A Framingham staffing agency and a Woburn bakery will pay $649,000 in restitution to 1,200 employees for unpaid hours worked.
The bakery, CSM Bakery Products NA, Inc., and staffing agency, EDA Staffing, Inc., reached a settlement with the Attorney General's office to pay the $649,000 in back wages to employees and civil penalties to the state.
“Our office receives many complaints every year from workers employed by temporary staffing firms,” said Attorney General Martha Coakley. “Employers cannot offload their wage obligations onto temp agencies or simply look the other way. Temp agencies and the companies that use them have serious obligations and will be held equally liable as joint employers.”
CSM Bakery is the new owner of the Titterington’s Olde English Bake Shoppe on Cummings Park.
Two years ago, employees approached Chelsea Collaborative and the Greater Boston Legal Services to report that they were not being paid for all of their hours worked by either the bakery or the temp agency.
According to Coakley, CSM said that after acquiring Titterington’s, "it implemented managerial and procedural changes to address payroll and time-keeping issues based on pay practices in place prior to the acquisition."
After the Attorney General's office determined that both companies were liable for the unpaid wages, Coakley reported, "CSM fully cooperated with the AG’s investigation and agreed to pay $520,000 in restitution to workers, as well as a civil penalty to the Commonwealth."
EDA, which had previously agreed to a $51,000 restitution settlement in 2011, agreed to a second settlement after the AG's office received 67 additional complaints, said Coakley.
According to the AG's office, EDA will now pay "full restitution"—$77,000 and a civil penalty—and undergo on-site training on wage and hour laws.