2013 - Brett Fitzgerald · to set up shell subcontractor entities, running a portion of normal...

COMMONWEALTH OF MASSACHUSETTSDeval L. Patrick, GovernorRachel Kaprielian, Secretary, Executive Office of Labor and Workforce Development

2013

Annual Report

Joint Enforcement Task Force on the Underground Economy and Employee Misclassification

1-877-96-LABOR www.mass.gov/lwd/jtf

Report Submitted by: Heather Rowe,

Director, Joint Task Force

Joint Enforcement Task Force on the Underground Economy and Employee Misclassification Annual Report 2013

Heather Rowe, Director, Joint Enforcement Task Force Director, Department of Labor Standards

July, 2014

Dear Governor Patrick:

On behalf of the Joint Enforcement Task Force on the Underground Economy and Employee Misclassification, we are pleased to present you with the Task Force’s 2013 Annual Report.

In March of 2008, you signed Executive Order #499, establishing the Commonwealth’s Joint Enforcement Task Force on the Underground Economy and Employee Misclassification to address the challenge of employer fraud and worker misclassification. We are grateful for your leadership and vision in providing an opportunity for state agencies and constitutional offices to work collaboratively to ensure full compliance with the Commonwealth’s labor, licensing, and tax laws.

Now in our sixth year, the keys to the success of the Task Force remain agency cooperation, information and efficient use of resources to uncover and remediate violations as well as educate the public. Following these guiding principles, Task Force member agencies are now functioning as a collective force, working smarter in the fight to combat the underground economy.

We would like to take this opportunity to thank the designated representatives to the Task Force from our executive branch member agencies, as well as the Office of the Attorney General’s Fair Labor Division, the Office of the Treasurer’s Alcoholic Beverages Control Commission, Office of the Secretary of the Commonwealth, and the Insurance Fraud Bureau for their ongoing contributions. Through this partnership, we are helping to restore fairness in our economy by leveling the playing field for law-abiding employers and protecting workers and the interests of taxpayers in the Commonwealth.

This Annual Report details the works of the Task Force during 2013, including a breakdown of the funds recovered through the Task Force and summaries of each member agency’s participation in addressing Task Force referrals and violations. The report also describes current initiatives to increase the volume and impact of our joint enforcement.

The Task Force is committed to building on our efforts to date to deliver greater enforcement and education, and we look forward to continued success.

Sincerely,

Rachael Kaprielian,

Secretary, Executive Office of Labor and Workforce Development

THE COMMONWEALTH OF MASSACHUSETTSEXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT

JOINT ENFORCEMENT TASK FORCE ON THE UNDERGROUND ECONOMY

AND EMPLOYEE MISCLASSIFICATION

ONE ASHBURTON PLACE • 21st FLOOR • ATTENTION: JTF • BOSTON, MA 02108TEL: 877-96 LABOR (877-965-2267)

www.mass.gov/lwd/jtf

DEVAL L. PATRICKGOVERNOR

RACHEL KAPRIELIANSECRETARY

HEATHER ROWEDIRECTOR

JOINT ENFORCEMENT TASK FORCE

Letter to Governor Deval Patrick from Secretary Rachel Kaprielian and JTF Principal Members


Definitions of Abbreviations ABCC: Alcoholic Beverages Control Commission

AGO-FLD: OfficeoftheAttorneyGeneral-FairLaborDivision

COMMCORP: CommonwealthCorporation

DAS: DivisionofApprenticeStandards

DCAMM: DivisionofCapitalAssetManagementandMaintenance

DIA: DepartmentofIndustrialAccidents

DLS: DepartmentofLaborStandards

DOB: DivisionofBanks

DOR: DepartmentofRevenue

DPH: DepartmentofPublicHealth

DPL: DivisionofProfessionalLicensure

DPS: DepartmentofPublicSafety

DUA: DepartmentofUnemploymentAssistance

EOLWD: ExecutiveOfficeofLaborandWorkforceDevelopment

FSC: FairShareContribution

IFB: InsuranceFraudBureau

JTF: JointEnforcementTaskForceontheUnderground EconomyandEmployeeMisclassification

MCAD: MassachusettsCommissionAgainstDiscrimination

MOBD: MassachusettsOfficeofBusinessDevelopment

MORI: MassachusettsOfficeforRefugeesandImmigrants

NLRB: NationalLaborRelationsBoard

OSBE: OfficeofSmallBusinessandEntrepreneurship

SDO: SupplierDiversityOffice

SOC: OfficeoftheSecretaryoftheCommonwealth

USDOL: UnitedStatesDepartmentofLabor

Definitions of Abbreviations

Table of ContentsSection1:ExecutiveSummary Page1

Section2:RecoveredFunds Page4

Section3:NoteworthyAccomplishments Page6

Section4:ResultsofReferralsandCooperativeOversight Page12

Section5:2014GoalsandNewInitiatives Page16

AppendixA:ExecutiveOrder499 Page19

AppendixB:MemberAgencies Page22

AppendixC:MassachusettsandUnitedStatesDepartmentofLabor

CommonInterestAgreement Page27

Table of Contents


For further information please contact:Heather Rowe, Director, Joint Task ForceTelephone:617-626-6973Email:[email protected]

Melissa Butts,ProgramCoordinator,JointTaskForceTelephone:617-626-7103Email:[email protected]

Media contact: Ann Dufresne,DirectorofCommunications,EOLWDTelephone:617-626-7121Email:[email protected]


Executive SummaryInMarchof2008,GovernorDevalPatricksignedExecutiveOrder#499whichcreatedtheJointEnforcementTaskForceontheUndergroundEconomyandEmployeeMisclassification(JTForTaskForce),inordertocoordinatetheCommonwealth’seffortstoeliminateemployerfraudandemployeemisclassification.TheExecutiveOrdercallsfortheTaskForcememberagenciestoaddresstheundergroundeconomycooperativelybasedonthefollowingobjectives:

•educatebusinessownersandemployeesaboutapplicablerequirements;

•conductjoint,targetedinvestigations,andenforcementactions;

•protectthehealth,safety,wage,andbenefitrightsofworkers;

•restorecompetitiveequalityforlaw-abidingbusinesses;and

•preservetaxpayerdollarsandinsureproperpaymentoftaxes.

The Issue in MassachusettsThe“undergroundeconomy”isatermthatreferstothoseindividualsandbusinessesthatutilizeschemestoconcealormisrepresenttheiremployeepopulationtoavoidoneormoreoftheiremployerresponsibilitiesrelatedtobusinesslawsandregulatoryrequirements.Theundergroundeconomyencompassesotheractivitiessuchastaxevasion,payrollfraud,“under-the-table”work,andwagetheft.Theseactivitiesmayincludebutarenotlimitedto:payingwagesincash,skimmingsomeorallofthecashtakings,notpayingovertime,payingsub-minimumwages,chargingindividualsfortransportationorsuppliesessentialtothework,under-reportingemployees,misclassifyingemployeesasindependentcontractors,forcingemployeestosetupshellsubcontractorentities,runningaportionofnormalbusinessactivities“off-the-books,”andnotregisteringabusinesstoavoidtaxobligationsortoavoidobtainingthenecessarylicensesandinsurancepolicies.Someunscrupulousemployersmethodicallyoperatethiswayaspartoftheirbusinessmodel;otheremployersmaybeunawareoflegalrequirementsprescribedbyemploymentlawsorfeelthefinancialpressureorincentivetocutcornersintheirbusinessoperations.Forthoseemployerswhoknowinglybreakthelaws,thelureofgreaterprofits,lowercosts,andlessresponsibilityforworkersoftendrivestheirdecision-making.

Impact to Law-Abiding Businesses: Byreducingtheamountofmoneyexpendedinahostofcategorieslikewages,insurance,payrolltaxes,licenses,employeebenefits,materialsandtransportation,safetyequipment,andsafetyconditions,theseemployerscangainacompetitiveadvantageovercompaniesthatcomplywithbusinessandtaxlawsandregulations.Thisresultsinunfaircompetitioninthemarketplacebecauselaw-abidingbusinessesmustpaygreaterdirectcoststostayinbusinessandsubsidizepublicbenefitslikehealthcare,unemploymentcompensation,andworkers’compensationforthosecompaniesandindividualswhodonotplaybytherules.

Impact to Workers:Individualswhoperformworkforbusinessesthatdonotcomplywiththeselawsareoftenandsignificantlynegativelyaffected.Theseworkersareoftenpaidsub-minimumwage,receivenoovertime,andmayfacebarrierstoreceivingworkers’compensationandhealthcarecoverage,orbeentirelyineligibleforunemploymentinsurance(UI)orsocialsecuritybenefits.Theirworkingconditionsmaynotmeetsafety

Section 1: Executive Summary

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requirements,oftenputtingthemindanger.Theirvalueisdiminishedandtheirabilitytoeconomicallysustainthemselvesandtheirfamiliesisputinperil.Asaresult,otheremployersandtaxpayersarerequiredtoindirectlysubsidizetheseliabilities,intheformofworkers’compensationorUIcoveragethroughemployerfundedtrustfunds,healthcarethroughMassHealth,andotherstateandfederalsubsidies.

Impact to the Commonwealth: TheundergroundeconomyalsocompromisesthelegitimatebusinesscommunityandtheMassachusettseconomy.Legitimatebusinessesareeconomicallydisadvantagedwhencompetingwithothercompanieswhoareabletochargelessfortheirgoodsorservicesbecausetheyarenotlawabiding.Further,legitimatebusinessessubsidizethoseentitiesthatdonotfollowthelabor,licensing,andtaxlaws,astheirtaxdollarsunderwritethesystemsthatprovidebenefitstoeligibleworkerswhenthereisnoemployerofrecordtocharge.Taxpayersarealsoundulyburdenedasmanyworkerswhoaremisclassified,paidbelowminimumwage,orarewithoutemployer-providedbenefitsoftenutilizeexistingsocialsafetynets.Finally,thesheernumberofworkerswhonowfallintotheundergroundeconomyputsstressonthesocialsafetynetandtheunderlyingsocietalnormsthatweshare.

Massachusettscommunitiesarealsoadverselyimpactedbytheundergroundeconomy.Consumersdrivethedemandforlabor,goods,andservices,andmayunwittinglybecontributingtotheundergroundeconomythroughtheirbuyingchoices.Withoutrealizingit,consumersmaybepurchasinggoodsorcontractingforserviceswithentitiesthatarepartoftheundergroundeconomy.Inordertoincreaseawarenessandtolimittheavailabilityofgoodsandservicesproducedwithoutregardtothewageandhourlawsand/oraspartoftheundergroundeconomy,theUnitedStatesDepartmentofLabor(USDOL)hasbeguntorestricttheabilityofbusinessestosellthesegoodsthroughinterstatecommerce,throughwhatisknownasthe“HotGoods”provisionundertheFairLaborStandardsAct(FLSA).MassachusettshasbeensupportiveoftheUSDOL’seffortsandwasamajorpartnerintheirsuccessfuleffortstoaddressthisissueintheCommonwealth.Arecentcaseinvolvedacoordinatedresponseamonglocal,state,andfederalagenciesallutilizingtheirrespectiveauthoritytoaddressamulti-facetedexploitationofworkers.DOL’sconsentjudgmentagainstthebusinesswasenteredonApril3,2013,andprovidedforatotalof$305,500inbackwagesandliquidateddamagestofourteenaffectedemployees,aswellasacivilpenaltyof$10,267totheemployer.ThejudgmentalsoincludesapermanentinjunctionprohibitingfutureviolationsoftheFLSA’sminimumwage,overtime,recordkeeping,andhotgoodsprovisions.

Collectively,thecostsoftheundergroundeconomyarehigh.Operatingoutsidethelawallowsbusinessestohaveanunfairadvantagebyillegitimatelyloweringcosts,thereforeundercuttingtheircompetitors.Thistakesbusinessawayfromlaw-abidingcompaniesandtheiremployeeswhoaretryingtomakeanhonestliving.Thisrace-to-the-bottomhurtstheeconomy,legitimatebusinesses,andresultsintheerosionofthesocialfabric,economicstability,wagelevelsandworkingconditionsintheCommonwealth.

JTF ResultsDuringthisreportingperiod,calendaryear2013,asaresultofreferralsandcooperativeoversight,partneragenciesrecovered$15,658,226inwagerestitution,statetaxes,unemploymenttaxes,fines,andpenalties.1

Unlessotherwisenoted,allreferencestofundsrecoveredrepresentrecoveriesthroughthecooperativeefforts

1 PriorJTFreportsrepresentedactivitiesasfollows:

2009AnnualReport:March2008-March2009

2010AnnualReport:April2009-March2010

2011AnnualReport:April2010-March2011andApril2011-June2011

2012AnnualReport:July2011-December2011andJanuary2012-December2012

Beginningwiththe2013AnnualReport,activitieswillbereportedonacalendaryearcycle


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oftheJTFandrepresentmoniesaboveandbeyondwhatthememberagenciescollectedthroughtheirordinaryenforcementefforts.

Incalendaryear2013,theJTFreceived176complaintsthroughtheJTFreferralphonelineandonlinereferralservice,alongwithhundredsofcomplaintsmadedirectlytopartneragencies.TheworkoftheJTFagenciesresultedinover18,500compliancechecksandinvestigationsinthe12monthperiod.

2013 Accomplishments During2013,theJTFhadseveralnoteworthyaccomplishments:

•Expandedpartnershipswithstate,federal,andnon-governmentalstakeholdergroups;

•Invokedthe“HotGoods”provisionthroughalocal,state,andfederalinvestigationofanexploitativeagriculturalemployer;

•Exposedmisclassification,non-paymentofprevailingwages,andworkplaceviolationsonpublicconstructionjobsresultinginnumerousfines;

•ExceededDUA’scalendaryear2012recoveries;

•ParticipatedinawarenesseffortsregardinglabortraffickinginMassachusetts;

•Issuedmorethan60enforcementactionsbytheDepartmentofIndustrialAccidents(DIA)andtheDivisionofProfessionalLicensure(DPL)asaresultofaJTFoperationfocusedonthemassage/bodyworkindustry;

•PromotedtheworkoftheJTFbyparticipatinginover15presentationsandsharingofideaswithnationalandin-statestakeholders;

•AddressedcomplaintsaboutunlicensedpracticeperpetuatedbystaffingagenciesoperatingoutsidethelawthroughacoordinatedeffortbetweenDLSandDPL;

•Reapedover$10millionofrecoveredfundsfromapplicantsseekingliquorlicensesthroughlicensingcompliancechecksbetweenABCCandDUA;

•Institutedcross-agencytrainingforpartnerinvestigativeagenciesforthepurposeofincreasingefficiencyandpromotingbestpractices;and

•PromotedemployercompliancethroughJTF-sponsoredoutreachactivities.

2014 Goals and InitiativesDuring2014,theJTFlooksforwardtocontinuedsuccessbyfocusingonthefollowinggoals:

•ImplementingobjectivestoachievetheStrategicGoalssetbyEOLWDtomeetGovernorPatrick’sinitiativeforamoretransparentgovernmentundertheMassResultsplan;

•Releasingtheresultsoftheresearchstudyonemployeemisclassificationandtheundergroundeconomy inMassachusetts;

•Creatingeducationandoutreachmaterialforbusinessesandworkers;

•Continuingandexpandingcross-agencytrainingopportunities;

•ExpandingJTFpartnershipsoutsidetheExecutiveBranchAgencies;and

•Enhancingmulti-stateandfederalcooperationchannelstomaximizefutureengagements.


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Section 2: Recovered Funds

Recovered FundsRevenue Generated Through the JTF 2013

Period 5 total recoveries: $15,658,226To-Date Recoveries: $55,911,384 Forfurtherdetailsofeachpartneragencies’participation,pleaseseethe“PartnerAgencyEnforcementActivity”sectiononpages9–11.

Progression of recoveries for the JTF

Period 1 Period 2 Period 3 Period 4 Period 5

$1.4m

$15.6 million

$11 million

$6.5m

Section 2: Recovered Funds


$21million

$15million

$5.9m

Period 5 January 2013 - December 2013

Period 5 total recoveries

$15,658,226

DIA:$1,333,337

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Page 5Section 2: Recovered Funds

Period 5 Period 4 Period 3 Period 2 Period 1

January 2013 - December 2013

January 2012 - December 2012

July 2011 - 12/1/2011

April 2010 - June 2011

April 2009 - March 2010

March 2008 - March 2009

DUA UI Contribution:

$12,935,304 $12,712,702 $4,287,848 $2,365,237 $2,071,211 $737,439

DUA FSC1: $236,738 $276,439 $16,830 Number not Reported $188,788 $239,742

DOR: $728,697 $327,869 $835,178 $3,665,097 $1,568,166 $233,468

AGO: $405,000 $593,398 $272,567 $3,033,148 $788,690 $200,425

DIA2: 1,333,337 $1,433,371 $537,450 $2,167,311 $1,872,694 $24,750

IFB3: $100,000

DLS $3,650

DPL $15,500

Sub Total: $15,443,779 $5,949,873

Total: $15,658,226 $21,393,652 $10,930,933 $6,489,549 $1,439,024

1DUAFairShareContribution(FSC)Program,partofthestatehealthinsurancelegislation(Chapter58oftheActsof2006)enactedinAprilof2006,containsobligationsforMassachusetts’employerswhoemployeleven(11)ormorefull-timeequivalent(FTE)employees.EmployersmeetingthisminimumemploymentthresholdmustfileanFSCreport.Employerswitheleven(11)ormoreFTEemployeeswhodonotmakea“fairandreasonablecontribution”totheiremployees’healthinsurance,asdefinedinDivisionofHealthCareFinanceandPolicy(DHCFP)(nowCenterforHealthInformationandAnalysis)regulation(114.5CMR16.00),arerequiredtopayaper-employeeFSCtotheCommonwealthCareFund,payabletotheDepartmentofUnemploymentAssistance(DUA).Recoverieslistedarepaymentsmadeondelinquentaccountspriortothedissolution.ThisProgramwasrepealedinJulyof2013.

2DIAhasacomplementaryenforcementoperation,andcertainDIArecoveredfundsreportedinYears2,3,4,and5cameasaresultofthatoperation.TheDIAOfficeofInvestigations,whichworkswiththeJTFinvestigativeteam,isresponsibleforensuringthatallemployersoperatingintheCommonwealthcarryworkers’compensationinsuranceatalltimes,pursuanttoM.G.L.c.152,§25Aand§25C.AnyemployerthatisfoundtobeinviolationofthestatuteisservedwithaStopWorkOrder(SWO).TheSWOrequiresthebusinesstocloseimmediatelyuponserviceoftheSWOandcarriesafineof$100perdayuntiltheemployerpresentsproofofavalidpolicyandpaysthefine.TheemployermayalsoappealtheSWO,whichcarriesafineof$250adayandtheopportunitytocontinuebusinessactivitiesuntilthehearing.TheDIAhasassignedinvestigatorstocovercitiesandtownsintheCommonwealth.Theseinvestigatorsexaminebusinessesandorganizationsofeverysizeandindustrytoensurecompliancewiththelaw.

3IFBopened10workerscompensationpremiumavoidancecasesin2013asaresultofJTFreferralsandhasadditionalongoingcasesfrompreviousyears.Becauseofthenatureofthecasesandthelengthoftimeittakestoprosecutetherearenoreportablerecoveriesin2013.


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Section 3: Noteworthy Accomplishments

Noteworthy Accomplishments2013 Accomplishments JTF Expands Partnerships with State, Federal, and Stakeholder Groups In2013TheJTFdevelopednewrelationshipswithfouradditionalstateagencies,afederalagency,andanadditionalnon-governmentalstakeholdergroup.

State Agencies:

•SecretaryoftheCommonwealth’sOffice,CorporationsDivision(SOC)

•OperationalServicesDivision(OSD)

•MassachusettsOfficeofBusinessDevelopment(MOBD)

•DepartmentofPublicHealth(DPH)

Federal Agency:

•NationalLaborRelationsBoard(NLRB)

Stakeholder Group:

•CommunityLaborUnited(CLU)

AspartoftheexpansionoftheJTFpartnergroups,theJTFexpandeditscompliancecheckprocesstoinclude:

•WellnessTaxCreditProgramwithintheDepartmentofPublicHealth;

•DIASafetyGrants;

•CommonwealthCorporation’sWorkforceCompetitivenessTrustFundGrants;

•DepartmentofCareerServicesandCommonwealthCorporations’WorkforceTrainingFundsGrants;and

•MassachusettsOfficeofBusinessDevelopment’sEconomicDevelopmentIncentiveProgram.

BringingadditionalpartnersintotheJTFcouldmeanadditionalrevenuerecoverytotheCommonwealthandmoreillegalbusinesspracticesbeingthwarted.Additionalpartnersmaybehelpfultoenforcement,asitisnotuncommonforanunscrupulousbusinesstohavemultiplecomplianceissueswithmultiplegovernmentagencies.Themoreavenuesofcommunicationandcoordinationavailable,themorelikelywemaybetocurbillegalactivity.

Local, State, and Federal Investigation of Exploitative Agricultural Employer— Successful Use of the “Hot Goods” ProvisionInthesummerof2011whentheinvestigationbegan,theDepartmentofCareerServices(DCS),underEOLWD,investigatedacomplaintregardinganinjuredworkeratafarminWesternMassachusetts.DCS’sinvestigationledtotheinvolvementoftheMassachusettsDepartmentofPublicHealth,localhealthofficials,andtheUSDOLbringingactionsagainsttheemployer,ChangandSonsEnterprise,Inc.,whooperatestwofarmsinWhatelyandSouthDeerfield.Stateandlocalhealthdepartmentscondemnedandclosedtwofarmlaborcamps,where22workersandtheirfamilieswereliving,forfailuretomeetminimumsafetyandhealthstandardsandhousingcoderegulations.Inaddition,fiveotherfarmlaborcampsownedandoperatedbytheemployerwereinspected,


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citationswereissued,andimmediatecorrectiveactionwasattained.AsaresultofanearlierreferralfromDCS,theUSDOLhadpreviouslycitedthesameemployerforviolatingthelaborlawsundertheFairLaborStandardsAct(FLSA),specifically,forfailuretopaythefederalminimumwage.

TheUSDOLhascreditedDCS’sinvolvementinthiscase–especiallybecauseofitsassistanceinfosteringthetrustandcooperationoftheaffectedworkers–asamajorcontributortoitsabilitytoobtainaveryfavorableresolutionfortheworkers.AftertheUSDOLlearnedoftheviolations,itwaspreparedtoseekaninjunctionagainsttheemployertorestraintheshipmentofitsvegetablestorestaurantandretailestablishmentsthroughoutNewEngland,NewYork,andNewJersey,underthe“hotgoods”provisionontheFLSA.Thatprovisionprohibitstheshipment,offerforshipment,orsaleininterstatecommerce,ofanygoodsproducedinviolationoftheminimumwage,overtimepay,childlabororspecialminimumwageprovisions.Apreliminaryinjunctionwasnotrequired,however,becausethefarmimmediatelycameintocompliancewiththelawwhentheDOLmadeitsdemand.

Thiscaseinvolvedacoordinatedresponseamonglocal,state,andfederalagenciesallutilizingtheirrespectiveauthoritytoaddressamulti-facetedexploitationofworkers.DOL’sconsentjudgmentwasenteredonApril3,2013,andprovidedforatotalof$305,500inbackwagesandliquidateddamagestofourteenaffectedemployees,aswellasacivilpenaltyof$10,267totheemployer.ThejudgmentalsoincludesapermanentinjunctionprohibitingfutureviolationsoftheFLSA’sminimumwage,overtime,recordkeeping,andhotgoodsprovisions.

Misclassification, Non-Payment of Prevailing Wages, and Workplace Violations Revealed on Public Jobs TheMassachusettsprevailingwageandrecord-keepinglawsapplytoallconstructionworkperformedonpublicworksprojectsinMassachusetts.Theprevailingwagelawsallowallcontractorsbiddingonpublicworksprojectstoenjoya“levelplayingfield”bystandardizingtherateofpaytheworkerswillearn.Therecord-keepinglawallowsstateagenciestomonitorthespendingoftaxpayermoniesonpublicconstructionprojects.Acompany’sfailuretopayitsemployeesthestateprevailingwageforworkperformedatapublicconstructionsiteortoabidebytherecordkeepingrequirementscanresultinbothcivilandcriminalpenaltiesagainstthecompanyanditsowners.

TheAGO-FLDinitiatedaninvestigationonS.O.M.ConstructionEnterprises,Inc.,ofDudley,Massachusetts,anditsPresident,WesleyMroczkaafterreceivingareferralfromtheJTFandalocaltradeunionthatS.O.M.wasviolatingtheprevailingwagelaws.TheinvestigationrevealedthatS.O.M.,whichworkedon21publicworksprojectsduringtheperiodofJune2009throughMarch2013,failedtopaysomeofitsworkerstheproperprevailingwagerate,failedtosubmittrueandaccuratecertifiedpayrollrecordstotheawardingauthoritiesforthevariousconstructionprojects,failedtokeeptrueandaccuratepayrollrecordsandfailedtofurnishitsemployeeswithasuitablepaystub.Theinvestigationfurtherrevealedthecompanymisclassified18ofitsworkersasindependentcontractorsandpaidtheworkerswithcompanychecks.

S.O.M.andMroczka,werecitedforviolatingthestateprevailingwagelawandtheobligationtomaintainpayrollrecordswithregardtopublicworksprojectsthroughoutMassachusetts.Tosettletheallegationsthecompanyagreedtopayover$78,000infinesandrestitution.S.O.M.cooperatedfullywiththeAttorneyGeneral’sinvestigationbyagreeingtopay$15,000inrestitutionto10employeesandpayacivilpenaltyof$63,200totheCommonwealth.

Inaddition,asaresultofthistip,DLSinvestigatedanasbestosworksiteatasoutheasternMassachusettshighschoolinwhichsubparworkpracticesandworkplaceviolationswereidentified.DLSissued$1,200infinestoS.O.M.Construction.



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Prevailing Wage Investigation Unveils Misclassification and Sub-Rate Pay over 18 Public Construction ProjectsM.D.M.Engineering,Inc.,ofDudley,Massachusetts,anditsPresident,ZbigniewMroczka,agreedtopay$35,520.16inrestitutionandpenaltiestosettleallegationstheyviolatedthestate’sprevailingwagelaws.

InOctober2011,theAGO-FLDinitiatedaninvestigationafterreceivingcomplaintsthroughtheJTFallegingthatM.D.M.Engineering,Inc.wasviolatingtheprevailingwagelaws.Theinvestigationrevealedthatwhileperformingworkon18publicconstructionprojects,M.D.M.misclassifiedsomeofitsroofingemployeesaslaborersandconsequentlyfailedtopaytheseemployeestheproperprevailingwagerate.TheinvestigationfurtherrevealedthatM.D.M.failedtosubmittrueandaccuratecertifiedpayrollrecordstotheawardingauthorities,misclassifiedtwoemployeesasindependentcontractors,failedtofurnishsuitablepaystubstoitsemployeesand,onvariousoccasions,failedtomaketimelypaymentofwages.M.D.M.fullycooperatedwiththeAttorneyGeneral’sinvestigationandagreedtopay$20,520.16inrestitutionto11employeesandpayacivilpenaltyof$15,000totheCommonwealth.

DUA Calendar Year 2013 Recoveries Exceeded Calendar Year 2012 ResultsTherevenueauditteamatDUA,workinginconjunctionwiththeAlcoholBeveragesControlCommission(ABCC),DivisionofCapitalAssetManagementandMaintenance(DCAMM),DepartmentofCareerServices(DCS),DIAandDepartmentofLaborStandards(DLS)throughaJTFeffort,recovered$13,172,042fromemployersinunpaidunemploymentandfairsharecontributionsincalendaryear2013.AspartoftheirroleswiththeJTF,investigatorsandstaffamongthesefiveagenciesconductedalmost19,000cross-agencycompliancechecks.Asaresultofthesechecks,anumberofbusinesseswerefoundtobeinviolationofstatelawandwererequiredtopayunemploymenttaxesowedinordertobeconsideredforastatelicenseorcertification.ThefollowingisadescriptionofDUA’s2013recoveriesforpreviouslyunpaidUITrustFundcontributionsworkingwitheachoftheagencieslistedbelow:

•ABCCcompliancechecksrecovered$10,697,731

•DCAMMcompliancechecksrecovered$1,007,377

•EOLWDcompliancechecksrecovered$365,560

•DCScompliancechecksrecovered$326,499

•DLScompliancechecksrecovered$129,789

JTF Taking a Lead Role in Raising Awareness of Labor Trafficking in MassachusettsOnNovember21,2011,GovernorPatricksigned“AnActRelativetotheCommercialExploitationofPeople,”intolaw.ThelawwentintoeffectFebruary19,2012.

Aspartofthisanti-humantraffickinglaw,theLegislaturecreatedaninteragencytaskforcetoaddressallaspectsofhumantraffickingthroughpolicychanges.ThetaskforceischargedwithaddressingHumanTraffickingthroughservicedevelopment,demandreduction,systemchange,publicawareness,andtraining.ThetaskforceischairedbytheAttorneyGeneralandincludesindividualsrepresentingvictimservices,academia,lawenforcement,publicpolicy,andstategovernment.


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In2013,JTFDirectorandDirectoroftheDepartmentofLaborStandards,HeatherRowe,wasappointedChairoftheLaborTraffickingImplementationCommittee,anadvisorygrouptotheAttorneyGeneral,tofurtheridentifyissuesspecificallyrelatingtotheforcedlaboraspectofhumantraffickingintheCommonwealth.TheLaborTraffickingImplementationCommitteeisacollaborationamongindividualsrepresentingpublicandprivateentities.Thegroupisworkingtoproducerecommendationsthataddresslabortraffickingspecificallyintermsof:

•Determiningwhatlegislative,regulatory,orpolicychangesmaybenecessary;

•Identifyingnecessaryvictimservices;

•Specifyingadditionaltrainingneedsforfirstresponders,lawenforcement,andothers;and

•Specifyingpublicawarenesscampaignsthatshouldbeundertakenandbywhom.

TheLaborTraffickingImplementationCommitteewillhave18monthsfromJanuary2014,todraftrecommendationsfortheAttorneyGeneralwhomaychoosetoissueanaddendumtotheAugust2013reportoftheFindingsandRecommendationsoftheMassachusettsInteragencyHumanTraffickingPolicyTaskForce.

Joint Task Force Operation: Bodywork Industry and Resulting Enforcement JointTaskForceinvestigatorsfromtheDepartmentofIndustrialAccidents(DIA)andtheDivisionofProfessionalLicensure(DPL)initiatedjointoperationsfocusingonthemassage/bodyworkindustry.Thisindustrywasselectedbecauseoftheparticularrisksandvulnerabilitiestohumantraffickingpresentwiththistypeofwork.Mostoftheseoperationswereconductedinconjunctionwithlocallawenforcementfromnumerouscitiesandtowns.

Theoperationsprovedsuccessfulinidentifyingnoncomplianceandegregiousbusinesspracticesamongparticularbusinesses.Sixty(60)employerswereissuedStopWorkOrdersbyDIAinvestigators,ten(10)businesseswereclosed,andfour(4)businesseswerereferredtotheDIA’sCivilLitigationUnitforfailuretoresolvetheirfines.Moreover,DIAcollected$28,400infinesandapproximately100employeeswerenewly-coveredbyworkers’compensationpolicies.Additionalcivilactionsandcriminalpenaltiesarecurrentlybeingpursued.

InvestigatorsfromtheDivisionofProfessionalLicensure,inconjunctionwithDIA,inspectedapproximately 20massageestablishmentsintheGreaterBostonareainthemonthsofFebruaryandMarch.Asaresult,over 40individualswerecheckedforprofessionallicensesand$15,500infineswereissuedfortheunlicensedpracticeofmassageorfailuretolicenseamassageestablishment.

Theinitiativeisongoing,andhasresultedinthreeseparatehumantrackinginvestigationsinpartnershipwiththeAttorneyGeneral’sOffice,theUnitedStatesDiplomaticSecurityService,andseverallocalpolicedepartments.

JTF on the Map—Presentations and Sharing of Ideas with Stakeholders TheworkoftheJTFhasnotgoneunnoticed.In2013,theJTFwasaskedtospeakaboutbestpracticesatanumberofeventsbothin-stateandnationally.Belowisalistofsomeofthe2013JTFpresentations:

•01/08/13–MassachusettsBarAssociationandLaborandEmploymentSectionCouncilRoundtable,Boston,MA

•03/13/13–NationalConsumersLeagueSenateStaffBriefing,Washington,DC–TheJTFDirectorspokeataSenatestaffbriefingtoexaminethestateofpayrollfraudintheUnitedStatesasaguestoftheNationalConsumersLeague



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•04/23/13–BostonBarAssociation–DiscussionofemployeemisclassificationandtheeffectsontheCommonwealth, Boston, MA

•04/24/13–Localaccesscabletelevisionshowfeaturingadiscussionabouttheundergroundeconomy,Billerica, MA

•07/15/13–NHJointTaskForceontheMisclassificationofNHWorkers–bestpractices,Concord,NH

•07/30/13–NationalAssociationofGovernmentLaborOfficials(NAGLO)Conference,Boston,MA

•09/05/13–WBURradioprogram,thecostsoftheundergroundeconomy,Boston,MA

•09/27/13–InterstateLaborStandardsAssociation(ILSA)AnnualConference,SaltLakeCity,UT

•10/17/13–TennesseeEmploymentRelationsResearchassociation(TERRA)2013Conference–presentationonwhatMassachusettsisdoingtocombatemployerfraud,ArnoldAirForceBase,TN

•10/15/13–Multi-AgencyInvestigatorsMeeting,Boston,MA

•10/10/13–MassachusettsAFL-CIOAnnualMeeting,Plymouth,MA

Response to Complaints about Unlicensed Practice Perpetuated by Staffing Agencies Operating Outside the Law AsaresultofseveralcomplaintstotheJTFaboutunlicensedpracticewithinboththeelectricalandplumbingindustries,DLSissuedtwoseparateadvisoriestostaffingagenciesregardingtheplacementofplumbersandelectricianswithvariousworksiteemployers.CounselfortheDPL,underwhoseagencytheElectricalandPlumbingBoardsreside,reviewedandapprovedofthetwocommunications.Theactofsendinglicensedplumbersandelectricianstoperformplumbingandelectricalworkonjobsitesconstitutesengaginginthebusinessofamasterplumberormasterelectrician.Performingsuchactswithoutavalidlicenseisaviolationofstatelaw,andDLSadvisedstaffingagencieswhatcertificationstheywouldneedinordertolawfullyplacetheselicensedtradespersons.Additionally,staffingagencieswereremindedaboutlawsrelatedtothedispatchingofapprenticesandthatpromisingapprenticesOntheJobTraining(OJT)hoursforplacementinvariousjobswasnotonlymisleadingtoapprenticesbutaviolationofstatelawinmostcases.HavingaddressedthesespecificissueswheretheJTFreceivedcomplaintsaboutunlicensedandmisleadingpracticesbyemployers,DLSalsotooktheopportunitytoremindstaffingagenciesabouttheirobligationsunderthestate’sTemporaryWorkersRighttoKnowLaw,whichbecameeffectiveonJanuary31,2013.

ABCC Licensing Compliance Checks Reap over $10M in Recovered Funds from Applicants Seeking Liquor LicensesThestate’sunemploymentinsurancedepartmentrecovered$10,697,731duringcalendaryear2013througheffortsbytheABCCtoholdinitialandrenewalapplicationsforliquorlicenses,untilapplicantspaidoutstandingunemploymenttaxesduetotheCommonwealth.Throughthisinteragencycollaboration,ABCChastrulyleveledtheplayingfieldforbusinesseswithliquorlicenses,ensuringthesebusinessespaytheirfairshareanddonotgainacompetitiveadvantagebyillegallyreducingtheirexpenses.

Section 3: Noteworthy Accomplishments Page10


Cross-Agency TrainingTheTaskForcepartneragenciesremaincommittedtocrossagencyeducationandtrainingtoensurethatourinvestigativeagenciesarefamiliarwitheachother’sprocessesandenforcementauthority.In2013,DORcontinuedtoofferitsemployeetraininganddevelopmentprogramstotheJointTaskForceinvestigativeteamwhentrainingslotswereavailable.ThisverysuccessfulpartnershipallowedJTFpartnerstotakecoursesthatmaynothaveotherwisebeenavailabletothem.

InOctober,theJTFheldanall-agencyinvestigatormeetingwhereover45investigatorsfromJTFpartneragenciescametogethertodiscussbestpracticesandsuccessfulinitiativesamongstateagencies.Thismeetinggeneratedthoughtfuldiscussionandawarenessofotheragencies’authorityandobjectives.Asaresultofthismeeting,alistofbasicinvestigatorquestionswascompiledthroughfeedbackfromthedifferentpartneragenciesthatattendedthemeeting.Thisinformationwassubsequentlysharedwithalltheinvestigativestaff.Thehelpfulquestionslistmakesiteasiertoidentifywhatinformationpartneragenciesmayneedforeffectiveandqualityreferrals.

InDecember,ScottBurson,DeputyRegionalAttorneyfortheNationalLaborRelationsBoard(NLRB),Region1,spoketotheJTFinvestigativeteamregardingtheagency’sauthorityandobjectives,aswellashowtheJTFcanworkwiththeNLRBinthefuture.NLRBisworkingtowardincreasingvisibilitytoagenciesparticipatingintheJTFandtobetterunderstandthemissionsofJTFparticipatingagencies.Thisrelationshipwillmutuallyenhanceourabilitytoachieveourrespectivemissions,protectworkerrights,andsupportlaw-abidingemployers.Federalandstatepartnershipsareessentialinenforcinglaborlawsefficientlyandeffectively.

Cross-trainingandawarenessinitiativesassistJTFagenciesinoperatinginanefficientandcoordinatedmannerbyprovidingopportunitiesforagenciestoidentifypotentialcooperativemethods.Cross-agencytraininghelpstoincreaseinvestigators’awarenessoftherequirementsplacedonemployersbytheirsisteragenciesandencourageinter-agencyreferrals.

Promoting Employer Compliance through Outreach ActivitiesIn2013theJTFincreasededucationandoutreacheffortswithafewnewinitiatives.Earlyin2013,theJTFassistedpartneragenciesincreatingoutreachmaterialsthataredistributedbyDORtonewly-establishedbusinessesintheCommonwealth.Theseoutreachmaterials,distributedbyoutreachworkersfromDOR,explainworkers’compensationandunemploymentinsurancecontributionrequirementsunderMassachusettsGeneralLawandwerecombinedwithothermaterialsfromDORwelcomingnewbusinessestoMassachusettsandeducatingthemonbasicemployerresponsibilities.

Inaddition,Massachusettsishosttoavarietyofspecialevents,carnivals,fairsandfestivalsthatoccurthroughouttheyearalloverthestate.Thesecherishedeventsboostthelocaleconomy,provideagreatoutletforlocalvendorsandmerchants,andofferdelightfulrecreationalopportunitiesforresidentsofeveryagegroup.AfterareferraltotheJTFregardingallegationsofwageviolationsbyanout-of-stateemployeratoneofthefestivals,theJTFtookaproactiveapproachtofutureseasonalvenuestopromotecompliancewithapplicableemploymentandtaxlaws.ComplianceassistancematerialsspecificallydesignedfortemporarybusinessoperationswerecreatedanddistributedinordertoprovideaquickreferenceforfestivalvendorsaboutimportantemployerresponsibilitiesrequiredunderMassachusettsLaw.ThisproactiveoutreachisdesignedtowelcomeseasonalbusinessopportunitiestoourCommonwealthwhichdonotundercutlaw-abidingbusinessesthatmaybemorefamiliarwithourstate’slabor,licensing,andtaxlaws.ItalsoputsbusinessesonnoticethatMassachusettsisseriousaboutcombatingemployerfraud.

Section 3: Noteworthy Accomplishments Page11


Results of Referrals and Cooperative OversightReporting Suspected Cases of Fraud and Misclassification to the Task ForceThewebsiteoftheJointEnforcementTaskForceontheUndergroundEconomyandEmployeeMisclassification,www.mass.gov/lwd/jtf,providesinformationabouttheundergroundeconomyandhowtotakeactionwhenitcomestogettinghelpwithsuspectedcasesofworkplacefraudandemployeemisclassification.ThewebsiteprovidesthepublicwithaformthatcanbecompletedandsubmittedtotheJTFforsuspectedcasesoffraudandmisclassification.TheJTFanonymousreferraltelephoneline,1-877-96-LABOR,providesanotheravenueforindividualstoprovideinformationontheundergroundeconomytoJTFpartneragencies.

TheexistenceoftheJTFmakesreportingsuspectbusinesspracticeseasierforthepublic.Toreportemployerfraud,anindividualmayhavepreviouslyneededtocallupto10differenttiplines.WiththeJTF,anindividualcanreportanemployerpayingwagesincash,safetyconcerns,wageandhourviolations,insurancepremiumavoidance,andnon-licensure,allinoneplace.Theinformationisthendispatchedtotheagencythathandlesthenon-complianceallegationforfurtherinvestigation.

JTF Compliance ChecksJTFpartneragencies’collaborationgoesbeyondthecoordinationofJTFreferralsandinvestigations.TheJTFhasalsofacilitatedtheimplementationofnumerouscooperativeoversightprocesses,resultinginover18,500compliancechecksamongstagenciesin2013,toassistinenforcementagainstemployersviolatingMassachusettstax,employment,andlicensinglaws.AcompliancecheckoccurswhenasingleJTFpartneragencyreviewinganemployer’sconductforpurposesofanongoinginvestigation,licenseapplication,licenserenewal,procurementcertification,credential,grant,orotherbenefit,inquiresastowhetherotherJTFpartneragencieshavenoncompliancemattersrelativetothatparticularemployer.CooperativeoversightintheformofJTFcompliancecheckshasproventobeanimportanttoolformanyoftheCommonwealth’sagencies.

Section 4: Results of Referrals and Cooperative Oversight


DUA Recoveries – Agency Compliance Checks January 2013 – December 2013

Agency sending Compliance Check: Amount Assessed Number of Compliance Checks Completed

ABCC $4,315,322 3,318

ABCC(Renewals) $6,382,409 10,426

COMM. CORP $408,348 1,038

DCAMM $1,007,377 1,315

DCS $326,499 613

DLS $365,560 1,494

EOLWD - JTF $365,317 500

DUA-Section30(trainingopportunitiesprogram)

$0 105

FSC $236,738

Total Amount Assessed for Period 5: $13,172,042

Total number of Compliance Checks Completed for Period 5:

18,809

JTF Referral InvestigationsJTFpartneragenciesthathaveenforcementauthorityoverundergroundeconomymattershavetrackedtheiractivitieswithregardtoJTFreferralsandresultinginvestigations.During2013,JTFreviewedreferralsandopenedagencyinvestigationswhenappropriate.Theseinvestigations,conductedontopoftheagencies’independentinvestigatoryandenforcementwork,rangedfromsingle-agencyauditstomulti-agencyactions,withresultsrangingfromstopworkordersissued,toowedmoniesrecovered,toprosecutionofpersonsforegregiousinfractions,tonoviolationsfound.Itshouldbenotedthatsincewhitecollarcrimeinvestigationscanrequiremonthsofinvestigationand/orlitigation,theresultsofmanyinvestigationsmaynotbeavailableuntillongafterreferralsaremade.Thosecomplaintsthatwerenotinvestigatedeitherlackedsufficientinformationforfollow-uporlackedrelevancetothemissionoftheJTF.

Inadditiontothemonetaryrecoveries,theJTFhasopenedthedoorsforagencycollaborationthat,inmanyways,isunprecedented.Thishasallowedagenciestohavequalitytipsprovided,shareresources,andreduceduplicativeefforts.Whileeachparticipatingagencyhastheabilitytorecouprevenueonitsown,ourcollectiveeffortsprovidegreaterenforcementandcompliance;yieldssignificantlymoreinrevenuefortheCommonwealth;anddeliversbetteroutcomesforbothemployeesandemployersinthestate.TheJTFcontinuestosuccessfullyworktogethertoconfrontfraudandabuseamongemployers,toprovideanequalplayingfieldforbusinessestocompete,andtoprotect workers.




Partner Agency Enforcement ActivityAlcoholic Beverages Control Commission (ABCC),whichinvestigatesapplicationsforliquorlicenses,prosecutesviolationsofpertinentstatutesandregulations,andadjudicatesdisputesamongmembersoftheindustry,participatedintherecoveryofover$10millionforthestate’sUITrustFund,andassistedJTFagenciesinreviewinginvestigationsrelativetoemployersmaintainingorapplyingforaliquorlicenseintheCommonwealth.

Attorney General’s Office - Fair Labor Division (AGO-FLD)reviewedallrelevantJTFcomplaintsforpotentialviolationsofminimumwageandchildlaborlaws;nonpaymentofwages,prevailingwageviolations;misclassificationofemployees;overtimepayviolations;payrollrecordkeeping;workers’compensation,andunemploymentinsurancefraud.TheAGO-FLDundertooknumerousinvestigationsthatoriginatedfromJTFreferralsandemployeemisclassificationcomplaints,yieldingbothcivilandcriminalenforcementactions.Includedamongsttheseefforts,theAGO-FLDissued32civilcitationswithrestitutionandpenaltyorderstotalingnearly$250,000.Additionally,theAGO-FLDsuccessfullyobtainedaguiltyfindingstemmingfroma52-countcriminalindictmentagainstafraudulentnon-profitcharitythatbeganwithemployeecomplaintsregardingmisclassification,overtimeandrelatedwageviolations,andledtothediscoveryofembezzlementandgrossfraud,amongotherthings.Together,finesandrestitutionforallchargestotaledover$155,000andtheownerwassentencedto4-5yearsinprison.

Department of Industrial Accidents (DIA)reviewedallrelevantcomplaintsreceivedbytheJTFandcheckedeachreferredemployerforworkers’compensationinsurancecoverage.BaseduponthereviewandinvestigationofallJTFreferralsincalendaryear2013,DIAissued103StopWorkOrdersforlackofworkers’compensationcoverage.Asaresult,288workerswerenewlycoveredbyworkers’compensationpoliciesandDIAreceived$52,300infines.InitscomplementaryenforcementactionsbyDIAinvestigatorsduringcalendaryear2013,DIAconducted82,964compliancechecks,5,694investigations,andissued2,541StopWorkOrdersforlackofworkers’compensationinsurance,whichresultedin$1,333,337infinesand6,288workersbroughtunderinsurancecoverage.Hadanyofthoseuncoveredworkerssustainedanaccidentonthejob,theywouldhaveturnedtothestate’sworkers’compensationinsurancetrustfundtocovertheirweeklybenefitsandmedicalexpenses;thisrepresentsanunfairdynamicforbusinessesthataredutifullypayingtheirinsurancepremiumstooperateincompliancewiththestate’sworkers’compensationlaws.

Department of Labor Standards (DLS)assistedDUAinrecoveringjustunder$365,560inunpaidunemploymentinsuranceobligationsthroughajointoperationduring2013.DLSalsoinvestigatedcomplaintsreferredbytheJTFallegingmisconductonthepartofemploymentortemporarystaffingagencies,temporaryworkersrighttoknowlawviolations,asbestosandleadpaintrelatedlicensing,andapprenticetrainingprograms.TheDLSinvestigated17employmentandplacementagenciesasaresultofJTFreferrals.Ofthe17,sixwerenotincompliancewiththestate’sEmploymentAgenciesLaw.Asaresult,$1,250infineswereassessedandwrittenwarningsweresenttothenoncompliantentities.DLSalsoinvestigatedsevenrenovation/paintingcontractorsasaresultofJTFreferralsin2013.Oneofthosefirmswasnotincompliancewiththestate’sDeleadingandLead-SafeRenovationregulation.ThecompanywascitedforaLead-SafeRenovationviolationandassesseda$1,200civilpenalty.DLSprovidedguidancetootherJTFagenciesincasesinvolvingemployersineachoftheseareas.Finally,DLScitedanasbestoscontractorthatwaspartofaJTFinvestigationfrom2012becauseofasbestosviolations.Acivilpenaltywasassessedintheamountof$1,200.Thecompanydidnotpaythecivilpenalty,acessationorderwasissued,andthecompanywasreferredtoadebtcollectionagency.



Department of Revenue (DOR)reviewedandclosed101casesthatwerereferredfromtheJTFthatresultedintheassessment$728,697ofadditionaltax,interest,andpenaltiesin2013.TherearealsoeightJTFcasestotaling$50,742thatshouldbeassessedwithinthefirstquarterof2014and23morecasesstillinprogressattheendofthecalendaryear.SincetheinceptionoftheJTF,DORhasclosed630casesfromJTFreferrals,totaling$7,185,707inrecoveries.

Department of Unemployment Assistance (DUA)reviewedallrelevantJTFreferralslookingforUnemploymentInsurance(UI)TrustFundandFairShareContribution(FSC)violationssuchasfailuretofile,underreporting,failuretoregister,and/orfailuretopayinfull.DUArecovered$13,172,042inunpaidemployercontributionstotheUnemploymentInsuranceTrustFundandFSCthroughreferralsandcompliancecross-checkswiththeAlcoholicBeveragesControlCommission(ABCC),CommonwealthCorporation(COMM.CORP),DepartmentofLaborStandards(DLS),DivisionofCapitalAssetManagementandMaintenance(DCAMM),DepartmentofIndustrialAccidents(DIA),andExecutiveOfficeofLaborandWorkforceDevelopment(EOLWD).

Division of Capital Asset Management and Maintenance (DCAMM),in2013,assistedtheCommonwealthinrecovering$1,010,225andbringing158contractorsintocompliancewithoutstandingDUAliabilities.ThiswasaccomplishedbysendingnoticestoapplicantsthattheymustsettletheirDUAobligationbeforetheycanbeeligibleforDCAMMcertificationtobidonChapter149publicbuildingconstructioncontracts.DCAMMhaltsthecertificationprocessforanycontractorsthathavenotbroughtthemselvesintocompliancewithDUAobligationsanddeniestheseapplicationsfromcertification.Theincreasein2013inthenumberofcontractorsbroughtintoDUAcomplianceinpartreflectsDCAMM’sattentiontoassuringthatnon-MassachusettscontractorsfulfilltheirlegalobligationofregisteringwithDUA.

During2013,DCAMMdeniedcertificationtothreeapplicantsforvariousreasons,includingexcessiveprevailingwageviolations,poorperformanceandsupervision,non-compliance,andmistreatmentofsubcontractors.Additionally,infewerthan10cases,applicationfileswereclosedandcertificationwithheld,oftendueto non-complianceissues.ThisrecordofachievementfortheselownumbersisattributabletoDCAMM’sinsistence,asaconditiontocertification,thatapplicantsstrictlycomplywithinternalcertificationrequirements,andtointeragencyenforcementwithDUAandotherJTF-participatingagencies.DCAMM’spracticeofrequiringthatapplicationsforrenewalofcertificationbesubmittedatleastthreemonthspriortoexpirationoftheapplicant’scurrentcertificatealsoprovidesampletimeforassuringsuchcomplianceand/orcorrectionofnon-compliance.

DCAMM’sCertificationUnitcontinuestocross-checktheDIA’sdebarmentlist,theSupplierDiversityOffice’s(SDO)DecertificationandWithdrawalListing,DUA’slistingofcontractorswithoutstandingunemploymentassistanceliabilities,theOccupationalSafetyandHealthAdministration(OSHA)website,theWorker’sCompensationRatingInsuranceBureau(WCRIB)website,theAttorneyGeneral’slistofdebarredcontractors,theSecretaryoftheCommonwealth,CorporationDivisionwebsite,theDepartmentofPublicSafetyLicenseverificationwebsite,andtheDivisionofProfessionalLicensureaspartofDCAMM’sstandardcertificationapplicationprocess.Additionally,eachcontractor’sapplicationischeckedagainstDCAMM’sinternalJTFcasetrackingdatabase,andonaweeklybasis,alistofallcontractorapplicantsreceivedissenttoallJTFpartneragenciestoinquirewhetheranyotheragencyisworkingonanymattersrelatingtotheapplicant.

Division of Professional Licensure (DPL)investigatedallJTFreferralsinvolvingunlicensedindividualsorbusinessesperformingservicesthatrequireprofessionallicensurebytheCommonwealth.Inaddition,DPLcontinuedtooperateitsHealthCareFraudTipLine,providingconsumerswithaconfidentialoutlettoalerttheagency’sHealthCareFraudUnitofexcessiveorfalsebillingpracticesbyDPLlicensedhealthprofessionals.InvestigatorsfromtheDPL,inconjunctionwithDIA,inspectedapproximatelytwenty(20)massageestablishmentsintheGreaterBostonareainthemonthsofFebruaryandMarch.Asaresult,overforty(40)individualswerecheckedforprofessionallicensesand$15,500infineswereissuedfortheunlicensedpracticeofmassageorfailuretolicenseamassageestablishment.


Section 5: 2014 Goals and Initiatives

2014 Goals and InitiativesNowinitssixthyear,theJTFremainsfocusedonincreasingthevolumeandimpactofcross-agencyenforcement.Thiswillbeaccomplishedbybuildingontheexistingprocessesbywhichpartneragenciesconductcooperativeinvestigations.Theseeffortsraiseawarenessinthegeneralpublic,thebusinesscommunity,andwithingovernment,abouttheworkoftheJTFagenciestocombattheundergroundeconomyandtheresponsibilitiesofemployersintheCommonwealth.ThereareanumberofkeyinitiativesbeingundertakenbytheJTFinfurtheranceofthesegoals.

Strategic GoalsInaccordancewithExecutiveOrder540,“Improving the performance of state government by implementing a comprehensive strategic planning and performance management framework in the Executive departments,”theJTFsetoutits2013–2015strategicgoalstotheGovernor:

•Increasingeducation,coordinationandenforcementofthestate’slabor,licensing,andtaxlawsthroughtheworkoftheUndergroundEconomyTaskForce;

•Increasingrevenuerecoverythroughenforcementbyinspection,audit,andinformation-sharing;

•LevelingtheplayingfieldforemployersbypublicizingJTFenforcementsuccessesthatwillserveasadeterrenttocuttingcornersonlabor,licensing,andtaxlaws;and

•EstimatingthefrequencyofemployeemisclassificationandundergroundeconomicactivityamongtheCommonwealth’sindustriesthroughtheundertakingofaresearchstudy.

MassResults StrategicPlan2013-2015

TheMassResultsprogrambringstogetherkeyinitiativesfocusedonmakingstategovernmentmoreeffective,moreaccountableandmoreopen–deliveringbetterresultsforthepublic.

InvestinginEducationtoClosethe Achievement

Gap

Governor’s Goals:

EOLWD’s Goals:

Joint Task Force’s Goals:

InvestinginInnovationandInfrastructuretoCreateJobs,Expand

Opportunity

ExpandingAccesstoAffordable,Quality

Health Care

BuildingStronger,SaferCommunities

throughPositiveYouthDevelopmentandYouthViolencePrevention

Protect Worker Safety,Health,Wagesand

WorkingConditions

Shrink UndergroundEconomy

Increaseeducation,coordinationandenforcementofthestate’slabor,licensing,andtaxlawsthroughtheworkofthe

UndergroundEconomyTaskForce

EstimatethefrequencyofemployeemisclassificationandundergroundeconomicactivityamongtheCommonwealth’s

industriesthroughtheundertakingofaresearchstudy

Increaserevenuerecoverythroughenforcementbyinspection,audit,andinformation-sharing

LeveltheplayingfieldforemployersbypublicizingTaskForceenforcementsuccessesthatwillserveasadeterrenttocuttingcornersonlabor,licensing,andtaxlaws

BetterLaborMarket Data

PublicSectorLaborStability

MaximizeJobPlacementand

Hiring

FinancialReliefFollowingJobLoss

IncreaseYouthEmployment

Align Skill Sets ofUnemployedwithEmployer

Demand

CompensationforWorkplaceInjury


Section 5: 2014 Goals and Initiatives

Research Study on Employee Misclassification and the Underground Economy in MassachusettsAresearchstudytodetermineandanalyzethecurrentstateoftheundergroundeconomyinMassachusettswasunderwayduring2013,throughapartnershipamongDOR,DUA,andtheJTF.TheJTFhopesthattheresultsofthestudywillinformfuturepolicyconsiderationsbaseduponwhatthestudyrevealsaboutissues,statistics,lostrevenues,andotherimpactsonbusinessesandindividualworkers.Theneedforconcretedatathatclarifiesandillustratesthisproblemiscriticalformakinginformedpolicydecisions.Thestudy’spurposewastoestimatethefrequency,scale,andconsequencesofmisclassificationandtheundergroundeconomyontheCommonwealth.RevenueSolutions,Inc.(RSI)wasselectedbyDORasapartneroftheJTF,toundertaketheanalysisandwriteareportoftheirfindings.TheRSIreportprovidesadetaileddescriptionofthespecificaimsandanalysesitundertook.TheJTFalsocreatedaTechnicalAdvisoryBoard(TAB)toworkwiththeRSIteamduringitsanalysis.Becauseoftheconfidentialityofthedata,theTABcouldnot,anddidnot,participateinthecreationofthedatasetortheanalysisofthedata.Itdidprovide,throughaseriesofmeetingswiththeJTFandRSIthroughoutthestudyperiod,responsesandsuggestionsregardingtheanalysis.TheTABwasalsochargedwithwritinganindependentassessmentofthestudyfindingsbasedonRSI’sfinalreporttotheJTF.Thestudyresultswillbereleasedin2014.

Education and OutreachTheJTFwillcontinueaneducationandoutreachplanthatinvolvesthefollowingmulti-facetedapproach:

1)Createeducationalmaterialforworkersandemployerstobringawarenesstotheongoingissuesoftheundergroundeconomy.Workercardswillhavebriefdescriptionsofsignsofundergroundeconomyactivityandhowtoreportit.Businessoutreachwillincludeabrochurefocusedoneducatingbusinessownersoftheadverseeffectsofcontributingtotheundergroundeconomyormisclassifyingemployees.Thematerialwillalsohavecontactinformationtoreportfraudulentworkpractices.

2)UtilizeitsstatewideAdvisoryCounciltoassistineducatingworkersandbusinesses,identifypotentialproblemareas,anddeveloppolicyrecommendationsaroundspecificlegislativeproposals.

3)ContinuetoenhanceitswebpagewiththegoalofimprovingaccesstoinformationabouttheundergroundeconomyandtheworkoftheJointTaskForce.

4)AcceptinvitationsfromstakeholderstoshareinformationabouttheJTF,discussbestpractices,opportunities,andchallengesfacedbyemployers,employees,regulators,andadvocates.

Cross-Agency TrainingTheJTFpartneragenciesremaincommittedtoacross-agencyeducationandtrainingplantoensurethatourinvestigativeagenciesarefamiliarwithvariousprocessesandenforcementauthority.Cross-trainingensuresefficiency,coordinationandencouragesinteragencyreferrals.During2014,theJTFwillmaketrainingopportunitiesavailableforpartneragencyinvestigators.


Page 18Section 5: 2014 Goals and Initiatives

Expanding Additional Partnerships TheJTFhasseentremendoussuccessasaresultofcompliancechecksamongourpartneragencies.Monetaryrecoverieshaveincreaseddramaticallyasaresultofcross-agencycommunicationtoincreasecompliancewithmultiplestateagencies’requirements.ThiscoordinatedreviewhelpstoleveltheplayingfieldforbusinessesastheyarebeingrequiredtopayalloutstandingUITrustFundcontributionsandhaveavalidworkers’compensationpolicy(ifoneisrequired)beforebeinggrantedauthorizationtolawfullyconductaregulatedactivity.Ifabusinesschoosesnottobecomecompliant,itcouldpotentiallylosealicenseorforgoopportunitiestobidonastate-fundedproject.BringingadditionalpartnersintotheJTFcouldmeanadditionalrevenuerecoverytotheCommonwealthandmorebusinessescomingoutoftheshadows.Moreover,additionalpartnersmaybehelpfultoenforcement,asitisnotuncommonforanunscrupulousbusinesstohavemultiplecomplianceissueswithmultiplegovernmentagencies.Themoreavenuesofenforcementavailable,themorelikelywemaybetocurbillegalbehaviors.

Multi-State and Federal CooperationManyJTFagenciesandpartners,suchasDUA,DIA,DLS,DOR,AGO-FLD,andtheIFBhavestrong,workingrelationshipswithfederalauthorities.TheJTFisfocusedonbuildingontheseexistingchannelsofcooperationandmaximizinganypotentialassistancethatcanbeprovidedinaddressingtheundergroundeconomyinMassachusetts.Also,theJTFhasdevelopedrelationshipswithitscounterpartsinotherstatestosharenewideasinvolvingmethodsofcross-agencyenforcement,andtoopenpotentialavenuesformulti-stateenforcementinitiatives.


Page19Appendix A: Executive Order 499

Appendix A: Executive Order 499By His ExcellencyDEVAL L. PATRICK

GOVERNOREXECUTIVE ORDER NO. 499

Establishing a Joint Enforcement Task Force on the Underground Economy and Employee Misclassification

WHEREAS,thehealthoftheCommonwealth’seconomy,itsworkers,anditsbusinessesisharmedbytheexistenceofanillegalundergroundeconomyinwhichindividualsandbusinessesconcealtheiractivitiesfromgovernmentlicensing,regulatory,andtaxingauthorities;

WHEREAS,individualsandbusinessesthatoperateintheundergroundeconomydosoinviolationoflabor,employment,tax,insuranceandoccupationalsafetylaws,byfailingtopayrequiredwages,carryworkers’compensationinsurance,complywithhealth,safetyandlicensingrequirements,orpayincometaxesandpayrolltaxesthatfundunemploymentinsurance,disabilityinsurance,andMedicareandSocialSecuritybenefits;

WHEREAS,certainbusinessesalsoimproperlyclassifytheiremployeesas“independentcontractors”(referredtoas“employeemisclassification”)andhireundocumentedworkerstoavoidcompliancewithlabor,employment,tax,insuranceandregulatoryrequirements;

WHEREAS,theundergroundeconomyand,inparticular,thepracticeofemployeemisclassification:(1)exploitsvulnerableworkersanddeprivesthemoflegalbenefitsandprotections;(2)givesunlawfulbusinessesanunfaircompetitiveadvantageoverlawfulbusinessesbyillegallydrivingdownviolators’taxes,wages,andotheroverheadcosts;(3)defraudsthegovernmentofsubstantialtaxrevenues;and(4)harmsconsumerswhosufferatthehandsofunlicensedbusinessesthatfailtomaintainminimumlevelsofskillsandknowledge;

WHEREAS,arecentstudybasedonauditsofMassachusettsunemploymentrecordsforconstructionemployersbetween2002and2005foundthatupto14%oftheemployeescoveredbytheauditswereestimatedtohavebeenmisclassifiedbyemployers;

WHEREAS,effortstocombattheundergroundeconomyandemployeemisclassificationhistoricallyhavebeendividedamongvariousagencies,diminishingthetimeliness,efficiencyandeffectivenessofsuchefforts;and

WHEREAS,thecreationofjointtaskforceshasproventobeaneffectivemechanismforenhancinginteragencycooperation,informationsharing,andtheprosecutionofviolators;

NOW,THEREFORE,I,DevalL.Patrick,GovernoroftheCommonwealthofMassachusetts,byvirtueoftheauthorityvestedinmebytheConstitution,Part2,c.2,§I,Art.I,doherebyorderasfollows:

Section1.ThereisherebyestablishedtheJointEnforcementTaskForceontheUndergroundEconomyandEmployeeMisclassification(the“TaskForce”).


Appendix A: Executive Order 499

Section2.TheTaskForceshallconsistofthefollowingmembersortheirdesignees:theDirectorofLabor,theCommissionerofRevenue,theCommissioneroftheDepartmentofIndustrialAccidents,theChiefoftheAttorneyGeneral’sFairLaborDivision,theCommissioneroftheDivisionofOccupationalSafety,theCommissioneroftheDepartmentofPublicSafety,theDirectoroftheDivisionofProfessionalLicensure,theDirectorofApprenticeshipTrainingandtheDirectoroftheDivisionofUnemploymentAssistance.TheDirectorofLaborshallchairtheTaskForce.

Section3.TheTaskForceshallcoordinatejointeffortstocombattheundergroundeconomyandemployeemisclassification,includingeffortsto:(a)fostercompliancewiththelawbyeducatingbusinessownersandemployeesaboutapplicablerequirements;(b)conductjoint,targetedinvestigationsandenforcementactionsagainstviolators;(c)protectthehealth,safetyandbenefitrightsofworkers;and(d)restorecompetitiveequalityforlaw-abidingbusinesses.

Infulfillingitsmission,theTaskForceshall:

a.FacilitatetimelyinformationsharingbetweenandamongTaskForcemembers,includingthroughtheestablishmentofprotocolsbywhichparticipatingagencieswilladviseorrefertootheragenciesmattersofpotentialinvestigativeinterest;

b.IdentifythoseindustriesandsectorswheretheundergroundeconomyandemployeemisclassificationaremostprevalentandtargetTaskForcemembers’investigativeandenforcementresourcesagainstthosesectors,includingthroughtheformationofjointinvestigativeandenforcementteams;

c.Assessexistinginvestigativeandenforcementmethods,bothinMassachusettsandinotherjurisdictions,anddevelopandrecommendstrategiestoimprovethosemethods;

d.Encouragebusinessesandindividualstoidentifyviolatorsbysolicitinginformationfromthepublic,facilitatingthefilingofcomplaints,andenhancingtheavailablemechanismsbywhichworkerscanreportsuspectedviolations;

e.Solicitthecooperationandparticipationofdistrictattorneysandotherrelevantenforcementagencies,includingtheInsuranceFraudBureau,andestablishproceduresforreferringcasestoprosecutingauthoritiesasappropriate;

f.Workcooperativelywithemployers,labor,andcommunitygroupstodiminishthesizeoftheundergroundeconomyandreducethenumberofemployeemisclassificationsby,amongothermeans,disseminatingeducationalmaterialsregardingtheapplicablelaws,includingthelegaldistinctionsbetweenindependentcontractorsandemployees,andincreasingpublicawarenessoftheharmcausedbytheundergroundeconomyandemployeemisclassification;

g.Workcooperativelywithfederal,commonwealth,andlocalsocialservicesagenciestoprovideassistancetovulnerablepopulationsthathavebeenexploitedbytheundergroundeconomyandemployeemisclassification,includingbutnotlimitedtoimmigrantworkers;

h.Identifypotentialregulatoryorstatutorychangesthatwouldstrengthenenforcementefforts,includinganychangesneededtoresolveexistinglegalambiguitiesorinconsistencies,aswellaspotentiallegalproceduresforfacilitatingindividualenforcementefforts;and


Appendix A: Executive Order 499

i.Consultwithrepresentativesofbusinessandorganizedlabor,membersoftheGeneralCourt,communitygroupsandotheragenciesconcerningtheactivitiesoftheTaskForceanditsmembersandwaysofimprovingitseffectiveness,includingconsiderationofwhethertoestablishanadvisorypanelunderthesecretaryoflaborandworkforcedevelopment.

Section4.TheTaskForceshalltransmitanannualreporttotheGovernorsummarizingtheTaskForce’sactivitiesduringtheprecedingyear.Thereportshall,withoutlimitation:(a)describetheTaskForce’seffortsandaccomplishmentsduringtheyear;(b)identifyanyadministrativeorlegalbarriersimpedingthemoreeffectiveoperationoftheTaskForce,includinganybarrierstoinformationsharingorjointaction;(c)propose,afterconsultationwithrepresentativesofbusinessandorganizedlabor,membersofthelegislatureandotheragencies,appropriateadministrative,legislative,orregulatorychangestostrengthentheTaskForce’soperationsandenforcementeffortsandreduceoreliminateanybarrierstothoseefforts;and(d)identifysuccessfulpreventativemechanismsforreducingtheextentoftheundergroundeconomyandemployeemisclassification,therebyreducingtheneedforgreaterenforcement.TheTaskForcealsoshalltakeappropriatestepstopublicizeitsactivities.

Section5.Totheextentpermittedbylaw,everyagencywithintheExecutiveBranchshallmakeallreasonableeffortstocooperatewiththeTaskForceandtofurnishsuchinformationandassistanceastheTaskForcereasonablydeemsnecessarytoaccomplishitspurposes.

Section6.NothinginthisExecutiveOrdershallbeconstruedtorequireactioninconsistentwithanyapplicablestateorfederallaw.

Section7.ThisExecutiveOrdershallcontinueineffectuntilamended,superseded,orrevokedbysubsequentExecutiveOrder.

GivenattheExecutiveChamberinBostonthis12thdayofMarchintheyearofourLordtwothousandandeightandoftheIndependenceoftheUnitedStates,twohundredandthirty-two.

DEVALL.PATRICKGOVERNORCommonwealthofMassachusetts

WILLIAM FRANCIS GALVINSecretaryoftheCommonwealth

GOD SAVE THE COMMONWEALTH OF MASSACHUSETTS

Appendix B: Member Agencies

Appendix B: Member AgenciesExecutive Office of Labor and Workforce DevelopmentDepartment of Industrial Accidents (DIA)TheDepartmentofIndustrialAccidentsadministersthelawrelatedtotheMassachusettsworkers’compensationsystem.Thislawbalancestheprovisionofpromptandfaircompensationtoworkerswithoccupationalinjuriesandillnessarisingoutofandinthecourseofemployment,withtheneedsofemployerstomanageworkers’compensationinsurancecosts.TheDepartmentalsoadministerstheWorkers’CompensationTrustFund,whichprovidesbenefitstoinjuredworkerswhentheiremployerfailstoproperlyinsureorprovidethesebenefits.DIA’sinvestigativeunitworkstoensurethatbusinessesandindustriesareincompliancewiththeworkers’compensationstatute.OneenforcementtoolemployedbytheDIAistheissuanceofimmediateStopWorkOrderstoviolators,whoaresubjecttofinesandprosecutionforfailingtoprovidetheiremployeeswithworkers’compensationbenefits.For more information, visit: www.mass.gov/dia

Department of Labor Standards (DLS)TheDepartmentofLaborStandards(DLS)isresponsibleforthepromotionandprotectionofworkers’safetyandhealth,wagesandworkingconditions,andtosupportemployersandworkersintheutilizationofapprenticeshipasaworkforcedevelopmenttool.DLSprotectsworkersbymeansofeducationandtraining,workplacesafetyandhealthconsultationandassessment,occupationalinjuryandillnessdatacollectionandanalysis,andconsistentandresponsibleadministrationofitsstatutesandregulations.DLSoperatesthefollowingprograms:DivisionofApprenticeTraining,PrevailingWageProgram,MinimumWageProgram,EmploymentAgencyProgram,On-siteConsultationProgram,AsbestosProgram,LeadProgram,OccupationalLeadPoisoningRegistry,MassachusettsWorkplaceSafetyandHealthProgram,OccupationalSafetyandHealthStatisticsProgram,andIndustrialHygieneLaboratory.For more information, visit: www.mass.gov/dols

Department of Unemployment Assistance (DUA)TheDepartmentofUnemploymentAssistanceadministerstheunemploymentinsuranceprograminMassachusetts,providingtemporaryfinancialassistancetoworkerswholosetheirjobsthroughnofaultoftheirown.Fundingforunemploymentinsurancebenefitscomesfromcontributionspaidbythestate’semployers;nodeductionsaremadefromworkers’salaries.EmployerspayquarterlycontributionstotheMassachusettsDUA.ProtectingtheintegrityoftheunemploymentinsuranceprogramisaresponsibilitytakenseriouslybytheDUA.WorkingwithJointTaskForcepartners,progressisbeingmadeinpreventing,detecting,investigating,andprosecutingthosewhodefraudorattempttodefraudtheunemploymentinsurancesystem.Thisincludesemployersthatevadepayingtheirfairshareofunemploymentinsurancecostsbyintentionallymisclassifyingtheiremployeesasindependentcontractors.For more information, visit: www.mass.gov/dua

Office of the Attorney GeneralFair Labor DivisionTheOfficeofAttorneyGeneral’sFairLaborDivisionenforcesvariouslawsthatprotectworkers,includingtheprevailingwage,minimumwage,paymentofwages,overtime,payrollrecordkeeping,employeemisclassification,tippooling,childlabor,Sundayandholidaypremiumpaylaws.TheFairLaborDivisionalsoinvestigatesallegationsofviolationoftheState’spublicbiddinglawsinordertoprotecttheintegrityoftheprocessofawardingpublicworksconstructioncontracts.InadditiontoprosecutingemployerswhofailtofollowtheCommonwealth’swageandhourlaws,theFairLaborDivisionworkstoprotectemployeesfrombeingexploitedbyanemployerbyeducatingbothemployersandemployeesaboutthelawandemployees’rights.



Appendix B: Member Agencies

TheAttorneyGeneralaimstosetalevelplayingfieldforemployersandemployeesthroughouttheState.TheAttorneyGeneral’sspecificjurisdictiontoenforcetheCommonwealth’swageandhourlaws,bothcriminallyandcivilly,aswellasitsgeneraljurisdictiontoenforcecriminallaws,includinginsuranceandtaxlaws,larcenyandembezzlement,allowsittotakeaholisticapproachtoprosecutingcasesinvolvingtheundergroundeconomy.ItsbroadjurisdictionenablesittoworkinpartnershipwithfellowmemberagenciesontheJTFinordertoeffectivelyinvestigateandprosecutecases,aswarranted.For more information, visit: www.mass.gov/ago

Executive Office of Administration and FinanceDivision of Capital Asset Management and Maintenance (DCAMM)The DivisionofCapitalAssetManagementandMaintenance(DCAMM)ischargedwithprovidingprofessionalandcomprehensiveservicestostateagenciesinthefieldofpublicbuildingdesign,construction,maintenance,andrealestate.DCAMM’sscopeofservicesincludesplanning,design,construction,capitalrepairsandimprovements,assetmanagement,contractorcertificationandcompliance,leasing,acquisitionanddispositionofrealestate,andmaintenance.

DCAMMservestheJTFbyidentifyingDCAMM-certifiedcontractorswhohavebecomenon-compliantwithotherstateagencies’regulationsorrequirementsinanefforttobringthecontractorsbackintocompliancewithstatelawortodecertifyordebarsuchcontractorswhenappropriate.DCAMMutilizesinformationobtainedfromvariouspartneragenciesaspartofthecertificationprocessinordertomakeafinaldeterminationonwhetherthecontractormeetsthequalificationstobecertifiedtoperformpublicwork.For more information, visit: www.mass.gov/dcam

Department of Revenue (DOR)ThemissionoftheMassachusettsDepartmentofRevenueistoachievemaximumcompliancewiththetax,childsupportandmunicipalfinancelawsoftheCommonwealth.TheDepartmentisdedicatedtoenforcingtheselawsinafair,impartialandconsistentmannerbyprovidingprofessionalandcourteousservicetoallitscustomers. TheDepartmentisalsocommittedtotheobjectivesoftheUndergroundEconomyTaskForcetoenforceemployeeclassificationlawsthroughincreasedpublicawarenessandenforcement.Misclassificationofemployeesbyemployershasresultedinmillionsofdollarsinlosttaxrevenue.BothwiththeTaskForceandindependently,DORwillbeassigningmoreresourcestoemployeemisclassificationandotherwithholdingaudits. For more information, visit: www.mass.gov/dor

Supplier Diversity Office (SDO)SDOcreatesopportunitiesforminorityandwomenownedbusinessbygrowingthenumberofstateandfederallycertifiedbusinessesandofferingbusinessinsuranceandadvocacyprograms.For more information, visit: www.mass.gov/sdo

Executive Office of Public Safety and SecurityDepartment of Public Safety (DPS)TheDepartmentofPublicSafetyisalicensingandregulatoryagencywhosemissionistoreducetherisktolifeandpropertybypromotingsafetyinthedesign,construction,installation,inspection,operation,repairandalterationofboilers,pressurevessels,elevators,andbuildings.TheDPSlicensesindividualsinmanyareas,includingelevatormechanics,constructionsupervisorlicenses,firemanandengineeringlicenses,aswellaslicensesforsprinklerfitters,pipefittersandrefrigerationtechnicians,andhoistingoperators.InordertoensurecompliancewiththelawsoftheCommonwealth,theDepartmentiscommittedtosharingitsresourcesinacooperativeeffortwithotherstateagenciestoensurethatworkersintheseindustriesarenotexploitedbybusinessownersthroughmisclassificationorothermeansofskirtinglabor,taxandoccupationalsafetylaws. For more information, visit: www.mass.gov/eopss


Executive Office of Health and Human ServicesMassachusetts Office for Refugees and Immigrants (MORI)ThestatutorypurposeoftheMassachusettsOfficeforRefugeesandImmigrants(MORI)istopromotethefullparticipationofrefugeesandimmigrantsasself-sufficientindividualsandfamiliesintheeconomic,socialandciviclifeoftheCommonwealth.TheprimaryresponsibilityoftheofficeistoadministerthefederallyfundedrefugeeresettlementprograminMassachusetts,whichprovidesassistancetorefugees,suchascasemanagement,employmentservices(includingEnglishlanguagetraining),transitionalcashandmedicalassistance,healthscreening,andfostercareforunaccompaniedminors.MORIalsoadministersastate-fundedcitizenship-assistanceprogramtoassistlegalpermanentresidentsinMassachusettstobecomenaturalized UnitedStatescitizens.MORIservestheTaskForceinanadvisorycapacity,attendingTaskForcemeetingsuponinvitation;andprovidinginformationonunderstandingculturalissues,identifyingimmigrantcommunitygroupstofacilitateTaskForceoutreach,aswellasidentifyingtranslationresources,uponrequest.For more information, visit: www.mass.gov/ori

Massachusetts Department of Public HealthThemissionoftheMassachusettsDepartmentofPublicHealthistopreventillness,injury,andprematuredeath,toassureaccesstohigh-qualitypublichealthandhealthcareservices,andtopromotewellnessandhealthequityforallpeopleintheCommonwealth.DPHenvisionsaCommonwealthinwhichallpeopleenjoyoptimalhealth.DPHprovidesprogramstoaddressspecificdiseasesandconditionsandofferservicestoaddresstheneedsofvulnerablepopulations.DPHalsodevelops,implements,promotes,andenforcespoliciestoassurethattheconditionsunderwhichpeoplelivearemostconducivetohealthandenablepeopletomakehealthychoicesforthemselvesandtheirfamilies.For more information, visit: www.mass.gov/dph

Executive Office of Housing and Economic DevelopmentDivision of Banks (DOB)TheDivisionofBanks(DOB)isresponsibleforensuringasound,competitive,andaccessiblebankingandfinancialservicesenvironmentintheCommonwealth.DOBiscommittedtoprovidingeffectivefinancialandconsumerprotectionsupervisionoverregulatedentitiesthroughintra-andinter-agencycoordination.Understatute,theDOBistaskedwithchartering,licensing,andexaminingStateCharteredBanks,CreditUnions,TrustCompanies,MortgageBrokers,MortgageLenders,MortgageLoanOriginators,CheckCashers,CheckSellers,DebtCollectors,ForeignTransmittalAgencies,InsurancePremiumFinanceAgencies,MotorVehicleSalesFinanceCompanies,RetailInstallmentFinanceCompanies,andSmallLoanCompanies.For more information, visit: www.mass.gov/dob

Division of Professional Licensure (DPL)TheDivisionofProfessionalLicensure,undertheOfficeofConsumerAffairsandBusinessRegulation,oversees31boardsofregistrationthatlicenseandregulatemorethan370,000licenseesinsome50tradesandprofessions.DPLalsooverseesprivateoccupationalschools.DPL’smissionistoprotectthepublichealth,safety,andwelfarebylicensingqualifiedindividualsandbusinesseswhoprovideservicestoconsumers,andbyfairenforcementofthestatutesandregulationsoftheboards.Boardscanrevokeorsuspendalicenseafterinvestigationandadjudicationofcomplaints,andDPLworkswithparticipating.JointTaskForceagenciestoprosecuteunlicensedpracticecasesonbehalfofitsboards.For more information, visit: www.mass.gov/dpl

Office of Small Business and Entrepreneurship (OSBE)

TheOfficeofSmallBusinessandEntrepreneurship’smissionistocreatepoliciesandprogramstosupportsmallbusinessesandentrepreneursacrosstheCommonwealth.OSBEisthemostvaluableresourceforSmallBusinessCommunity,andutilizesthefollowingbusinessdevelopmenttools:SmallBusinessAssistanceAdvisoryCouncil,TechnicalAssistanceGrantsandOffice,andSmallBusinessDevelopmentCenters.OSBEisdedicatedtounderstandingsmallbusinessneeds,providingappropriateprograms,andadvocatingpolicytoenablegrowthandjobcreation.

Appendix B: Member AgenciesPage24


Office of the TreasurerAlcoholic Beverages Control Commission (ABCC)

The Alcoholic BeveragesControlCommissionregulatesthealcoholicbeveragesindustryinMassachusetts,directlylicensingthestatewideactivitiesofliquormanufacturers,transporters,wholesalers,andbrokers.TheABCCalsoregulatesinterstateandinternationalalcoholicbeveragebusinessesbyissuingcertificatesofcompliance.TheABCCinvestigatesapplicationsforlicenses,prosecutesviolationsofpertinentstatutesandregulations,andadjudicatesdisputesamongmembersoftheindustry.For more information, visit: www.mass.gov/abcc

Office of the Secretary of the CommonwealthCorporations Division

The CorporationsDivisionoftheSecretaryoftheCommonwealthWilliamFrancisGalvin’sOfficeistherepositoryforthepublicrecordsofapproximately200,000profitandnonprofitcorporationsandapproximately140,000limitedliabilityentitiesorganizedorregisteredtotransactbusinessintheCommonwealth.

AllcorporationsandcertainotherbusinessentitiestransactingbusinessintheCommonwealthandorganizedunderthelawsofadifferentstateorcountryarerequiredtofilearegistrationwiththeCorporationsDivision.ThoseforeigncorporationsorotherbusinessentitiestransactingbusinessintheCommonwealthwithoutfilingaregistrationwiththeCorporationsaresubjecttoseveralpenaltiespursuanttoMassachusettsGeneralLawsChapter156D,Section15.02.

In2013theCorporationsDivisionjoinedtheJTF.SincethattimetheDivisionhasassistedtheTaskForcebypursuingentitiesorganizedunderthelawsofotherstatesorcountriesthatfailtocomplywiththelawsoftheCommonwealthregardingtransactingbusinesswithinMassachusetts.

IndependentMassachusetts Commission Against Discrimination (MCAD)

TheMassachusettsCommissionAgainstDiscrimination(MCAD)isresponsibleforenforcementofMassachusetts’anti-discriminationlaws,includingtheFairEmployment,FairEducationandFairHousingPracticesActs,aswellastheMaternityLeaveandPublicAccommodationslaws,onbehalfofthepublic.TheLegislaturehasaffordedtheCommissionwithsignificantandcomprehensivepowerandauthoritytoinvestigate,conciliate,prosecuteandadjudicateclaimsofdiscrimination,incidenttoourprimarymandateofprotecting,preserving,andenhancingthecivilrightsofourcitizens. For more information, visit: www.mass.gov/mcad

Federal PartnersUnited States Department of Labor (USDOL)The missionoftheU.S.DepartmentofLaboranditsagenciesistofoster,promote,anddevelopthewelfareofthewageearners,jobseekers,andretireesoftheUnitedStates;improveworkingconditions;advanceopportunitiesforprofitableemployment;andassurework-relatedbenefitsandrights.SeveralofitsagenciesareJTFpartners:

•TheWageandHourDivisionenforcesFederalminimumwage,overtimepay,recordkeeping,andchildlaborrequirementsoftheFairLaborStandardsAct.ItalsoenforcestheMigrantandSeasonalAgriculturalWorkerProtectionAct,theFamilyandMedicalLeaveAct,andanumberofemploymentstandardsandworkerprotectionsasprovidedinseveralimmigrationrelatedstatutes.Additionally,WHDadministersandenforcestheprevailingwagerequirementsoftheDavisBaconActandtheServiceContractActandotherstatutesapplicabletoFederalcontractsforconstructionandfortheprovisionofgoodsandservices.For more information, visit: www.dol.gov/whd.



•UndertheOccupationalSafetyandHealthActof1970,employersareresponsibleforprovidingsafeandhealthfulworkplacesfortheiremployees.OSHA’sroleistoensuretheseconditionsforAmerica’sworkingmenandwomenbysettingandenforcingstandards,andprovidingtraining,educationandassistance,aswellasensuringprotectionsforwhistleblowersunderOSHAandseveralotherstatutes.For more information, visit: www.osha.gov.

•TheOfficeoftheSolicitor’smissionistomeetthelegalservicedemandsoftheentireDepartmentofLabor.ItfulfillsitsmissionbyrepresentingtheSecretaryofLaborandUSDOLagenciesinallnecessarylitigation,includingbothenforcementactionsanddefensivelitigation,andinalternativedisputeresolutionactivities;byassistinginthedevelopmentofregulations,standardsandlegislativeproposals;andbyprovidinglegalopinionsandadviceconcerningalltheDepartment’sactivities.TheRegionalSolicitor’sOfficeforRegion1islocatedinBoston,andcoversthesixNewEnglandstates.For more information, visit: www.dol.gov/sol.

•ThemissionoftheEmployeeBenefitsSecurityAdministrationistoassurethesecurityoftheretirement,healthandotherworkplacerelatedbenefitsofAmerica’sworkersandtheirfamilies.Itaccomplishesthismissionbydevelopingeffectiveregulations;assistingandeducatingworkers,plansponsors,fiduciariesandserviceproviders;andvigorouslyenforcingthelaw.For more information, visit: www.dol.gov/ebsa.

•ThepurposeoftheOfficeofFederalContractCompliancePrograms(OFCCP)istoenforce,forthebenefitofjobseekersandwageearners,thecontractualpromiseofaffirmativeactionandequalemploymentopportunityrequiredofthosewhodobusinesswiththeFederalgovernment. For more information, visit: www.dol.gov/ofccp.

National Labor Relations Board (NLRB)

TheNationalLaborRelationsBoardisthefederalagencythatenforcestheNationalLaborRelationsAct,alawthatappliestomostprivatesectoremployers.Federallawprotectstherightofemployeestoengageinorrefrainfromprotected,concertedactivitieswithotheremployeesindealingwiththeiremployerswithrespecttowage,benefits,andothertermsandconditionsofemployment.TheAgencyismostcommonlyassociatedwiththeprotectionofunionactivityandenforcingtherequirementthatwhereemployeeshavechosentoberepresentedbyaunion,thatunionsandemployersengageingoodfaithcollective-bargaining,buttheprotectionofconcertedemployeeactionisnotlimitedtounionsituations.TheActgivessubstantivelegalprotectionforgroupemployeeactionseekingtoengageemployerswithrespecttotheirwages,benefits,andothertermsandconditionsofemployment;therefore,itprovidesimportantprotectionstoemployeesengagedinself-helpeffortswithrespecttotheiremployment.Throughitsintakeandpublicinformationactivities,NLRBpersonnelfrequentlyencounterindividualswhohavesubstantiverightsprotectedbyoneormorememberagenciesoftheJTF. For more information, visit: www.nlrb.gov

Other PartnersInsurance Fraud Bureau (IFB)

TheInsuranceFraudBureauofMassachusetts(IFB)wasauthorizedbyMassachusettsstatutein1990tocriminallyinvestigatesuspectedfraudulentinsurancetransactions.TheIFBbecameoperationalin1991.ThejurisdictionoftheIFBwasexpandedeffectiveJanuary1,1992tospecificallyincludethecriminalinvestigationofworkers’compensationfraud,workers’compensationclaimfraud,andworkers’compensationpremiumevasioncasespresentedbymisclassificationofemployees—schemestoaffectexperiencemodificationorunreportedorunderreportedpayroll.Underexistinglaw,anyonewhoislicensedunderMassachusettsGeneralLaw(M.G.L.)Chapter175,exemptfromthelicensingrequirementsofM.G.L.c.175,orotherwiseengagedinthebusinessofinsurance,andwhobecomesawareofsuspectedinsurancefraud,isrequiredtoreportittotheIFB.Inadditiontoincarceration,therestitutionordersonworkers’compensationpremiumevasioncasestotalover$63million.

ReferralscanbemadethroughtheIFBwebsiteatwww.ifb.orgorviatheIFBhotline,1-800-32-FRAUD. For more information, visit: www.ifb.org




Appendix C: Common Interest Agreement


COMMON INTEREST AGREEMENT BETWEEN

PARTICIPATING AGENCIES OF THE U.S. DEPARTMENT OF LABOR AND

PARTICIPATING AGENCIES OF THE COMMONWEALTH OF MASSACHUSETTS

ThisAgreementismadeandenteredintobyandbetweenparticipatingagenciesoftheUnitedStatesDepartmentofLabor,specifically,theWageandHourDivision,theEmployeeBenefitsSecurityAdministration,theOfficeofFederalContractCompliancePrograms,andtheOccupationalSafetyandHealthAdministration(allrepresentedbytheOfficeoftheSolicitorandhereinaftercollectivelyreferredtoasthe“Department”),andparticipatingagenciesoftheCommonwealthofMassachusetts,specifically,theExecutiveOfficeofLaborandWorkforceDevelopment,theOfficeoftheAttorneyGeneral,theDepartmentofRevenue,theDepartmentofUnemploymentAssistance,theDepartmentofIndustrialAccidents,theDepartmentofLaborStandards,theMassachusettsCommissionAgainstDiscrimination,theAlcoholicBeveragesControlCommission,theDivisionofBanks,theDepartmentofPublicSafety,theDivisionofCapitalAssetManagement,andtheDivisionofProfessionalLicensure(hereinaftercollectivelyreferredtoas“TheCommonwealth”).TheDepartmentandtheCommonwealtharecollectivelyreferredtoas“theparties.”

Withthespecificandmutualgoalsofprovidingclear,accurate,andeasy-to-accesscomplianceinformationtoemployers,employees,andotherstakeholders,andofsharingresourcesandenhancingenforcementby,asappropriate,conductingcoordinatedenforcementactionsandsharinginformationconsistentwithapplicablelaw,thepartiesagreetoenterintothisAgreement.

THEREFORE,ITISMUTUALLYAGREEDTHAT:

Purpose

ThepartiesrecognizethevalueofestablishingacollaborativerelationshiptopromotecompliancewithlawsofcommonconcernintheCommonwealthofMassachusetts.ThepartiesenterintothisAgreementtomoreeffectivelyandefficientlycommunicateandcooperateonareasofcommoninterest.Thisincludes,butisnotlimitedtothefollowing:sharingoftrainingmaterials;providingemployersandemployeeswithcomplianceassistanceinformation;andconductingcoordinatedlawenforcementinvestigationsandsharinginformation,whereappropriateandtotheextentallowedbylaw,toprotectthewages,retirementincomesecurity,equalemploymentopportunity,unemploymentbenefits,workers’compensationentitlements,safety,andhealthofAmerica’sworkforce,andtoensurealevelplayingfieldforlaw-abidingbusinesses,andpropercompliancewithapplicabletaxandlicensinglaws.

Agency Responsibilities

TheDepartmentisresponsibleforadministeringandenforcingawiderangeoffederallaborlaws,includingtheFairLaborStandardsAct,theFamilyandMedicalLeaveAct,theMigrantandSeasonalAgriculturalWorkerProtectionAct,workerprotectionsprovidedinseveraltemporaryvisaprograms,theprevailingwagerequirementsoftheDavis-BaconandRelatedActs,theServiceContractAct,theEmployeeRetirementIncomeSecurityAct,theOccupationalSafetyandHealthAct,numerouswhistleblowerprovisionsoffederalstatutes,ExecutiveOrder11246,Section503oftheRehabilitationActof1973,andtheVietnamEraVeterans’ReadjustmentAssistanceActof1974.NothinginthisagreementlimitstheDepartment’senforcementoftheseandotherlaws.

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TheCommonwealthisresponsiblefor:

ExecutiveOfficeofLaborandWorkforceDevelopment(EOLWD)/JointEnforcementTaskForceontheUndergroundEconomyandEmployeeMisclassification(JTF)

•EOLWDisresponsiblefordirectingandoverseeingtheworkoftheDepartmentofUnemploymentAssistance,theDepartmentofIndustrialAccidents,theDepartmentofLaborStandards,andtheDepartmentofCareerServices.TheSecretaryofLaborandWorkforceDevelopmentservesasthechairofJTFaccordingtoMassachusettsExecutiveOrder499(E.O.499).

•AccordingtoE.O.499,JTFcoordinatesjointeffortstocombattheundergroundeconomyandemployeemisclassification,includingeffortsto:(a)fostercompliancewiththelawbyeducatingbusinessownersandemployeesaboutapplicablerequirements;(b)conductjoint,targetedinvestigationsandenforcementactionsagainstviolators;(c)protectthehealth,safetyandbenefitrightsofworkers;and(d)restorecompetitiveequalityforlaw-abidingbusinesses.

•AccordingtoE.O.499,infulfillingitsmission,JTF:

oFacilitatestimelyinformationsharingbetweenandamongTaskForcemembers,includingthroughtheestablishmentofprotocolsbywhichparticipatingagencieswilladviseorrefertootheragenciesmattersofpotentialinvestigativeinterest;

oIdentifiesthoseindustriesandsectorswheretheundergroundeconomyandemployeemisclassificationaremostprevalentandtargetTaskForcemembers’investigativeandenforcementresourcesagainstthosesectors,includingthroughtheformationofjointinvestigativeandenforcementteams;

oAssessesexistinginvestigativeandenforcementmethods,bothinMassachusettsandinotherjurisdictions,anddevelopsandrecommendsstrategiestoimprovethosemethods;

oEncouragesbusinessesandindividualstoidentifyviolatorsbysolicitinginformationfromthepublic,facilitatingthefilingofcomplaints,andenhancingtheavailablemechanismsbywhichworkerscanreportsuspectedviolations;

oSolicitsthecooperationandparticipationofdistrictattorneysandotherrelevantenforcementagencies,includingtheInsuranceFraudBureau,andestablishesproceduresforreferringcasestoprosecutingauthoritiesasappropriate;

oWorkscooperativelywithemployers,labor,andcommunitygroupstodiminishthesizeoftheundergroundeconomyandreducethenumberofemployeemisclassificationsby,amongothermeans,disseminatingeducationalmaterialsregardingtheapplicablelaws,includingthelegaldistinctionsbetweenindependentcontractorsandemployees,andincreasingpublicawarenessoftheharmcausedbytheundergroundeconomyandemployeemisclassification;

oWorkscooperativelywithfederal,commonwealth,andlocalsocialservicesagenciestoprovideassistancetovulnerablepopulationsthathavebeenexploitedbytheundergroundeconomyandemployeemisclassification,includingbutnotlimitedtoimmigrantworkers;

oIdentifiespotentialregulatoryorstatutorychangesthatwouldstrengthenenforcementefforts,includinganychangesneededtoresolveexistinglegalambiguitiesorinconsistencies,aswellaspotentiallegalproceduresforfacilitatingindividualenforcementefforts;and

oConsultswithrepresentativesofbusinessandorganizedlabor,membersoftheGeneralCourt,communitygroupsandotheragenciesconcerningtheactivitiesoftheTaskForceanditsmembersandwaysofimprovingitseffectiveness,includingconsiderationofwhethertoestablishanadvisorypanelunderthesecretaryoflaborandworkforcedevelopment.

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Attorney General’s Office, Fair Labor Division (AGO-FLD)

•TheAGO-FLDenforcestheCommonwealth’swageandhourlaws,bothcriminallyandcivilly,includingtheprevailingwage,minimumwage,paymentofwages,overtime,payrollrecordkeeping,employeemisclassification,tippooling,childlabor,Sundayandholidaypremiumpaylaws.

•TheAGO-FLDalsoinvestigatesallegationsofviolationoftheState’spublicbiddinglawsinordertoprotect theintegrityoftheprocessofawardingpublicworksconstructioncontracts.

•InadditiontoprosecutingemployerswhofailtofollowtheCommonwealth’swageandhourlaws, AGO-FLDworkstoprotectemployeesfrombeingexploitedbyanemployerbyeducatingbothemployers andemployeesaboutthelawandemployees’rights.

Department of Unemployment Assistance (DUA)

•TheDUAadministerstheunemploymentinsuranceprograminMassachusetts,providingtemporaryfinancialassistancetoworkerswholosetheirjobsthroughnofaultoftheirown.Fundingforunemploymentinsurancebenefitscomesfromcontributionspaidbythestate’semployers;nodeductionsaremadefromworkers’salaries.EmployerspayquarterlycontributionstotheMassachusettsDUA.

Department of Industrial Accidents (DIA)

•PursuanttoM.G.L.Chapter152,themissionoftheDIAistoadministertheCommonwealth’sWorkers’Compensationsystemandprovidepromptandfaircompensationtovictimsofoccupationalinjuriesandillness,andtoseethatmedicaltreatmenttoinjuredworkersisprovidedinatimelymannerwhilebalancingtheneedsofemployerstocontainworkers’compensationinsurancecosts.Additionally,DIAprovidesdisputeresolutionofworkers’compensationcasesthroughdueprocessandadjudicationandadministerstheSpecial,PrivateandPublicTrustFunds.

Department of Revenue (DOR)

•ThemissionofDORistoachievemaximumcompliancewiththetax,childsupport,andmunicipalfinancelawsoftheCommonwealth.DORisdedicatedtoenforcingtheselawsinafair,impartialandconsistentmannerbyprovidingprofessionalandcourteousservicetoallitscustomers.DORisalsocommittedtotheobjectivesofJTFtoenforceemployeeclassificationlawsthroughincreasedpublicawarenessandenforcement.

Division of Banks (DOB)

•ThemissionofDOBistoensureasound,competitive,andaccessiblebankingandfinancialservicesenvironment.DOBiscommittedtoprovidingeffectivefinancialandconsumerprotectionsupervisionoverregulatedentitiesthroughintra-andinter-agencycoordination.Understatute,theDOBistaskedwithchartering,licensing,andexaminingStateCharteredBanks,CreditUnions,TrustCompanies,MortgageBrokers,MortgageLenders,MortgageLoanOriginators,CheckCashers,CheckSellers,DebtCollectors, ForeignTransmittalAgencies,InsurancePremiumFinanceAgencies,MotorVehicleSalesFinanceCompanies,RetailInstallmentFinanceCompanies,andSmallLoanCompanies.

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Department of Labor Standards (DLS)

•DLSisresponsibleforthepromotionandprotectionofworkers’safetyandhealth,wagesandworkingconditions,andtosupportemployersandworkersintheutilizationofapprenticeshipasaworkforcedevelopmenttool.DLSprotectsworkersbymeansofeducationandtraining,workplacesafetyandhealthconsultationandassessment,occupationalinjuryandillnessdatacollectionandanalysis,andconsistentandresponsibleadministrationofitsstatutesandregulations.DLSoperatesthefollowingprograms:

oDivisionofApprenticeTraining o Prevailing Wage Program oMinimumWageProgram oEmploymentAgencyProgram oOn-siteConsultationProgram oAsbestosProgram oLeadProgram oOccupationalLeadPoisoningRegistry oMassachusettsWorkplaceSafetyandHealthProgram oOccupationalSafetyandHealthStatisticsProgram oIndustrialHygieneLaboratory oMineSafetyandHealthProgram

Division of Capital Asset Management (DCAM)

•DCAMischargedwithprovidingprofessionalandcomprehensiveservicestostateagenciesinthefieldofpublic-buildingdesign,construction,maintenanceandrealestate.DCAM’sscopeofservicesincludesplanning,design,construction,capitalrepairsandimprovements,assetmanagement,contractorcertificationandcompliance,leasing,acquisitionanddisposition,andmaintenance.

Alcoholic Beverages Control Commission (ABCC)

•ABCCregulatesthealcoholicbeveragesindustryinMassachusetts,directlylicensingthestatewideactivitiesofliquormanufacturers,transporters,wholesalers,andbrokers.ABCCalsoregulatesinterstateandinternationalalcoholicbeveragebusinessesbyissuingcertificatesofcompliance.TheABCCinvestigatesapplicationsforlicenses,prosecutesviolationsofpertinentstatutesandregulationsandadjudicatesdisputesamongmembersoftheindustry.

Massachusetts Commission Against Discrimination (MCAD)

•MCADisresponsibleforenforcingMassachusetts’anti-discriminationlaws,includingtheFairEmployment,FairEducationandFairHousingPracticesActs,aswellastheMaternityLeaveandPublicAccommodationslaws,onbehalfofthepublic.

•TheLegislaturehasaffordedMCADwithsignificantandcomprehensivepowerandauthoritytoinvestigate,conciliate,prosecuteandadjudicateclaimsofdiscrimination,incidenttoourprimarymandateofprotecting,preserving,andenhancingthecivilrightsofourcitizens.

Division of Professional Licensure (DPL)

•DPL,undertheOfficeofConsumerAffairsandBusinessRegulation(OCABR),overseesthestate’s29Boards ofRegistration,andregulatesmorethan40tradesandprofessions.

•Itsmissionistoprotectthepublichealth,safety,andwelfarebylicensingqualifiedindividualswhoprovideservicestoconsumersandbyfairenforcementsofstatutesandregulationsoftheboardsofregistration. Eachboardcanrevokeorsuspendalicenseafterinvestigationofseriouscomplaints.

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Department of Public Safety (DPS)

•TheDepartmentofPublicSafetyisalicensingandregulatoryagencywhosemissionistoreducetherisktolifeandpropertybypromotingsafetyinthedesign,construction,installation,inspection,operation,repairandalterationofboilers,pressurevessels,elevators,andbuildings.TheDPSlicensesindividualsinmanyareas,includingelevatormechanics,constructionsupervisorlicenses,firemanandengineeringlicenses,aswellaslicensesforsprinklerfitters,pipefitters,refrigerationtechnicians,andhoistingoperators.

Contacts

•EachparticipatingagencywilldesignateacontactpersonresponsibleforcoordinatingactivitiescoveredunderthisAgreement.

•EachparticipatingagencywilldesignatearepresentativetomeetannuallytoreviewareasofmutualconcernandthetermsandconditionsofthisAgreement.

Enforcement

Whereappropriateandtotheextentallowableunderlaw,

•AnyoralloftheparticipatingagenciesmayconductcoordinatedinvestigationsofcommoninterestperiodicallyintheCommonwealthofMassachusetts,asmutuallyagreedupon.

•Theparticipatingagencieswillmakereasonableeffortstocoordinatetheirrespectiveenforcementactivitiesandassisteachotherwithenforcement,totheextentpracticable.

•Theparticipatingagencieswillmakereferralsofpotentialviolationsofeachother’slaws.

Effect of Agreement

•ThisAgreementdoesnotauthorizetheexpenditureorreimbursementofanyfunds.NothinginthisAgreementobligatesanyparticipatingagencytoexpendappropriations,enterintoanyothercontract,orincurotherobligations.

•ByenteringintothisAgreement,thepartiesdonotimplyanendorsementorpromotionofthepolicies,programs,orservicesoftheother.

•NothinginthisAgreementisintendedtodiminishorotherwiseaffecttheauthorityofanyparticipatingagencytoimplementitsrespectivestatutoryfunctions.

•ThisAgreementcontainsallthetermsandconditionsagreeduponbytheparties.Nootherunderstandings,oralorotherwise,regardingthesubjectmatterofthisagreementshallbedeemedtoexistorbebindingupontheparties.Thisagreementisnotintendedtoconferanyrightuponanyprivatepersonorotherthirdparty.

•NothinginthisAgreementwillbeinterpretedaslimitingorsupersedingtheparticipatingagencies’normaloperations.Thisagreementalsodoesnotlimitorrestricttheparticipatingagenciesfromparticipatinginsimilaractivitiesorarrangementswithotherentities.

•ThisagreementwillbeexecutedinfullcompliancewiththePrivacyActof1974,andanyotherapplicablefederallawsandlawsoftheCommonwealth.

Exchange of Information

•TheDepartmentandtheCommonwealthendeavortocooperatewithothergovernmentagenciestothefullestextentpossibleunderthelaw,subjecttothegenerallimitationsthatanysuchcooperationmustbeconsistentwitheachparty’sownstatutoryobligationsandenforcementefforts.Itistheparties’viewthatsharingofinformation—includingcertaindocuments,factualmaterials,mentalimpressions,memoranda,interviewreports,research,andotherinformation,someofwhichmaybeprivileged—incasesofcommoninterestistotheparties’mutualbenefit.

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•ExchangeofsuchinformationpursuanttothisAgreementisnotapublicdisclosureundertheFreedomofInformationAct,5U.S.C.552.

•InformationthatisotherwisediscoverableandnotprivilegedshallnotbecomeprivilegedsimplybecauseitwassharedbetweenanyparticipatingagencyoftheDepartmentandanyparticipatingagencyoftheCommonwealth.

•Privilegedinformationmeansinformationthatmaybeexemptfromdisclosuretothepublicorotherunauthorizedpersonsunderstateand/orfederallaws,orotherwisemayproperlybewithheldfromdisclosure.Suchinformationmayincludebutisnotlimitedto:theidentitiesofpersonswhohavegiveninformationtothepartiesinconfidenceorundercircumstancesinwhichconfidentialitycanbeimplied;anyemployeestatementsinanyoftheparticipatingagencies’enforcementfilesthatwereobtainedundertheseconditions;informationconcerninginvestigativetechniquesorproceduresthatifdisclosedcouldlesseninvestigativeeffectiveness;internalopinionsandrecommendationsoffederalorstatepersonnel,including(butnotlimitedto)investigatorsandsupervisors;informationorrecordscoveredbytheattorney-clientprivilegeand/ortheattorneywork-productprivilege;personalinformationonlivingpersons;taxandchildsupportinformation;individuallyidentifiablehealthinformation;andconfidentialbusinessinformationandtradesecrets.Anyphysicalmaterialorotherdocumentcontainingsuchinformationshouldbeclearlymarked“privileged”beforeitisprovidedpursuanttothisAgreement.

•ConfidentialUnemploymentCompensation(UC)information,asdefinedin20CFR603.2(b),meansanyunemploymentcompensationinformation,asdefinedin20CFR603.2(j),requiredtobekeptconfidentialunder20CFR603.4oritssuccessorlaworregulation.

•Acknowledgingthatprivilegesandprotections(includingwithoutlimitationtheinvestigativefilesprivilege,informant’sprivilege,attorney-clientprivilege,workproductdoctrine,deliberativeprocessprivilege,andconfidentialityagreementsororders)mayapplytocertainsharedinformation,thepartieswishtopursuetheircommonbutseparateinterestswithoutwaivinganyprivilegeorprotectionthatmayapplytothatsharedinformation.

•WhenprivilegedinformationisshareditshallbeusedandaccessedonlybyauthorizedindividualsandonlyforthelimitedpurposesofcarryingoutactivitiespursuanttothisAgreementasdescribedherein.Theinformationshallnotbeduplicatedorfurtherdisclosedwithoutthewrittenauthorizationofthepartythatprovidedit,unlesstheinformationbecomespublicwithoutviolationofthisAgreementorunlesstheinformationisrequiredtobedisclosedbyCourtorderorotherlegalauthority.ThepartiesshallinstructallsuchauthorizedindividualsabouttheconfidentialityrequirementsunderbothapplicablestateandfederallawandtheCommonInterestAgreementitself,andaboutthepotentialsanctionsforunauthorizeduse,browsing,ordisclosureofprivilegedinformation.

•Intheeventthatthereisapublicproceeding,suchasatrial,inwhichprivilegedinformationmaybeusedortestimonyofeitherparty’semployeessought,promptnoticeshallbegiventotheotherpartytoenableittotakesuchaction,ifany,thatitdeemsappropriateunderthecircumstances.

•Subjecttoapplicablerequirementsoflaw,theparticipatingagenciesshalladheretothelimitationsplacedontheminanyrequesteddisseminationofCJIS/NCICdatatonon¬criminaljusticeagencies.

•Shouldeitherpartyreceivearequestorsubpoenathatwould,fairlyconstrued,seekproductionofprivilegedinformationthatitreceivedpursuanttothisAgreement,thepartyreceivingsucharequestorsubpoenashalltakereasonablemeasures,includingbutnotlimitedtoassertingthecommoninterestprivilege,toprecludeorrestricttheproductionofsuchinformation,andshallpromptlynotifythepartyprovidingsuchinformationthatsucharequestorsubpoenahasbeenreceived,sothatthepartyprovidingsuchinformationmayfileanyappropriateobjectionsormotions,ortakeanyotherappropriatesteps,toprecludeorconditiontheproductionofsuchinformation.

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•Neitherpartyshallhaveauthoritytowaiveanyapplicableprivilegeordoctrineonbehalfoftheotherparty,norshallanywaiverofanapplicableprivilegeordoctrinebytheconductofonepartybeconstruedtoapplytotheotherparty.

•TherequirementsofthisAgreement,asappliedtoallprivilegedinformation,shallsurviveallofthefollowing:(a)withdrawalbyanyparticipatingagencypartyfromthisAgreement;(b)terminationofthisAgreement,(c)finaldispositionofclaimsoractionswhetherbyjudgment,settlementorothermeansofdisposition.

•Inadditiontotherequirementsabove,confidentialunemploymentcompensationinformationmaybeexchangedonlysubjecttotheconfidentialityrequirementsof20CFR603.4,andanyotherapplicablelaws.Inadditiontotherequirementsabove,thetypesofconfidentialinformationreferencedinAppendixAmaybeexchangedonlysubjecttothecorrespondingconfidentialityrequirementsincludedinAppendixA.

Subjecttotheforegoingconstraints:

•Theparticipatingagenciesagreetoexchangeinformationonlawsandregulationsofcommonconcerntotheotherparticipatingagencies,asrequestedandtotheextentpracticableandallowablebylawandpolicy.

•Theparticipatingagencieswillestablishamethodologyforexchanginginvestigativeleads,complaints,andreferralsofpossibleviolations,totheextentfeasibleandallowablebylawandpolicy.

•Theparticipatingagencieswillexchangeinformation(statisticaldata)onincidenceofviolationsinspecificindustriesandgeographicareas,asrequestedandtotheextentpracticableandallowablebylawandpolicy.

ResolutionofDisagreements

•DisputesarisingunderthisAgreementwillberesolvedinformallybydiscussionsbetweenparticipatingagencyPointsofContact,orotherofficialsdesignatedbyaparticipatingagency.

PeriodofAgreement

•ThisAgreementbecomeseffectiveuponthesigningbyallparticipatingagencies,andwillexpire3yearsfromtheeffectivedate.ThisAgreementmaybemodifiedinwritingbymutualconsentofallparticipatingagencies.AnyparticipatingagencymaywithdrawfromparticipationinthisAgreementbygivingthirty(30)daysadvancewrittennoticepriortothedateofintendedwithdrawal.RenewaloftheAgreementmaybeaccomplishedbywrittenagreementofallparticipatingagencies.

AppendixA(ofCommonInterestAgreement)

•InaccordancewithM.G.L.c.14,§6andDOR’sTaxConfidentialityStatutes,M.G.L.c.62C,§§21and21B:

oConfidentialtaxinformationmustbesafeguardedinaccordancewiththebestpracticescontainedintheNationalInstituteofStandardsandTechnology(NIST)SpecialPublication800-53Revision2, “SecurityControlsforFederalInformationSystems”,Annex2,“Moderate-ImpactBaseline” (NIST800-53(ModerateLevel))(thisdocumentcanbefoundat:http://csrc.nist.gov/publications/PubsSPs.html)regardingthephysicalandtechnicalsecurityoftheDORInformation.

oofthisAgreementoruntilterminationofthisAgreement.Thebestpracticescontainedinthe NIST800-88Standardregardingthedestructionofelectronicorpapermediaandmagnetictapes;applicablestateandfederalstatutesandregulations,includingG.L.c.931;andtheMassachusettsStatewideRecordsRetentionSchedulemustbefollowed.

oAnypersonhavingaccesstothetaxinformationmustbeinformedofDOR’sconfidentialityrequirementsandthesanctionsforunauthorizeddisclosureandsignDOR’sconfidentialityacknowledgement.

oAccesstoconfidentialinformationmaynotbereleasedtoanythirdpartywithoutDOR’swrittenapproval.

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oDORreservestherighttoperiodicallyreviewtheuseoftheconfidentialtaxinformation,includingon-siteauditsandinspections,toreasonablydetermineandverifythattheconfidentialityoftheDORInformationismaintainedinaccordancewiththetermsofthisAgreement,andthattheinformationisusedonlyforauthorizedpurposes.

oDORmaydiscontinueorsuspendtheprovisionofthetaxinfo’nationimmediatelyifitdeterminesthatanytermofthisAgreementhasbeenviolated.

•InaccordancewithM.G.L.c.151:

oPrivilegedunemploymenttaxinformationshallbestoredinaplacephysicallysecurefromaccessbyunauthorizedpersons.

oPrivilegedunemploymenttaxinformationmaintainedinelectronicformatmustbestoredsothatunauthorizedpersonscannotobtaintheinformationbyanymeans.

oPrivilegedunemploymenttaxinformationshallbereturnedtotheagencyprovidingtheinformationwhennolongerneededforthepurposesofthisAgreementoruponterminationofthisAgreement.

oPriortoaccessingprivilegedunemploymenttaxinformation,partiesshallagreeto:(1)instructallpersonnelhavingaccesstotheprivilegedunemploymenttaxinformationaboutconfidentialityrequirementsandthesanctionsforunauthorizeddisclosure,(2)signanacknowledgementthatallpersonnelhavingaccesstotheprivilegedunemploymenttaxinformationhavebeensoinstructed,and(3)allowwithreasonablenoticeon-siteinspectionsbythepartyprovidingtheprivilegedunemploymenttaxinformation.

•InaccordancewithM.G.L.c.93H,agenciesshallsafeguardpersonalinformationofresidentsoftheCommonwealth.

Thisagreementisexecutedasofthe19thdayofSeptember,2011.

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For further information please contact:Heather Rowe, Interim Director, Joint Task ForceTelephone:617-626-6973Email:[email protected]

Melissa Butts,ProgramCoordinator,JointTaskForceTelephone:617-626-7103Email:[email protected]

Media contact: Ann Dufresne,DirectorofCommunications,EOLWDTelephone:617-626-7121Email:[email protected]

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COMMONWEALTH OF MASSACHUSETTSDeval L. Patrick, Governor

Rachel Kaprielian, Secretary, Executive Office of Labor and Workforce Development

Report Submitted by: Heather Rowe,

Director, Joint Task Force

1-877-96-LABOR www.mass.gov/lwd/jtf

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