Canton Contractor Must Pay $310k For Not Paying Employees OT Pay

CANTON, MA — A federal court has ordered three Canton-based construction companies to pay $310,000 in back wages and damages to 19 employees who were improperly denied overtime pay.

The U.S. Department of Labor had found that the three companies, Capone Bros. Inc., Capco Equipment Corp., American Earth Products, and their owner Charles L. Capone were in violation of the Fair Labor Standards Act.

After an investigation by its Wage and Hour Division, the department found that Charles Capone specifically violated the overtime requirements of the Fair Labor Standards Act willfully.

The department claims that Capone Bros. failed to pay affected employees time and a half of their regular pay rates when they worked more than 40 hours in their workweek.

The investigation instead found they banked employees' overtime hours and paid out the hours without any overtime premium, and failed to keep accurate records of employees' work hours.

“When employers violate the Fair Labor Standards Act willfully, they not only cheat their employees, they place law-abiding businesses at a competitive disadvantage,” said Wage and Hour Division District Director Carlos Matos in Boston. “We encourage other employers to heed the results of this case, review their pay practices to ensure they comply with the law and contact the Wage and Hour Division with any questions they may have so that they can prevent violations like those found in this case.”

In separate ongoing litigation, the department is seeking an order permanently preventing defendants Capone Bros. Inc. and Charles L. Capone from retaliating against former and current employees who helped with the division’s investigation and an order awarding appropriate damages to affected employees.