Wage Theft Bill Is Back

Date: May 17, 2017

 As expected, an effort to pass wage theft legislation has been renewed this session.

Under the proposed bill (S 999/H 1033), the issuance of stop-work orders would be allowed until wage violations are corrected. Thus, the actions of a bad actor would affect the operations of law-abiding firms on a project. The attorney general’s office would also be allowed to bring wage theft cases to court for civil damages. In the effort to enhance the enforcement of wage laws, however, the legislation could also hold innocent businesses liable for wage theft by imposing vicarious liability on law-abiding companies for misclassification of employees and violations of wage and unemployment laws by others. Law-abiding employers could be fined for conducting business with someone who violates the law, whether or not the innocent employer is aware of the violations.

This legislation passed the Senate last year, but did not emerge from the House Ways and Means Committee for a vote.

NFIB/MA opposes this bill.

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