BOSTON – As a result of lengthy civil contempt litigation by the U.S. Department of Labor against two Massachusetts construction companies and their officers, the U.S. District Court for the District of Massachusetts has approved the distribution of $1.8 million from court-ordered real estate sales and additional funds to 478 workers who were employed by Force Corp., AB Construction Group Inc., Juliano Fernandes and Anderson dos Santos.
After an investigation by the department’s Wage and Hour Division found that the companies, Fernandes, and dos Santos had misclassified the affected employees as independent contractors, the department obtained a 2016 consent judgment and order, which restrained the defendants from withholding $1,179,842.55 in back wages and ordered them to pay an equal amount in liquidated damages, plus interest.
After the defendants failed to comply with certain terms of the consent judgment and order, the department secured a 2020 contempt order appointing a special master to examine the finances of all four defendants, Fernandes’s wife, and five related non-defendant entities, including Turn Key Lumber Inc. Subsequently, the court appointed the special master as receiver to take possession of and sell three real properties owned, controlled, or used by Fernandes, his wife, or Turn Key. Following the sales, the special master/receiver had over $1.7 million in real estate proceeds available for distribution.
Western Surety Co., a bond company with liens...
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