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July 4, 2011

AIM Lobbies For Easing Of Employment Law Violations

Members of the Associated Industries of Massachusetts are hoping a small group of Beacon Hill legislators will include language in next year's state budget that will lighten sanctions on companies that have been found in violation of labor and employment laws.

The statewide business advocacy group has been aggressively lobbying members of the state Legislature to enact Treble law reforms, which have to do with businesses that are found to be in noncompliance with various types of labor laws, including unemployment insurance, wage and hour regulations, overtime pay, health insurance, independent contractor status and others.

AIM believes that the state's current system for fining businesses that are found in violation of the laws are unfair because they do not account for involuntary mistakes that businesses may make when attempting to adhere to what the organization calls a confusing law.

"This is a minor change to the statute that would restore some discretion to the process," said John Regan, AIM's senior vice president for government affairs.

Under current regulations, if a business is found in be in violation of Treble Laws, it is automatically issued a stop-work order and a fine. A business can appeal the violation.

AIM is advocating for each situation of an employment law violation to be evaluated on a case-by-case basis by a judge. Regan said there are too many circumstances when a business is fined by the state for an involuntary violation of a law.

"Honest mistakes can be made, and if they are there should be a remedy," he said. "What happens now is that damages are automatic, there is no discretion."

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