For Immediate Release - October 17, 2012

Texas Trash Hauling Company Cited More Than $376,000 in Restitution and Penalties for Prevailing Wage Violations

Company Allegedly Charged Employees for Health Care Coverage They Did Not Receive

BOSTON – A Texas based waste disposal company has been cited more than $376,000 in restitution and penalties for violating the Commonwealth’s prevailing wage laws, Attorney General Martha Coakley announced today.

Waste Management of Massachusetts, Inc. (Waste Management), has been cited for charging employees for health care coverage they did not receive.

“This company failed to properly calculate and pay the prevailing wage for employees who opted out of its health and welfare plans,” AG Coakley said. “Employees who opt out of these plans must be paid the full prevailing wage.”

From June 2008 through June 2011, Waste Management provided solid waste and recyclable material collection services to 43 communities in the Commonwealth. The AG’s investigation revealed that Waste Management made deductions from the prevailing wage for a number of employees who had opted out of one or more of the health and welfare plans offered by the company. Once notified of the violations, Waste Management fully cooperated with the investigation by the AG’s Fair Labor Division.

Waste Management has agreed to pay back 56 employees for the costs of unwanted benefits that had been deducted from their wages. In total, the company has agreed to pay more than $376,000 in restitution and penalties.

The AG’s Fair Labor Division is responsible for enforcing the prevailing wage laws in the Commonwealth. Workers who believe they may not have been paid the appropriate wages are encouraged 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:

This matter was handled by Assistant Attorney General Barbara Dillon DeSouza and was investigated by Inspector Brian Davies, both of AG Coakley’s Fair Labor Division in the Western Massachusetts Regional Office.


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