Governor Patrick Signs Workers’ Compensation ‘Private Right of Action’ Bill Into Law

www.massaflcio.org - August 10, 2010

Bill allows three individuals, workers or contractors to sue a cheating contractor to ensure that they are paying the same premiums that all other employers must legally pay.

The recently concluded 2009-2010 session of the Massachusetts legislature, which too-often forced workers on the defensive against attacks on their most basic rights and came up short on vital job-creating measures, did include at least one bright spot in its final days as Governor Patrick signed ‘An Act Further Regulating Workers’ Compensation,’ aka the Workers’ Comp Private Right of Action (PRA) Bill on Tuesday, August 10th.

The enactment of the Private Right of Action bill is a significant victory for the Labor Movement and all honest employers in the commonwealth, as the new law will finally hold accountable employers who cheat on their workers’ compensation insurance premiums and level the playing field for honest employers who play by the rules. Cheating on workers’ comp is prevalent in many industries, but especially so in the construction industry. The Private Right of Action bill allows three individuals, workers or contractors to sue a cheating contractor to ensure that they are paying the same premiums that all other employers must legally pay. Click here to view a fact sheet on the bill.

Massachusetts AFL-CIO President Robert Haynes lauded the bill’s passage, saying, “Years and years of work on this issue have finally paid off, and honest employers in the commonwealth now have another valuable tool in their arsenal to fight cheating contractors who essentially steal work by submitting artificially deflated bids.” He continued, “It is thanks to the legislative advocacy of union members in the building trades, and especially to Attorney Mickey Long and the leadership of the Iron Workers District Council and Local 7, who saw this bill through several legislative sessions and now to fruition.”

Attorney Mickey Long, Director of the Litigation Division for the Iron Workers District Council of New England, whose name was virtually synonymous with this bill due to his fervent and longtime advocacy, said, “Honest businesses and their workers no longer have to sit idle and depend only on government to stop dishonest businesses that underbid by cheating on workers’ compensation payments. This cheating hurts union members and all workers, particularly in the construction, janitorial, and service sectors.”

The Massachusetts AFL-CIO and its affiliate unions made passage of the PRA bill a legislative priority during the 2009-2010 session. The organizing effort of the Massachusetts AFL-CIO and its affiliates did not go unnoticed by lawmakers. These efforts included union members making lobbying visits to lawmakers, as well as making phone calls and writing letters. A major push was made on May 11th as dozens of union members visited their own legislators as well as those on the House Ways & Means Committee to help move the bill towards an up-or-down vote in the House. The bill was first passed in the state Senate before passing the House just prior to the end of the legislative session.

“Now, workers and their employers have the power to sue the cheating businesses that pay “under-the-table” wages, misclassify employees as independent contractors, and fail to properly pay the right premium code for workers compensation coverage,” said Long. “Those who think they have to cheat-to-compete will soon discover that, in Massachusetts, the displaced workers and business have the power to make cheaters face certain and serious financial loss.”