According to a report from Watertown News, a settlement has been reached in a prevailing wage claim. A contractor on a government project has agreed to resolve wage and hour enforcement action taken by the Massachusetts Office of the Attorney General. Within this blog post, our Massachusetts wage and hour law attorney provides a more detailed overview of the agreement and explains the key points workers should know about prevailing wage laws.

Wage and Hour Settlement: Prevailing Wage Violation By a Contractor

On October 17th, 2024, the Massachusetts Office of the Attorney General officially published a settlement agreement with a contractor that violated the Commonwealth’s prevailing wage regulations. The enforcement action was taken against a company called Avatar Construction Corporation—based in Watertown, MA—and its owner, Nazar Vincent. Among other things, state regulators alleged violations of the Massachusetts False Claims Act (MFCA). The lawsuit accused Avatar and its subcontractor, Gonza Construction, Inc., of underpaying workers on five municipal projects.

Those projects were located in several local municipalities, including Cambridge, Lawrence, Saugus, and Watertown. The contractors—the primary and its subcontractor—collectively submitted 68 violative payroll forms. These forms falsely certified compliance with the Massachusetts Prevailing Wage Law. However, regulators determined that in reality workers were underpaid. As a result of the settlement, Avatar has paid $320,000 to the CommonwealthȔwith about $172,000 earmarked as restitution for the affected workers.

What is a Prevailing Wage?

Massachusetts has a wide range of wage and hour regulations in place to protect workers. The prevailing wage law is one of the lesser-known rules. Broadly defined, a prevailing wage is a rate of pay determined by government agencies to reflect the wages commonly paid to workers performing similar tasks in a specific area. It ensures that employees on public works projects are compensated fairly, based on local wage standards. By setting these wage rates, prevailing wage laws prevent contractors on government-funded projects from undercutting local labor markets.

An Overview of Prevailing Wage Laws for Massachusetts

In Massachusetts, prevailing wage laws are established under Massachusetts General Laws Chapter 149, Sections 26-27. These laws mandate that contractors and subcontractors working on public works projects pay their employees no less than the wage rates set by the Massachusetts Department of Labor Standards (DLS). The DLS determines these rates based on collective bargaining agreements and wage data within the construction industry.

It is important to emphasize that the Massachusetts prevailing wage laws apply to a broad spectrum of public projects—from construction to alteration to demolition to installation to repair to maintenance. Further, The prevailing wage rates cover various job classifications such as electricians, plumbers, carpenters, and laborers. These rates are almost always far higher than the Massachusetts minimum wage.

Enforcement: Contractors are required to submit certified payroll records to the awarding authority, demonstrating compliance with prevailing wage requirements. Non-compliance can result in penalties, as happened to Watertown-based contractor Avatar Construction Corporation.

Four Steps to Take If You Suspect a Prevailing Wage Violation

Do you believe that you were improperly underpaid a prevailing wage in violation of Massachusetts law? If you are a worker on a publicly-funded construction project or repair/maintenance project, it is a matter that should be considered and addressed. Here are four steps to take:

Know the Relevant Law: Prevailing wage laws are amongst the most complex wage and hour requirements. You need to know if you are covered by the law and what the prevailing wage for your specific position is given your location. Before taking any action, familiarize yourself with Massachusetts prevailing wage laws. Understanding the specific provisions, will help you determine if a violation has occurred. A wage and hour lawyer can help.
Document the Violation: Documentation forms the foundation of any wage and hour claims. You should collect as much evidence as possible to support your claim. Among other things, this includes keeping detailed records of your hours worked, pay stubs, employment contracts, job classifications, and any communications with your employer regarding your wages. You should also note specific dates, times, and descriptions of incidents related to the wage discrepancy. Thorough documentation can make the difference.
Report it to Your Employer: In some cases, the wage discrepancy might be due to an oversight or misunderstanding. Bring the issue to your employer’s attention and provide them with the information you have gathered. You have the right to report a violation of the Massachusetts prevailing wage law without facing any retribution from your employer. An experienced wage and hour lawyer can help you report the violation.
Consult With an Attorney: You do not have to take on a prevailing wage violation on your own. An experienced Massachusetts wage and hour lawyer can review your case, answer your most pressing questions, and help you develop a plan of action to secure the maximum compensation. Ultimately, a prevailing wage claim—like any wage and hour action—is about getting the full and fair wages that you rightfully earned under the law.

How Our Massachusetts Wage and Hour Lawyers Can Help

Wage and hour claims are complicated—especially so for prevailing wage cases. At Hayber, McKenna & Dinsmore, LLC, we invest the time, resources, and attention to detail that workers can rely on when it matters most. Our client testimonials and representative case results tell the story best. If you believe that you or your family member was denied the proper prevailing wage by a contractor (employer), professional guidance and support is just a phone call away.

Contact Us for a Confidential Consultation With a Massachusetts Wage and Hour Lawyer

At Hayber, McKenna & Dinsmore, LLC, our Massachusetts wage and hour attorneys go above and beyond to help workers find the best solutions for their cases. Were you underpaid in violation of prevailing wage regulations? We are here to help. Call us at (860) 522-8888 or contact us through our website for your fully private case review. With offices in Springfield and Northampton, our firm represents workers in wage and hour claims throughout all of Massachusetts.