Mass. Cracks Down On Workplace Fraud

Massachusetts collected nearly $1.5 million in fines and unpaid taxes in the first year of a crackdown on workplace fraud.

More than 500 people called a new state tip-line to report labor abuses. The referral line was established a year ago at the same time as a state task force aimed at addressing workplace fraud and misclassification.

Most of the calls came from people in the service industry, construction and retail. They complained that their employers were not paying them the right wage or were not paying unemployment taxes and workers compensation.

"There's a lot of honest businesses out there that are finding it very difficult to compete because their competition is flouting labor, licensing and tax laws," said Department of Labor Director George Noel, who leads a task force on the issue. He said he wants to level the playing field for workers and businesses.

The complaints led state agencies to temporarily bar a number of businesses from future government contracts.

This program aired on June 18, 2009. The audio for this program is not available.


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