Massachusetts Senate Bill S1148

Massachusetts 2023-2024 Regular Session

• Introduced: 2/16/23
• Refer: 2/16/23

Caption

Relative to wage theft

Impact

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.