusetts AG Announces Settlement With Worcester Company For Failing To Pay Workers

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August 17, 2007 -- BOSTON – Massachusetts Attorney General Martha Coakley has reached a settlement with a Worcester industrial insulation company and its owner for failing to pay two employees the prevailing wage rate. Daniel Valdez, of Worcester, the owner of Val Industrial Insulation Co., was ordered to pay approximately $32,000 to the affected workers. Additionally, Val Industrial will pay over $5,500 in civil penalties. The settlement agreement also debars Val Industrial from bidding on any new public works contracts for one year.

In June, the Attorney General's Office conducted a routine site inspection at the Brookside Elementary School Renovations and Additions Project, a public works project in Milford, MA. After reviewing records maintained at the site, investigators determined that Val Industrial had failed to pay the prevailing wage to one of its employees working at the Brookside project. After conducting further investigation, the Attorney General's Office performed an audit of certified and general payroll records of Val Industrial and determined that the company had failed to pay two employees the prevailing wage at various other public works projects in the Commonwealth from 2005 through 2007.

The Prevailing Wage Law applies to all construction work performed on public works projects in Massachusetts. The Prevailing Wage Law creates a "level playing field" for contractors bidding on public works projects by standardizing the rate of pay the workers will earn. A company's failure to pay its employees the prevailing wage for work performed at a public construction site can result in both civil and criminal penalties against the company and its owner.

The case was handled by Assistant Attorney General Miranda Jones and Inspector James Kelley of Attorney General Martha Coakley's Fair Labor Division.

Source: Massachusetts Attorney General