This regular feature shows how other companies have run afoul of IRS regulations, sales and use taxes or other laws. You can see how others got off track, and avoid similar problems. Today’s problem: failing to make sure subcontractors follow payroll laws.

• Business: Baystate Services, Woburn, MA.
• Violation: Failure to meet the Fair Labor Standards Act’s minimum-wage provisions. A subcontractor working for Baystate failed to pay employees the state minimum wage.
• Penalty: Baystate agreed to make up the difference between the wages its subcontractor, Installations Plus, paid workers ($4/hour) and state minimum wage ($8/hour). In total, Baystate paid $31,056 to 37 workers. It’ll also ensure workers are paid at least the minimum wage on future projects in MA.

For more on the Baystate case, go here.