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2 | 2 | | HOUSE DOCKET, NO. 2429 FILED ON: 1/19/2023 |
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3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 1709 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | Tram T. Nguyen |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act to further protect employees through a private right of action. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Tram T. Nguyen18th Essex1/19/2023 1 of 5 |
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16 | 16 | | HOUSE DOCKET, NO. 2429 FILED ON: 1/19/2023 |
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17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 1709 |
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18 | 18 | | By Representative Nguyen of Andover, a petition (accompanied by bill, House, No. 1709) of |
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19 | 19 | | Tram T. Nguyen for legislation to further protect employees through a private right of action. |
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20 | 20 | | The Judiciary. |
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21 | 21 | | The Commonwealth of Massachusetts |
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22 | 22 | | _______________ |
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23 | 23 | | In the One Hundred and Ninety-Third General Court |
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24 | 24 | | (2023-2024) |
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25 | 25 | | _______________ |
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26 | 26 | | An Act to further protect employees through a private right of action. |
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27 | 27 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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28 | 28 | | of the same, as follows: |
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29 | 29 | | 1 SECTION 1. Chapter 149 of the General Laws, as appearing in the 2020 official edition, |
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30 | 30 | | 2is hereby amended by adding the following section:- |
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31 | 31 | | 3 Section 150D: Private Attorney General Action |
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32 | 32 | | 4 Definitions, for this section 150D: |
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33 | 33 | | 5 “Interested Party” means any one or more of the following: 1. Any non-profit |
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34 | 34 | | 6organization that advocates for employee rights and protections; or 2. Any labor organization |
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35 | 35 | | 7which has as members, or is authorized to represent, employees and which exists in whole or part |
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36 | 36 | | 8for the purposes of negotiating with employers concerning wages, hours, or terms and conditions |
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37 | 37 | | 9of employment of such employer’s employees; or 3. Any Affected Employee. |
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38 | 38 | | 10 “Wage Non-payment” means the failure to pay a wage owed to an Affected Employee in |
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39 | 39 | | 11violation of any of the following statutes or contract provision: sections 27, 27F-H, 148, 148A, 2 of 5 |
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40 | 40 | | 12148B, or 150 of the general laws at chapter 149; or section 1, 1A or 1B of the general laws at |
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41 | 41 | | 13chapter 151; or any contract provision that required the payment of wages. |
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42 | 42 | | 14 “Affected Employee” means any employee or former employee where such employee |
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43 | 43 | | 15remains due from an employer any Wage Non-payment whatsoever, regardless as to where or |
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44 | 44 | | 16the type of labor was performed. |
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45 | 45 | | 17 In addition to all common law, contract, or other remedies available at law, an Interested |
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46 | 46 | | 18Party alleging facts that show probable cause that an employer has engaged in or caused a Wage |
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47 | 47 | | 19Non-payment shall have standing and be entitled to bring an action in the name of and on behalf |
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48 | 48 | | 20of the Commonwealth and the public, for the use and benefit of same, against such employer to |
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49 | 49 | | 21recover damages and penalties stated in this section. |
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50 | 50 | | 22 A civil action filed under this section shall be deemed a private attorney general action. |
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51 | 51 | | 23 The representative nature of such an action on behalf of the Commonwealth is not |
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52 | 52 | | 24waivable and shall not be deemed a class action, so long as there is at least a common question of |
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53 | 53 | | 25law or fact among at least two Affected Employees. Regardless as to whether any Affected |
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54 | 54 | | 26Employee’s claim must be arbitrated, the representative action on behalf of the Commonwealth |
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55 | 55 | | 27cannot be waived or compelled to arbitration. Further, the Interested Party bringing such |
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56 | 56 | | 28representative claim shall not have to wait for an arbitration decision or award before proceeding |
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57 | 57 | | 29in court under this section. |
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58 | 58 | | 30 The Interested Party filing an action under this section shall provide a copy of the |
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59 | 59 | | 31complaint for the purposes of notice to the attorney general, within 10 business days of the filing. |
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60 | 60 | | 32If the Interested Party prevails in the action, the court shall award treble the Wage Non-payment |
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61 | 61 | | 33damages, as liquidated damages, to any Affected Employee who has, following a court approved 3 of 5 |
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62 | 62 | | 34notice of same, responded to the court within 90 calendar days, affirming an interest in a |
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63 | 63 | | 35recovery, which notice shall be interpreted liberally to encourage Affected Employees to respond |
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64 | 64 | | 36and affirm such an interest. |
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65 | 65 | | 37 In addition, the Interested Party may also bring on behalf of the Commonwealth a claim |
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66 | 66 | | 38for injunctive and declaratory relief. An Interested Party that prevails in any action filed under |
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67 | 67 | | 39this section shall be awarded the costs of the litigation and reasonable attorney fees. |
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68 | 68 | | 40 A twenty percent surcharge tax on the total amount awarded by the court, including on |
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69 | 69 | | 41attorney fees, in addition to other usual income taxes due, on this recovery shall be paid into a |
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70 | 70 | | 42wage enforcement fund established by the attorney general. Such fund shall be used by the |
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71 | 71 | | 43attorney general to advance payment pending an action under this chapter and upon the attorney |
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72 | 72 | | 44general’s sole and exclusive discretion, to Affected Employees showing urgent need to obtain |
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73 | 73 | | 45unpaid wages to pay housing, heat, or food costs. |
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74 | 74 | | 46 In addition, the Interested Party who prevails under this section shall be entitled to |
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75 | 75 | | 47recover for the Commonwealth penalties, and Wage Non-payments as restitution incurred by |
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76 | 76 | | 48each other Affected Employee who did not respond affirming an interest, as follows: For each |
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77 | 77 | | 49violation of law, the court shall order the defendant employer to pay into the wage enforcement |
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78 | 78 | | 50fund (i) a penalty in the amount of $50 per violation per pay-period for each unresponsive |
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79 | 79 | | 51Affected Employee; and (ii) an amount, payable into the wage enforcement fund, equal to single |
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80 | 80 | | 52Wage Non-payment damages, as restitution, incurred for all Wage Non-payments that the |
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81 | 81 | | 53defendant employer should have paid to each Affected Employee who did not respond timely to |
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82 | 82 | | 54a court approved notice affirming an interest in a recovery; the attorney general shall hold in |
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83 | 83 | | 55escrow such amounts until the original statute of limitation period applicable against the 4 of 5 |
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84 | 84 | | 56defendant employer to expire on such restitution obtained in the event the Affective Employee |
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85 | 85 | | 57reconsiders, or is located, and seeks the restitution. But, after such limitations period has expired |
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86 | 86 | | 58with no such employee claim, the amount shall escheat to the wage enforcement fund. A |
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87 | 87 | | 59defendant employer ordered to pay into the wage enforcement fund as single Wage-Nonpayment |
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88 | 88 | | 60damages restitution incurred for labor performed by an Affected Employee who failed to affirm |
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89 | 89 | | 61an interest in a recovery shall be entitled to a set-off of such amount paid against a future Wage |
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90 | 90 | | 62Non-payment or other wage action filed by or on behalf of such Affected Employee, but no set- |
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91 | 91 | | 63off shall apply to the $50 per pay period penalty. |
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92 | 92 | | 64 An action filed under this section shall be filed within limitation period of the Wage Non- |
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93 | 93 | | 65payment at issue, except that where a Wage Non-payment also includes a violation of contract |
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94 | 94 | | 66the Interested Party shall be a third-party beneficiary of the contract, including any public |
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95 | 95 | | 67procurement contract, and recovery applicable to that portion of the action shall include amounts |
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96 | 96 | | 68due within the limitations period set forth under section 2 of the general laws at chapter 260; for |
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97 | 97 | | 69such contract action filed beyond the limitation period of the Wage Non-payment at issue |
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98 | 98 | | 70liquidated damages shall not be awarded unless the contract recites otherwise and the court may |
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99 | 99 | | 71award fees for such contract provision portion of the action in accord with the contract or its |
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100 | 100 | | 72discretion. |
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101 | 101 | | 73 On the trial no defense for failure to pay as required, other than the attachment of wages |
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102 | 102 | | 74by trustee process or a valid assignment thereof or a valid set-off against the same, or the absence |
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103 | 103 | | 75of the employee from his regular place of labor at the time of payment, or an actual tender to |
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104 | 104 | | 76such employee at the time of payment of the wages so earned by him, shall be valid. The |
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105 | 105 | | 77defendant shall not set up as a defense a payment of wages made or offered after the action under |
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106 | 106 | | 78this section has been filed. 5 of 5 |
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107 | 107 | | 79 The superior court shall have jurisdiction to hear an action filed under this section |
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108 | 108 | | 80regardless as to the amount in controversy. Any provision in this section found to be |
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109 | 109 | | 81unenforceable or invalid shall not affect other provisions in this section which shall remain valid |
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110 | 110 | | 82and enforceable. |
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111 | 111 | | 83 As a matter of right the attorney general may intervene as a plaintiff at any time, by |
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112 | 112 | | 84notice of same filed with the court or may file an appearance to be served all pleadings and |
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113 | 113 | | 85discovery for monitoring. In the event that she intervenes, the attorney general shall thenceforth |
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114 | 114 | | 86represent the Commonwealth as plaintiff, not the Interested Party. The Interested Party shall |
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115 | 115 | | 87retain party status, if it so chooses, for purposes that may include and not be limited to providing |
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116 | 116 | | 88opportunity to the Interested Party to raise its interests or concerns including regarding any |
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117 | 117 | | 89settlement proposed or to recover, if appropriate, its reasonable costs and fees incurred. The |
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118 | 118 | | 90attorney general shall not settle the matter with the defendant without the participation in all |
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119 | 119 | | 91settlement communications with the Interested Party who retained party status and without first |
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120 | 120 | | 92obtaining such Interested Party’s informed consent which shall not be reasonably withheld. |
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121 | 121 | | 93 Nothing in this section shall be deemed as an exclusive remedy and this section shall not |
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122 | 122 | | 94affect the rights of the attorney general or any other person to pursue additional or other remedies |
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123 | 123 | | 95available by way of other laws or available actions. |
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