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15-Apr-08 10:15 [Americas]
Boston employers to be punished for pay discrepancies Employers in Boston who fail to pay workers their full wages, hold back final pay checks or who stop employee benefits such as overtime pay will be hit with a triple penalty.
In a new law passed yesterday, triple damages will be paid to employees who are affected by not being properly paid.
Philip Gordon, a Boston lawyer who represents employees in wage disputes and contract negotiations, told Boston.com: "If you don't get your wages, your credit report may suffer, you may miss mortgage payments or health payments, and you may have to decide whether you're going to buy food or clothing this month."
He added that the new law sets in place a "mechanism to compensate employees for their losses" and it tells employers in the state to take the payment of wages seriously.
Opponents of the law have said that it will punish employers who have made an honest mistake in not working out who is owed overtime pay properly.
Also in the US, a new bill has been announced in California which means public pensions schemes could be made available to private sector workers.
Boeing's "best and final" offer has been rejected by the Machinists' union, with the leaders of the group proposing a strike against their employers.
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It was reported today that the American government has ordered bankrupt car part manufacturer, Delphi Corp, to pay $1.5 billion (£808 million) to its former parent company by the end of September.
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Coca Cola has agreed a multi-million dollar settlement for a class action law suit led by two pension funds.
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