The bill is set to significantly impact state laws regarding wage enforcement. It aims to ensure compliance among construction industry employers by allowing for treble damages in cases of wage non-payment. Moreover, a twenty percent surcharge on awarded sums will go into a wage enforcement fund, which will be used to support wage law compliance efforts by the attorney general, educating both employers and employees about their rights and obligations. This provision is expected to create more awareness and a stronger deterrent against wage theft in the sector.
Summary
Bill S1148, known as the Act Relative to Wage Theft, is aimed at combating wage theft within the construction industry in Massachusetts. The legislation creates a new section 150D in chapter 149 of the general laws, allowing any interested party, such as impacted employees or labor organizations, to bring civil actions on behalf of the Commonwealth to recover unpaid wages owed to affected employees. This bill reflects growing concerns regarding the prevalence of wage non-payment, especially among smaller construction firms where employees often find it difficult to secure rightful pay due to power imbalances and the transient nature of construction work.
Contention
Notably, the bill also includes language that precludes arbitration as a means of resolving claims under this section, which may raise concerns among employers who prefer a different route for resolving disputes. The attorney general’s increased role in monitoring and acting on wage disputes—without the possibility of waiving the representative nature of these actions—could also be perceived as government overreach by some stakeholders. Critics might argue that this legislation complicates the existing legal landscape and could impose undue burdens on smaller employers in the construction segment who already face numerous challenges.
Wage theft prevention and use of responsible contractors when the Minnesota Finance Agency provides financial assistance for development of multiunit residential housing requirement
Providing for the regulation of home construction contracts and for the registration of certain home builders; prohibiting certain acts; providing for the offense of home construction fraud and for penalties; establishing the Home Builder Guaranty Fund; and providing for claims against the fund and for notification of defective or faulty building material or product.
Providing for verification of construction contractors and for procedures for verification; establishing the Construction Contractor Verification Account; imposing penalties; and making an appropriation.
Providing for verification of construction contractors and for procedures for verification; establishing the Construction Contractor Verification Account; imposing penalties; and making an appropriation.
Providing for the registration of labor brokers; imposing duties on the Department of Labor and Industry and the Secretary of Labor and Industry; establishing the Labor Broker Registration Account; and imposing penalties.
Providing for the registration of labor brokers; imposing duties on the Department of Labor and Industry and the Secretary of Labor and Industry; establishing the Labor Broker Registration Account; and imposing penalties.