Recent audits of subcontractors at the Boston Marriott Copley Place renovation project uncovered more than $1.17 million in unreported wages, 63 misclassified employees, and $85,907 in unpaid unemployment insurance (UI) taxes. In addition, three companies received stop work orders for failing to provide required workers’ compensation coverage, resulting in $7,950 in fines.
The audits were conducted by the Patrick-Murray administration’s Joint Enforcement Task Force on the Underground Economy and Employee Misclassification and the Executive Office of Labor and Workforce Development. Investigators discovered $587,249 in misclassified 1099 wages and $584,287 in unreported W-2 earnings, for a total of $1,171,536 in unreported wages. The findings included:
- One company that illegally self-elected out of UI contributions;
- Six companies that misclassified workers as contractors instead of employees;
- Seven companies that failed to report wages;
- Three companies that had outstanding delinquencies;
- Three companies that failed to register with the Department of Unemployment Assistance (DUA); and
- One company that failed to file quarterly reports.
The largest violators were a company that misclassified 28 workers and failed to report over $410,000 in wages and one that neglected to register with DUA and failed to report $462,081 in W-2 wages.
Another contractor on the same worksite was cited in July for underpayment of $31,000 in wages.