Electrical Contractor Pays $48,000 for Violating State Prevailing Wage Laws

Electrical Contractor Pays $48,000 for Violating State Prevailing Wage Laws

Company Cited for Not Paying Workers the Required Rate and Violating Payroll Record Keeping Laws

A Boston electrical contracting company has paid more than $48,000 in restitution and penalties to settle claims it violated state prevailing wage laws, Attorney General Maura Healey announced this week.

Boston Electric & Telephone Corp. and its owner, Gerard Cardillo, of Easton, were cited for failing to pay the proper prevailing wage and failing to submit true and accurate certified payroll records with regard to six of their public works construction projects throughout Massachusetts. 

“Our state prevailing wage laws are intended to ensure there is a level playing field for contractors who work on our public schools, libraries, police stations and other public facilities,” AG Healey said. “We will continue to enforce these laws in order to protect workers’ rights and taxpayer dollars.”

The Attorney General’s Fair Labor Division began an investigation after the matter was referred by the Foundation for Fair Contracting of Massachusetts.

The investigation revealed that between April 17, 2012 and September 30, 2013, Boston Electric listed the incorrect occupational classification for its employees, paid some of its employees the incorrect prevailing wage rate, and claimed as credits against the prevailing wage fringe benefits that were either not provided to the employees or not allowed under Massachusetts law. As a result, the related company’s certified payroll records were inaccurate.

The six public works projects at issue include:

  • Bridgewater-Raynham Regional School District, Installation of Wiring and Connections for Computer Labs and Classroom Wiring
  • Town of Walpole, New Generator Upgrade at Walpole Library
  • Department of Mental Health, Retrofit Light Fixtures at Brockton Multi-Service Center 
  • Brockton Housing Authority, 65 Laureston Street, Electrical Work
  • Brockton Housing Authority, 103 Menlo Street, Electrical Work
  • School Committee of the City of Brockton, Electrical Services at Various Brockton Public Schools.                                                                                                                                                                                                                                                                                                                                                                                             

Boston Electric paid more than $48,000 in restitution and penalties to settle the allegations. Restitution will be paid to 13 current and former employees.

Under the Massachusetts Prevailing Wage Law, contractors and subcontractors engaged in public construction projects must pay their employees a special minimum wage, which is based on the occupational classification for the type of work the employees perform. Employers may take deductions from employees’ prevailing wages to pay for contributions to certain bona fide benefit plans, including retirement plans such as 401(k) plans.

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