The Massachusetts attorney general collaborated with the Joint Enforcement Task Force on the Underground Economy and Employee Misclassification to release a report emphasizing the magnitude of time and attendance violations in the state, according to the Worcester Business Journal. During a time period spanning between 2011 and 2012, the state reported it recovered more than $21 million in back wages, taxes, and violations resulting from misclassified workers and fraud perpetrated by businesses operating in the commonwealth.
The Boston Globe indicated employers were found negligent of labor laws due to the financial pressures many companies faced during the economic downturn. In addition to incorrectly classifying employees as independent contractors, business owners regularly failed to pay workers the federally mandated level for minimum wage and disregarded regulations governing insurance.
Joanne Goldstein, state secretary of Labor and Workforce Development, explained there were far too many enterprises engaged in this type of activity, as these violations affect all members of society. In fact, the Task Force found the accumulated financial toll assessed during the 18-month period was greater than the previous three years combined. While employers who willfully engage in this behavior are rightfully subject to penalties, these situations can be avoided when companies invest in employee tracking software that ensures compliance with federal regulations.
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