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Grand jury indicts staffing firm, owner

September 24, 2009
Staffing Industry Analysts North American Daily News

A grand jury indicted a Worcester MA staffing firm and its owner on 66 counts of violating state wage and hour laws and committing insurance and tax fraud, the Massachusetts' Attorney General's office announced Wednesday.

The company was Labor Solutions, and its owner was Tam Vuong, 34, according to the office. The firm provided temporary workers to manufacturers in the Worcester County MA.

A number of Labor Solutions' workers received their pay in cash and were not paid Massachusetts' minimum wage or overtime, according to the office. In addition, many workers were charged $2 to $3 a day for transportation, reducing their pay below minimum wage.

Labor Solutions collected $20 million from client firms between 2004 and 2008 and paid $11 million in cash wages that were not reported to its workers compensation carrier or the Massachusetts Department of Revenue, the office reported.