For Immediate Release - July 14, 2011

Sharon Couple Cited More Than $58,000 for Not Properly Paying Employees

Companies Also Misclassified Workers as Independent Contractors

BOSTON - A Sharon husband and wife who own insulation companies in Rhode Island and Sharon, respectively, have been cited more than $58,000 in restitution and fines for failing to pay the prevailing wage, misclassifying workers as independent contractors, and record keeping violations, Attorney General Martha Coakley's Office announced today.

"All workers on public construction projects in the Commonwealth deserve to be paid what they are rightfully owed under the law, said AG Coakley. "Any employer that has a state or municipal contract must abide by the rules, which includes properly classifying their employees in their records."

Alexander Shlepakov, age 51, owner of Padi USA, Inc. (Padi), located in Providence, Rhode Island, has been cited for willfully failing to pay the prevailing wage to 10 employees at seven public works construction projects; willfully misclassifying seven employees as independent contractors; willfully failing to submit true and accurate certified payroll records to the awarding authorities; and failing to keep true and accurate payroll records. After receiving complaints, investigators from the AG's Fair Labor Division reviewed Padi's payroll records and discovered that Shlepakov and his company owe more than $12,700 in wages to the affected employees. Shlepakov and his company must also pay a $12,750 fine to the Commonwealth.

The AG's Office also cited Shlepakov's wife, Tatiana Shlepakov, age 37, and her company Elad Industrial Insulation, Inc. (Elad), located in Sharon, for willfully failing to pay the prevailing wage to two employees on public construction projects; willfully failing to submit true and accurate certified payroll records to awarding authorities; misclassifying two employees as independent contractors and failing to pay timely wages. Tatiana Shlepakov and her company were cited for failing to pay employees $19,515.15 in wages. They have since paid $18,125.25 directly to one employee. Tatiana Shlepakov and her company are also ordered to pay a $12,250 fine to the Commonwealth.

The Massachusetts Employee Misclassification Law provides that an individual performing any service shall be considered to be an employee unless: (1) the individual is free from control and direction in connection with the performance of the service, both under his or her contract for the performance of service and in fact; and (2) the service is performed outside the usual course of the business of the employer; and, (3) the individual is customarily engaged in an independently established trade, occupation, profession or business of the same nature as that involved in the service performed.

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 at www.massworkrights.com.

The case was handled by Assistant Attorney General Miranda S. Jones and investigated by Investigator James P. Coughlin, both of AG Coakley's Fair Labor Division.

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