The Massachusetts high court has applied a strict liability standard to the prevailing wage law, similar to standards applicable to other employment wage laws. The fact that one violation arose from a clerical error, discovered and rectified even before the citation issued, was no defense. A contractor can be liable for penalties even for unintentional violations. This is a cautionary tale for all contractors.
Lighthouse Masonry is an open shop masonry contractor. When working on public projects, Lighthouse pays workers according to the tasks being performed; a worker performing laborer's tasks is paid at the laborers' rate, and a worker performing mason's tasks is paid at the masons' rate. Lighthouse was cited for four violations, and one violation arose from a clerical error that had been discovered and corrected – with the proper wages paid to the worker – even before any citation was issued. In its challenge to all citations, Lighthouse argued that it should not be subject to a citation for a simple office error. But the court disagreed. The case is Lighthouse Masonry, Inc. v. Division of Administrative Law Appeals, and the decision of the Mass. Supreme Judicial Court is available here. (The decision mostly addresses an issue of administrative law.)
The court was succinct in addressing the clerical error: It noted that, similar to employee wage and independent contractor laws, "the prevailing wage law is a strict liability statute. It specifically provides for civil penalties to be imposed where a contractor or subcontractor has no intent to violate the law . . . Under a strict liability scheme, an employer's reason for the violation is irrelevant; the fact of the violation is sufficient for the penalty to issue."This article is for general information and does not include full legal analysis of the matters presented. It should not be construed or relied upon as legal advice or legal opinion on any specific facts or circumstances. The description of the results of any specific case or transaction contained herein does not mean or suggest that similar results can or could be obtained in any other matter. Each legal matter should be considered to be unique and subject to varying results. The invitation to contact the authors or attorneys in our firm is not a solicitation to provide professional services and should not be construed as a statement as to any availability to perform legal services in any jurisdiction in which such attorney is not permitted to practice.
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