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Governor Cracks Down on Lawbreaking Contractors
New measure targets employers that violate wage, tax and labor laws
Governor Deval Patrick wants to make Massachusetts a less hospitable place for contractors that knowingly break the law. The governor recently announced the creation of a new task force that will crack down on employers who skirt wage and labor laws or misclassify their workers as independent contractors.
Governor Patrick announced the new initiative at the annual convention of the Massachusetts Building and Construction Trades Council in March. The measure was prompted by growing complaints by contractors and worker advocates that employers who follow the laws are increasingly being squeezed out of business.
“This is another way of trying to make the playing field level for employers who respect the law,” says Karen Courtney, executive director of the Foundation for Fair Contracting of Massachusetts. “When contractors and other employers underpay their workers or pay them under the table, it hurts everybody: the employees, contractors that play by the rules and the economy of Massachusetts.”
Nine state agencies, including the Department of Labor, the Attorney General’s office and the Department of Revenue, will participate in the taskforce which will target industries where an “underground economy” has taken hold. In his remarks, Governor Patrick singled out construction as an industry in which law breaking is widespread. He cited a Harvard University study that found that construction contractors in Massachusetts routinely misclassify their workers, claiming that they are independent contractors rather than employees, to get out of paying benefits, payroll taxes and workers’ compensation.
“This is the first time that all of these agencies will be working together to make sure that our laws are enforced,” says Courtney. “It’s a real step forward for construction contractors that play by the rules.”
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