- Office of Attorney General Maura Healey
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Emalie Gainey
Boston — A Lawrence asbestos company and its president have been cited more than $300,000 for intentionally failing to pay the proper prevailing wage rate or overtime to its employees for work performed on public projects, Attorney General Maura Healey announced today. The public projects included asbestos removal at elementary schools, public housing authorities and universities.
The AG’s Office issued three citations, all with specific intent, against MJ Environmental, Inc. and president Jose I. Pena for failure to pay prevailing wage (subsequent violation), failure to pay overtime, and failure to submit true and accurate weekly certified payroll records to the awarding authorities (subsequent violation). Pena has been cited in the past by the AG’s Office for similar violations.
“This employer received public funds to remove asbestos from elementary schools and other public buildings, but failed to follow the law and pay workers properly,” said AG Healey. “We need to ensure that this critical work, to safely remove dangerous asbestos, is done by responsible, law-abiding companies.”
MJ Environmental is an asbestos removal company based out of Lawrence. Its president, Pena, previously owned Environmental Source Corp. (ESC), a now-defunct asbestos removal company also based in Lawrence.
In 2008, the AG’s Fair Labor Division entered into a civil settlement with ESC and Pena, which included citations for intentional failure to pay prevailing wage and related records violations, wherein ESC agreed to pay more than $12,000 in restitution and penalties.
The AG’s Office began a subsequent investigation into Pena and MJ Environmental after a proactive compliance check revealed alleged violations.
The AG’s investigation determined that between June 2012 and January 2014, MJ Environmental failed to pay the proper prevailing wage rate to 62 workers. According to the certified payroll records and project records produced by Pena, the workers were classified as hazardous waste/asbestos removers, but they were not actually paid at the proper rate for that classification.
Under the Massachusetts Prevailing Wage Law, contractors and subcontractors engaged in public construction projects must pay their employees a special minimum wage, which is based on the occupational classification for the type of work the employees perform.
In total, Pena and MJ Environmental failed to pay the required prevailing wage rate on the following 19 public construction projects:
- City of Boston – Callahan Tunnel Vent Building;
- City of Brookline – Pierce School Auditorium;
- Brockton Housing Authority – Brockton Housing Washburn;
- Town of Canton – Galvin Middle School;
- Town of Canton – Lt Peter M Hansen Elementary School;
- Division of Capital Asset Management – MA College of Liberal Arts – Bowman Hall Renovation;
- Lowell Housing Authority – Francis Gatehouse;
- City of Mansfield – Robison Elementary;
- Town of Medfield – Wheelock School;
- Town of Oxford – Oxford Middle School;
- Quincy Housing Authority – Louis George Apartments;
- City of Springfield – Margaret C. Ells School;
- City of Springfield – Lynch Elementary School;
- UMass-Amherst – Grayson and Field Halls Window Replacement;
- City of Worcester – May Elementary School;
- City of Worcester – New Magnet School;
- City of Worcester – New Citizens School;
- City of Worcester – Lakeview Elementary; and
- Worcester State University – Learning Resource Center, Overclad
The total value of these public contracts exceeds $1.9 million.
The investigation further revealed that Pena and MJ Environmental also intentionally failed to pay overtime to 27 employees on five separate occasions for work performed on two projects—the City of Springfield’s Margaret C. Ells School project and the Massachusetts College of Liberal Arts’ Bowman Hall project. Pena purposely attempted to conceal his employees’ overtime hours worked from authorities.
The state’s overtime law requires employers to pay qualifying employees time and one half their regular rate of pay for all hours worked over 40 in a work week.
As a result of the investigation, the AG’s Office determined that in total 65 employees were impacted by these prevailing wage and overtime violations. The AG’s Office cited Pena and the company $318,715 in total restitution and penalties.=
Workers who believe that their rights have been violated in their workplace can also call the office’s Fair Labor Hotline at (617) 727-3465. More information about the state’s wage and hour laws is also available in multiple languages at www.mass.gov/ago/fairlabor.
This matter is being handled by Assistant Attorney General Drew Cahill and Investigator Tom Lam, both of AG Healey’s Fair Labor Division.
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