New Framingham Wage Theft Law May Also Protect Taxpayers

FRAMINGHAM, MA — Framingham is about to join the handful of Massachusetts communities with a wage theft ordinance, a measure meant to protect workers — but also local tax revenue.

Framingham's ordinance, granted initial City Council approval Tuesday night in a unanimous vote, would apply to any taxpayer-funded project valued at $250,000 or more, and to projects that receive tax breaks from the city. Wage theft typically happens when workers are paid off-the-books while working at construction sites.

The ordinance is partially rooted in an apartment project whose developers asked for — and were denied — a tax increment financing (TIF) package in 2019. When the developer of the Bancroft Building asked for the TIF, union leaders highlighted safety problems at the job site. TIF agreements typically allow developers to pay a reduced amount of taxes in exchange for improving a blighted or vacant property.

Under the new ordinance, contractors on TIF projects would be required to classify workers as employees, not independent contractors. The law would also require contractors to prioritize hiring people from the Framingham area, and establish a city Worker Protection Advisory Committee to review any complaints from local job sites.

Related: Union, Elected Officials To Protest At Framingham Hotel Project

Steve Joyce, a carpenters union representative, called wage theft a "plague" on the construction industry in Massachusetts. Not only does it leave workers vulnerable, but wage theft siphons tax dollars away from the community, he said. Only about nine other communities in Massachusetts have similar wage theft laws, including Boston, Springfield, Somerville and Quincy.

"Imagine working all day and never receiving a paycheck," Joyce said in an April 19 memo to Framingham councilors. "Or working in dangerous conditions and not earning what you should be paid for a job well done."

The wage theft ordinance was first approved in District 4 Councilor Michael Cannon's Economic Development Subcommittee. Cannon said Tuesday the ordinance would ensure that developers and contractors "know people are watching" healthy safety issues at construction sites.

The Framingham wage theft ordinance will require a second vote at an upcoming meeting before it heads to Mayor Yvonne Spicer for a signature.