BOSTON (Legal Newsline) - A Pennsylvania-based engineering and utility infrastructure contractor has agreed to a settlement with Massachusetts Attorney General Martha Coakley over allegations that they failed to pay employees the state prevailing wage.

Henkels & McCoy Inc., of Blue Bell, agreed to pay 54 employees $145,000 in restitution as well as penalties of $15,000 to Massachusetts as a result of the violations.

An investigation into Henkels & McCoy followed information received by Coakley's office in July 2006 that the company had improperly classified some of its workers on the MBTA's Greenbush Commuter Line public works construction projects.

The company's certified payroll records were reviewed by investigators from the attorney general's Fair Labor Division, who discovered that 28 employees had not been paid the correct state prevailing wage rate for the work performed.

Investigators received additional information during the course of the investigation that Henkels & McCoy had also improperly classified some of their workers on the I-91 Intelligent Transportation System public works project.

Following a review of company records, it was learned that the company had failed to pay 31 employees the proper state prevailing wage rate on the project, Coakley said.

Henkeys & McCoy fully cooperated with the investigation.

All construction work performed on public works projects in Massachusetts is subject to the Prevailing Wage and Record Keeping Laws.

Coakley's office is responsible for enforcement of laws that regulate the payment of wages laws, overtime and misclassification of employees within Massachusetts.