A Texas-based waste disposal company has been cited for more than $376,000 in restitution and penalties for violating the Commonwealth's prevailing wage laws, Attorney General Martha Coakley said today.
Waste Management of Massachusetts Inc., also known as Waste Management, was cited for charging employees for health-care coverage they did not receive, Coakley said.
"This company failed to properly calculate and pay the prevailing wage for employees who opted out of its health and welfare plans," she said. "Employees who opt out of these plans must be paid the full prevailing wage."
Waste Management provided solid waste and recyclable material collection services to 43 Bay State communities from June 2008 through June 2011. Coakley's investigation revealed the company made deductions from the prevailing wage for several employees who had opted out of one or more of the health and welfare plans offered by Waste Management.
Once notified of the violations, Waste Management fully cooperated with the investigation, and has agreed to pay back 56 workers for the costs of unwanted benefits that had been deducted from their wages, Coakley said.
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