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Disposal Company To Pay $454,000 To Settle Violation Of Overtime Allegations

16 Apr, 2009 WorkersCompensation.com

                               
Boston, MA (CompNewsNetwork) - Attorney General Martha Coakley's Office has reached a settlement agreement with the Arizona-based trash disposal company BFI Transfer Systems of Massachusetts, LLC (BFI Transfer Systems) to settle claims that the company did not pay employees the prevailing wage rate or correct overtime rate for work performed at the Oak Bluffs/Tisbury Transfer Station on Martha's Vineyard.  BFI Transfer Systems has agreed to pay $404,500 in restitution to the affected employees, as well as a $50,000 penalty to the Commonwealth.  BFI Transfer Systems has already paid over $198,000 of the restitution to its workers.

In August 2007, the Attorney General's Office received complaints from employees of BFI Transfer Systems alleging they had not been paid properly for trash disposal work performed at the Oak Bluffs/Tisbury Transfer Station. Investigators from the Attorney General's Fair Labor Division discovered that from October 2005 through December 2007, BFI Transfer Systems had failed to pay prevailing wage and overtime to 14 employees.  BFI Transfer Systems cooperated with the Attorney General's Office throughout the investigation.

The Massachusetts Prevailing Wage Laws apply to certain types of public work construction projects and public service contracts in the state.  The Prevailing Wage Law creates a "level playing field" for contractors and subcontractors engaged in public works by standardizing the rate of pay the workers must receive.  A company's failure to pay prevailing wages can result in both civil and criminal penalties against the company and its owners.  Massachusetts law also requires that most hourly employees who work more than 40 hours in a week be paid one and one-half times their regular rate of pay for hours worked over 40.   For work for which a prevailing wage rate applies, overtime must be calculated based on the hourly prevailing wage. 

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