For Immediate Release - June 18, 2010

Rhode Island Construction Company Agrees to Pay Over $66,000 in Restitution and Fines for Failing to Pay the Prevailing Wage

BOSTON - A Rhode Island construction company has agreed to pay over $66,000 in restitution and penalties for failing to properly pay the prevailing wage to its employees. Lockheed Window Corporation, based in Pascoag, Rhode Island, and its President, Michael Kosiver, of Foster, Rhode Island, were cited by AG Coakley's Office for failing to pay the prevailing wage and failing to submit true and accurate certified payroll records to the awarding authorities at 26 Massachusetts public works construction projects. As a result of the citations, Kosiver and his company will pay over $56,000 in restitution to 22 employees, and a $10,000 penalty to the Commonwealth.

"In these especially tough economic times, workers on public projects deserve to be paid properly according to the law," said AG Coakley. "Our office will continue to pursue businesses that fail to pay their employees properly to both ensure that all workers receive the proper compensation for their hard work and to ensure all businesses play by the same set of rules in the marketplace."

In January 2008, the Attorney General's Fair Labor Division began an investigation into Lockheed's payment practices after receiving complaints alleging that the company failed to pay the proper prevailing wage rate to employees who were installing windows at the Jeremiah Burke High School, a public works project in Dorchester. The company conducted a self-audit of its payroll records and based on a review of those records, investigators discovered that during work performed at 26 public works projects from September 2006 through February 2009, the company failed to pay the proper prevailing wage rate to 22 employees who were installing windows.

The Prevailing Wage and Records Keeping Laws apply to all construction work performed on public works projects in Massachusetts. The Prevailing Wage Laws allow all contractors bidding on public works projects to enjoy a "level playing field" by standardizing the rate of pay the workers will earn. The Record Keeping Laws allow state agencies to monitor the spending of taxpayer monies on public construction projects.

Workers who believe they have been misclassified or that their rights have been violated are strongly urged to call the Attorney General'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 Miranda S. Jones and investigated by Investigators Nuno R. Fontes Montrond and Dan Cullinane, all of Attorney General Coakley's Fair Labor Division.