A Watertown, Massachusetts roofing company and its owners have been arraigned on charges they allegedly failed to disclose millions of dollars in misclassified subcontractor payroll and failed to pay the prevailing wage, Attorney General Martha Coakley’s Office announced.
Shaun Bryan and Antoinette Capurso-Bryan, of Newton, and their company, Newton Contracting Company, Inc., of Watertown, were arraigned on the following charges:(WCxKit)
Shaun Bryan, 47, of Newton
Workers Compensation Premium Evasion (4 counts)
Unemployment Contribution Evasion (12 counts)
Misclassification of Employees as Independent Contractors (4 counts)
Failure to Pay the Prevailing Wage
Newton Contracting Company Inc., of Watertown
Workers Compensation Premium Evasion (4 counts)
Unemployment Contribution Evasion (12 counts)
Misclassification of Employees as Independent Contractors (4 counts)
Failure to Pay the Prevailing Wage
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Antoinette Capurso-Bryan, 47, of Newton
Misclassification of Employees as Independent Contractors (4 counts)
Failure to Pay the Prevailing Wage
Authorities began an investigation into the Bryans and their company in late 2008, after the JTF received complaints that Newton Contracting was misclassifying part of its workforce. The Attorney General’s Office also received a complaint that Newton Contracting had misclassified its roofing employees as laborers at the Suffolk County Jail Project and consequently failed to pay their employees the prevailing wage rate.
The EOLWD’s Division of Unemployment Assistance (EOLWD\DUA) conducted a compliance audit of Newton Contracting’s payroll records in early 2009. The EOLWD\DUA determined that Newton Contracting misclassified multiple employees as independent contractors and consequently failed to disclose to the EOLWD\DUA more than $2.4 million in misclassified subcontractor payroll for each quarter during 2006 through 2008. The EOLWD\DUA assessed more than $52,000 in additional unemployment contributions, including interest, against Newton Contracting.
During this time the IFB began an investigation of four of Newton Contracting’s worker’s compensation policies covering July 1, 2005, through July 1, 2009. The IFB discovered that the company allegedly misclassified half of its workforce as subcontractors. The IFB’s investigation further revealed that during its annual workers comp audits, Shaun Bryan allegedly failed to disclose to the auditor more than $3.4 million of Newton Contracting’s misclassified subcontractor payroll over the course of four policy periods.
The AG’s Fair Labor Division received a complaint that in 2009 Newton Contracting’s employees performing roofing work at the Suffolk County Jail Project were misclassified as laborers. The prevailing wage rate for roofing work was $53.86. Newton Contracting paid the workers $44.10 hour. In 2010, Newton Contracting paid two employees more than $5,000 in restitution for the misclassification and consequent failure to pay the prevailing wage violation.
A Suffolk County Grand Jury returned indictments against all three defendants on Dec. 19. The defendants were arraigned in Suffolk Superior Court where each pleaded not guilty and were released on personal recognizance.(WCxKit)
The defendants were to be in court Jan. 6, 2012 for further proceedings.
Author Robert Elliott, executive vice president, Amaxx Risk Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He is an editor and contributor to Workers Compensation Management Program: Reduce Costs 20% to 50%. Contact: [email protected].
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