For Immediate Release - March 22, 2010

Former Brockton Construction Company to Pay $162,000 for Violations of the Massachusetts Overtime Law

BOSTON - Attorney General Martha Coakley's Office has reached a settlement agreement with Diaz Construction, formerly of Brockton, now of Avon, and its president, Leonel Diaz, age 47, of Bridgewater, to resolve allegations that the company violated the Commonwealth's wage and hour laws. Under the agreement, Diaz will pay $142,000 in restitution to 129 former and current employees and a $20,000 penalty to the Commonwealth.

In June 2008, the Attorney General's Fair Labor Division began an investigation into the employment practices of Diaz Construction after receiving complaints from former Diaz Construction employees alleging that they had not been paid the proper rate for overtime pay. Throughout the investigation, Diaz and his company cooperated fully and provided the payroll records for the period between July 2006 and June of 2008 to the Attorney General's Office. A self-audit of the payroll records by the company revealed that Diaz had unintentionally failed to pay his employees time-and-a-half for overtime hours worked between July 2006 and May 2008.

Under the Massachusetts overtime law, most employers in the Commonwealth are required to pay employees time-and-a-half for any hours over 40 they work per week. The Attorney General's Fair Labor Division is responsible for enforcing the prevailing wage, minimum wage and overtime laws, and the payment of wages laws in the Commonwealth. Workers who feel that these laws have been violated in their workplace are urged to call the Office's Fair Labor Hotline at (617) 727-3465. More information about the wage and hour laws is also available in multiple languages at the Attorney General's Workplace Rights website:

The matter was handled by Assistant Attorney General Lillian Hirales and Investigator James P. Coughlin, both of the Attorney General's Fair Labor Division.