Mass. AG reaches $117,500 settlement with merchandising services company

By Bryan Cohen | Apr 3, 2013

BOSTON (Legal Newsline) - Massachusetts Attorney General Martha Coakley announced a $117,500 settlement Tuesday with a Maryland-based merchandising services company to resolve allegations that it failed to pay full unemployment contributions.

Convergence Marketing Inc., a company that does business and employs workers in the state of Massachusetts, allegedly failed to pay the full amount of contributions to the state's unemployment trust fund between January 2009 and December 2012.

"Qualifying employers are required to pay contributions to the unemployment compensation fund to ensure that benefits are available for eligible workers," Coakley said. "Through enforcement, we aim to level the playing field for those businesses that already follow the law and to ensure future compliance."

The Executive Office of Labor and Workforce Development's Department of Unemployment Assistance referred the case to Coakley's office. The matter is part of a collaborative effort to target employees that fail to pay required quarterly unemployment contributions. The contributions support the Department of Unemployment Assistance, which gives temporary assistance to unemployed workers through the unemployment insurance program. Private employers must pay quarterly contributions into the fund based on how many workers they employ and how often the workers have accessed UI benefits, in addition to other factors.

Under the terms of the agreement, Convergence will pay the state more than $117,500 to resolve the allegations of unpaid contributions.

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