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Construction firm must pay $2.4 million in IC case

August 03, 2016

Two Massachusetts companies must pay $2.4 million in overtime and liquidated damages to 478 employees as well as $262,900 in penalties for misclassifying workers as independent contractors, the US Department of Labor reported. It’s the largest such Fair Labor Standards Act wage recovery in the state since 2009.

The company ordered to pay is Force Corp., a construction company operating in Massachusetts, Connecticut and Maine, according to the Department of Labor. Also in the judgement is AB Construction Group, a firm the department said was created to supply Force with much of its labor. Force prepared and controlled the payroll and payment procedures for both companies.

In addition to the payments, the companies are also ordered to not evade FLSA responsibilities by misclassifying workers as independent contractors, keep accurate records and engage a consultant to create a payroll system that is compliant with the FLSA.

“The US Department of Labor is committed to rooting out misclassification and will take the enforcement actions necessary to achieve that goal, including injunctions to correct employers’ unlawful practices, collecting back pay and liquidated damages for the workers and assessing serious penalties,” said Carlos Matos, the Wage and Hour Division district director in Boston.