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SD 2707

FY25 AG Wage Enforcement Report

194th Legislature (2025-2026)

MA AG Wage Enforcement Report (FY25) summarizes 2024 construction actions: 179 citations, $1.1M restitution to 1,167 workers, $587k penalties, improving transparency.

Placed on file
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Bill Summary · SD 2707

Summary: SD 2707 — FY25 AG Wage Enforcement Report

Overview

SD 2707, titled FY25 AG Wage Enforcement Report, is a proposed Massachusetts bill that has been introduced and placed on file. The bill centers on the Attorney General’s Office, Fair Labor Division, and the reporting of wage enforcement actions and violation trends within the construction industry, consistent with the FY25 General Appropriations Act line item 0810-0045.

Purpose and Intent

  • To provide a formal, public-facing report detailing enforcement actions, trends, and outcomes related to wage and hour laws, misclassification, and prevailing wage within the construction sector.
  • To increase transparency around how wage enforcement funds (the Fair Labor Division’s line item) are utilized and the impact of enforcement efforts on workers and employers.

Key Provisions and Content

  • The bill conveys data from the Attorney General’s Fair Labor Division regarding enforcement in calendar year 2024, including:
    • Citations: 179 issued against 85 construction companies for wage/hour, misclassification, and prevailing wage violations.
    • Restitution: More than $1.1 million to 1,167 employees.
    • Penalties: $587,000 paid to the General Fund.
    • Industry impact: Construction was the second most cited industry, representing 16% of all enforcement actions.
  • Notable violations by amount:
    • Overtime pay: $404,857.08
    • Failure to make timely payment: $339,812.06
    • Failure to pay prevailing wage: $292,437.57
    • Misclassification as independent contractor: $165,750.00
  • Enforcement communications and partnership:
    • The Division issued 22 letters to state and local awarding authorities alerting them to prevailing wage violations on construction projects.
    • The Division of Capital Asset Management and Maintenance’s Certification Unit was copied on each letter.
  • Fraud and enforcement referrals:
    • The Division made 103 payroll fraud referrals to the Massachusetts Council on the Underground Economy and other agencies to address insurance fraud and tax evasion by unscrupulous employers.

Who/What Is Affected

  • Construction employers and contractors regulated under wage/hour, misclassification, and prevailing wage laws.
  • State and local awarding authorities involved in construction projects.
  • The Division of Capital Asset Management and Maintenance (via certification unit).
  • The Massachusetts Council on the Underground Economy and other investigative/antifraud agencies.
  • Employees entitled to wages, overtime, and prevailing wages who may receive restitution.
  • The General Fund, via penalties collected.

Timelines and Procedural Context

  • Data period: Calendar year 2024.
  • Report submitted: February 27, 2025.
  • Legislative action: Introduced March 3, 2025; status “Placed on file,” meaning the measure has been laid on the clerks’ desks and is not advancing in the current session unless reintroduced.

Impact and Significance

  • The bill consolidates and communicates enforcement outcomes, reinforcing oversight of wage compliance in construction.
  • Provides benchmarks for evaluating compliance and the effectiveness of wage enforcement efforts.
  • May inform future policy discussions around wage enforcement resources, contractor accountability, and transparency in state contracting.

For questions, the contact listed in the report is James McCarthy, Policy & Government Relations Division.

Compiled from official sources — confirm details with the bill’s official record.

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