Company Violated MA State's Prevailing Wage and Overtime Laws

Boston, MA (CompNewsNetwork) - Attorney General Martha Coakley's Office has issued a civil citation against a Franklin sheet metal company and its owner for unintentionally violating the Massachusetts Prevailing Wage and Overtime Laws.  Sarah Farren, 45, of Wrentham, and her company, Custom Metal Systems, Ltd., were ordered to pay $42,507 in restitution to the affected employees, as well as a $4,600 fine for unintentionally failing to pay the proper prevailing wage. In addition, Farren and Custom Metal Systems must pay $567.96 in restitution and $550 in penalties for unintentionally failing to pay overtime to one employee.

In August 2008, the Attorney General's Fair Labor Division received complaints from two employees of Custom Metal Systems which alleged the company had failed to pay the proper prevailing wage rate and failed to pay overtime for sheet metal work performed at the Ralph Small Elementary School project in Fall River.  Investigators conducted an audit of the company's certified and general payroll records and discovered that the company had misclassified fourteen employees as laborers rather than sheet metal workers for work performed from October 2007 through September 2008 at the Ralph Small Elementary School, and also the Slade Elementary School public works projects, both located in Fall River.

The Prevailing Wage Laws apply to all construction work performed on public works projects in Massachusetts. The Prevailing Wage Laws allow all contractors bidding on public works projects to enjoy a "level playing field" by standardizing the rate of pay the workers will earn. A company's failure to pay its employees the prevailing wage for work performed at a public construction site can result in both civil and criminal penalties against the company and its owner. 

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