A Worcester Superior Court has ordered a 35-year-old man and his company to pay $500,000 in restitution after the man pled guilty to over 60 charges of committing workers’ compensation insurance fraud and violating Massachusetts wage and hour laws. He has also been ordered to serve five years probation.
Labor Solutions, Inc. reportedly provided temporary labor services to manufacturing facilities around Worcester County. The company was charged with Willful Failure to Pay Minimum Wage (13 counts), Willful Failure to Pay Overtime (6 counts), Workers’ Compensation Insurance Fraud (5 counts), and Willful Failure to Furnish Employment Records to the Attorney General (5 counts), among other charges.
According to investigators, the business cheated their workers’ comp insurance carrier out of at least an estimated $509,000 in unpaid insurance premiums. Attorney General Martha Coakley said she hopes the plea and resulting sentence will discourage other employers from breaking the law.
Source: Worcester Company and Owner Plead Guilty, Ordered to Pay $500,000 in Restitution, Boston.CityBizList.com, August 21, 2010
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