For Immediate Release - March 04, 2011

Malden Electrical Company Agrees to Pay Almost $62,000 in Restitution and Penalties for Unlawful Deductions and Record Keeping Violations

BOSTON - A Malden electrical company has agreed to pay nearly $62,000 in restitution, penalties and fines for making unlawful deductions from employees' wages and for failing to submit true and accurate certified payroll records to seven awarding authorities at public construction projects in Massachusetts, Attorney General Martha Coakley's Office announced today.

John F. Spadafora, age 45 , of Malden, and his company, All-Tech Electric, Inc. (All-Tech), have agreed to pay $5,000 in fines and a total of over $53,700 in restitution to 15 employees for the wage violation. In addition, Spadafora and All-Tech have agreed to pay $3,000 in fines for the failure to submit true and accurate certified payroll records to the local awarding authorities.

"Every worker employed on a public project in Massachusetts must be paid properly and recorded for payroll records under the law," AG Coakley said. "Not only were the actions of the company illegal, they took money out of these workers' pockets for services that they did not receive."

In March 2010, the Attorney General's Fair Labor Division received a complaint alleging that Spadafora and All-Tech were deducting the cost of health insurance benefits from an employee's wage. According to the complaint, the employee did not have health insurance through All-Tech. All-Tech agreed to perform a self-audit covering a three-year time period. Following the self-audit, the Attorney General's Office determined that Spadafora and All-Tech failed to pay over $53,700 in wages to 15 employees due to wrongful deductions and, as a result, failed to submit true and accurate certified payroll records for work performed at public construction sites. The sites included projects in Chelsea, Medford, Beverly, Lynn, Malden, Cambridge and Revere.

The Attorney General's Office is responsible for enforcing the laws regulating the payment of wages, overtime and misclassification of employees in the Commonwealth. 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 case was handled by Assistant Attorney General Miranda Jones and investigated by Investigator Nuno R. Fontes Montrond, both of AG Coakley's Fair Labor Division.