Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H1709 Compare Versions

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22 HOUSE DOCKET, NO. 2429 FILED ON: 1/19/2023
33 HOUSE . . . . . . . . . . . . . . . No. 1709
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Tram T. Nguyen
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act to further protect employees through a private right of action.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :DATE ADDED:Tram T. Nguyen18th Essex1/19/2023 1 of 5
1616 HOUSE DOCKET, NO. 2429 FILED ON: 1/19/2023
1717 HOUSE . . . . . . . . . . . . . . . No. 1709
1818 By Representative Nguyen of Andover, a petition (accompanied by bill, House, No. 1709) of
1919 Tram T. Nguyen for legislation to further protect employees through a private right of action.
2020 The Judiciary.
2121 The Commonwealth of Massachusetts
2222 _______________
2323 In the One Hundred and Ninety-Third General Court
2424 (2023-2024)
2525 _______________
2626 An Act to further protect employees through a private right of action.
2727 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
2828 of the same, as follows:
2929 1 SECTION 1. Chapter 149 of the General Laws, as appearing in the 2020 official edition,
3030 2is hereby amended by adding the following section:-
3131 3 Section 150D: Private Attorney General Action
3232 4 Definitions, for this section 150D:
3333 5 “Interested Party” means any one or more of the following: 1. Any non-profit
3434 6organization that advocates for employee rights and protections; or 2. Any labor organization
3535 7which has as members, or is authorized to represent, employees and which exists in whole or part
3636 8for the purposes of negotiating with employers concerning wages, hours, or terms and conditions
3737 9of employment of such employer’s employees; or 3. Any Affected Employee.
3838 10 “Wage Non-payment” means the failure to pay a wage owed to an Affected Employee in
3939 11violation of any of the following statutes or contract provision: sections 27, 27F-H, 148, 148A, 2 of 5
4040 12148B, or 150 of the general laws at chapter 149; or section 1, 1A or 1B of the general laws at
4141 13chapter 151; or any contract provision that required the payment of wages.
4242 14 “Affected Employee” means any employee or former employee where such employee
4343 15remains due from an employer any Wage Non-payment whatsoever, regardless as to where or
4444 16the type of labor was performed.
4545 17 In addition to all common law, contract, or other remedies available at law, an Interested
4646 18Party alleging facts that show probable cause that an employer has engaged in or caused a Wage
4747 19Non-payment shall have standing and be entitled to bring an action in the name of and on behalf
4848 20of the Commonwealth and the public, for the use and benefit of same, against such employer to
4949 21recover damages and penalties stated in this section.
5050 22 A civil action filed under this section shall be deemed a private attorney general action.
5151 23 The representative nature of such an action on behalf of the Commonwealth is not
5252 24waivable and shall not be deemed a class action, so long as there is at least a common question of
5353 25law or fact among at least two Affected Employees. Regardless as to whether any Affected
5454 26Employee’s claim must be arbitrated, the representative action on behalf of the Commonwealth
5555 27cannot be waived or compelled to arbitration. Further, the Interested Party bringing such
5656 28representative claim shall not have to wait for an arbitration decision or award before proceeding
5757 29in court under this section.
5858 30 The Interested Party filing an action under this section shall provide a copy of the
5959 31complaint for the purposes of notice to the attorney general, within 10 business days of the filing.
6060 32If the Interested Party prevails in the action, the court shall award treble the Wage Non-payment
6161 33damages, as liquidated damages, to any Affected Employee who has, following a court approved 3 of 5
6262 34notice of same, responded to the court within 90 calendar days, affirming an interest in a
6363 35recovery, which notice shall be interpreted liberally to encourage Affected Employees to respond
6464 36and affirm such an interest.
6565 37 In addition, the Interested Party may also bring on behalf of the Commonwealth a claim
6666 38for injunctive and declaratory relief. An Interested Party that prevails in any action filed under
6767 39this section shall be awarded the costs of the litigation and reasonable attorney fees.
6868 40 A twenty percent surcharge tax on the total amount awarded by the court, including on
6969 41attorney fees, in addition to other usual income taxes due, on this recovery shall be paid into a
7070 42wage enforcement fund established by the attorney general. Such fund shall be used by the
7171 43attorney general to advance payment pending an action under this chapter and upon the attorney
7272 44general’s sole and exclusive discretion, to Affected Employees showing urgent need to obtain
7373 45unpaid wages to pay housing, heat, or food costs.
7474 46 In addition, the Interested Party who prevails under this section shall be entitled to
7575 47recover for the Commonwealth penalties, and Wage Non-payments as restitution incurred by
7676 48each other Affected Employee who did not respond affirming an interest, as follows: For each
7777 49violation of law, the court shall order the defendant employer to pay into the wage enforcement
7878 50fund (i) a penalty in the amount of $50 per violation per pay-period for each unresponsive
7979 51Affected Employee; and (ii) an amount, payable into the wage enforcement fund, equal to single
8080 52Wage Non-payment damages, as restitution, incurred for all Wage Non-payments that the
8181 53defendant employer should have paid to each Affected Employee who did not respond timely to
8282 54a court approved notice affirming an interest in a recovery; the attorney general shall hold in
8383 55escrow such amounts until the original statute of limitation period applicable against the 4 of 5
8484 56defendant employer to expire on such restitution obtained in the event the Affective Employee
8585 57reconsiders, or is located, and seeks the restitution. But, after such limitations period has expired
8686 58with no such employee claim, the amount shall escheat to the wage enforcement fund. A
8787 59defendant employer ordered to pay into the wage enforcement fund as single Wage-Nonpayment
8888 60damages restitution incurred for labor performed by an Affected Employee who failed to affirm
8989 61an interest in a recovery shall be entitled to a set-off of such amount paid against a future Wage
9090 62Non-payment or other wage action filed by or on behalf of such Affected Employee, but no set-
9191 63off shall apply to the $50 per pay period penalty.
9292 64 An action filed under this section shall be filed within limitation period of the Wage Non-
9393 65payment at issue, except that where a Wage Non-payment also includes a violation of contract
9494 66the Interested Party shall be a third-party beneficiary of the contract, including any public
9595 67procurement contract, and recovery applicable to that portion of the action shall include amounts
9696 68due within the limitations period set forth under section 2 of the general laws at chapter 260; for
9797 69such contract action filed beyond the limitation period of the Wage Non-payment at issue
9898 70liquidated damages shall not be awarded unless the contract recites otherwise and the court may
9999 71award fees for such contract provision portion of the action in accord with the contract or its
100100 72discretion.
101101 73 On the trial no defense for failure to pay as required, other than the attachment of wages
102102 74by trustee process or a valid assignment thereof or a valid set-off against the same, or the absence
103103 75of the employee from his regular place of labor at the time of payment, or an actual tender to
104104 76such employee at the time of payment of the wages so earned by him, shall be valid. The
105105 77defendant shall not set up as a defense a payment of wages made or offered after the action under
106106 78this section has been filed. 5 of 5
107107 79 The superior court shall have jurisdiction to hear an action filed under this section
108108 80regardless as to the amount in controversy. Any provision in this section found to be
109109 81unenforceable or invalid shall not affect other provisions in this section which shall remain valid
110110 82and enforceable.
111111 83 As a matter of right the attorney general may intervene as a plaintiff at any time, by
112112 84notice of same filed with the court or may file an appearance to be served all pleadings and
113113 85discovery for monitoring. In the event that she intervenes, the attorney general shall thenceforth
114114 86represent the Commonwealth as plaintiff, not the Interested Party. The Interested Party shall
115115 87retain party status, if it so chooses, for purposes that may include and not be limited to providing
116116 88opportunity to the Interested Party to raise its interests or concerns including regarding any
117117 89settlement proposed or to recover, if appropriate, its reasonable costs and fees incurred. The
118118 90attorney general shall not settle the matter with the defendant without the participation in all
119119 91settlement communications with the Interested Party who retained party status and without first
120120 92obtaining such Interested Party’s informed consent which shall not be reasonably withheld.
121121 93 Nothing in this section shall be deemed as an exclusive remedy and this section shall not
122122 94affect the rights of the attorney general or any other person to pursue additional or other remedies
123123 95available by way of other laws or available actions.