Nailed: A fraud prevention and compliance blog

Written by Elizabeth Smith,
L&I's Assistant Director for
Fraud Prevention and
Labor Standards

Oct. 18, 2012

Underground Economy focus of Mass. audits

Unpaid taxes in the tens of thousands of dollars, scores of misclassified employees, contractors working without workers’ compensation coverage — investigators with a Massachusetts’ Joint Enforcement Task Force found all this and more when they audited the Boston Marriott Copley Place renovation project recently.

The auditors also discovered more than $1 million in unreported payroll connected to the project. The result of their work — employees protected by workers’ comp and cheaters paying what they owe.

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In a tough economy, businesses are looking for ways to cut costs. Unfortunately, breaking laws is not a good way to go about it.

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