Business opposition to “Wage Theft” bill mounting

Boston, MA The Associated Subcontractors of Massachusetts has joined with 13 other major business organizations in opposing the so-called “Wage Theft” bill, S.2207, which has broad support on Beacon Hill and has been gaining public attention in recent weeks.   The bill, which is currently in the Senate Ways & Means Committee, is designed to protect workers and ensure they get paid – but it goes too far.   

Instead of targeting employers that cheat on wages, S.2207 goes after companies that do business with them. It would effectively make every employer in the Commonwealth vicariously liable for wage violations committed by other companies that they contract with for any kind of labor or services – even if they had no knowledge of any wage violations by those companies.  Not only would they have to pay the lost wages of the cheating company’s workers, but triple damages, too.   It’s guilt by association at its worst. 

Wage theft legislation has been implemented in a number of other states in recent years – most recently in Rhode Island, Oregon and the City of Philadelphia – but legislation that has passed elsewhere is not nearly as harsh and unreasonable as what is being proposed in S.2207.  

Massachusetts already takes the lead in protecting worker rights, with some of the strongest wage and hour laws in the country.  Together, ASM and the business coalition is working to persuade the Legislature to focus on better enforcement of existing laws (of which there are many), and go after wage cheaters directly.   A bill that punishes innocent companies is not only wrong, it would strike a blow to the Massachusetts economy.