AGNES, J.
The Workers' Compensation Act, G. L. c. 152 (act), provides that whenever the Commissioner of the Department of Industrial Accidents (the department) determines that an employer has not provided the insurance required by law,
G. L. c. 152, § 25C(10). The issue before us, which is one of first impression, is whether the phrase "to avoid higher premium rates," as it appears in subsection (10), modifies the two preceding clauses ("who fails to provide for insurance or self insurance as required by this chapter or knowingly misclassifies employees") or modifies only the immediately preceding clause ("knowingly misclassifies employees").
The plaintiff, New England Survey Systems, Inc. (NESS), contends that the placement of the comma after the word "employees" means that the phrase "to avoid higher premium rates," modifies the two preceding clauses with the effect that an employer like NESS — against whom a stop work order issued due to its failure to have the insurance required by law, but who was not shown to have acted with the intent to avoid higher insurance premiums — is not subject to automatic debarment. In essence, NESS claims that prior to implementing the penalty of debarment, the department was required to prove that NESS's admitted
1. Background. a. Stop work order and debarment. On December 28, 2012, an investigator with the department was working in the Brookline area and came upon NESS's place of business. The investigator queried the Workers' Compensation Rating and Inspection Bureau's computer system and discovered that NESS had a canceled workers' compensation insurance policy. The investigator issued NESS a stop work order pursuant to G. L. c. 152, § 25C. NESS's president, John Roberge, who maintained he was unaware that the policy had lapsed, contacted its insurance provider that day, and the provider reinstated coverage immediately.
b. Appeal history. NESS filed an administrative appeal from the debarment order.
2. Discussion. a. Applicable principles of interpretation. The interpretation of § 25C(10) is a matter of law, and we exercise de novo review of the department's interpretation of that statute. See Protective Life Ins. Co. v. Sullivan, 425 Mass. 615, 618 (1997). The words used by the Legislature in a statute, viewed in their statutory context and in the light of the purpose of the legislation, are the best guide to legislative intent. See Hanlon v. Rollins, 286 Mass. 444, 447 (1934); Hoffman v. Howmedica, Inc., 373 Mass. 32, 37 (1977); Bronstein v. Prudential Ins. Co. of America, 390 Mass. 701, 704 (1984). This is in keeping with guidance from the Legislature on how statutes should be interpreted. See G. L. c. 4, § 6, Third, set out in the margin.
The Superior Court judge recognized that the interpretation of § 25C(10) urged by NESS was illogical in that an employer who is not self-insured and has not provided workers' compensation insurance coverage, and therefore has paid no insurance premium, would avoid the penalty of debarment, while an employer
b. The Workers' Compensation Act and the 1987-1991 reforms. General Laws c. 152, enacted in 1911, was initially an "elective" law that allowed employers in the Commonwealth to opt into its provisions by securing insurance to cover workplace injuries incurred by employees. St. 1911, c. 751. Its provisions were made compulsory for most employers in 1943, see St. 1943, c. 529, and remain so today.
The act saw substantial changes in 1985, following hearings conducted by a Governor's task force convened to address problems with the funding, administration, and scope of the workers' compensation system. See St. 1985, c. 572; St. 1986, c. 662; St. 1987, c. 691. Changes were made to the department's infrastructure and funding, along with benefit entitlements and procedural rules.
The 1985 reforms were not effective in controlling the costs of workers' compensation insurance premiums, and rates continued to rise sharply in the years to follow. Nason, Koziol & Wall, Workers' Compensation § 2.8 (3d ed. 2003). These ongoing concerns culminated in an even more comprehensive wave of reform and the passage in 1991 of "An Act relative to fair and effective compensation of injured workers," St. 1991, c. 398. The reforms enacted in 1991 "acknowledged the premise that workplace injuries were a factor in the costs of doing business, and recognized that this cost factor had to be reduced in order to stimulate business growth and employment opportunities within the Commonwealth." Nason, Koziol & Wall, Workers' Compensation, supra at § 2.8, at 35. During the years leading up to the 1991 reforms, annual reports of the workers' compensation advisory council noted concern over the number of employers within the Commonwealth operating illegally without workers' compensation insurance. In fiscal year 1988, the advisory council recommended revising the act's enforcement provisions to
As part of the 1991 reforms, the Legislature added subsection (10) to G. L. c. 152, § 25C, which provides that noncompliant employers "will be immediately debarred from bidding or participating in any state or municipal funded contracts for a period of three years." St. 1991, c. 398, § 45B. This enforcement mechanism was provided in addition to the fines, stop work orders, and other penalties that already existed in § 25C(1)-(8) of the act. The only question before us is whether the penalty of debarment is automatic in the case of a failure to comply with § 25C(10). Given the principle that the act is to be interpreted broadly for the protection of workers, and in view of the historical development of c. 152, especially the evidence that the 1985 reforms were not as successful in reducing the cost of insurance as had been hoped, we conclude the Legislature intended that the words it used in St. 1991 in drafting subsection (10) should be given their natural meaning such that an employer is subject to the penalty of debarment once a stop work order has issued for
The legislative history recounted above strongly suggests that the Legislature added the penalty of debarment to the statutory sanctions for noncompliance with the insurance requirements of the act in an effort to compel employers to comply with their obligations. NESS argues that the placement of a single comma in the statute is outcome-determinative based on an interpretive aid known as the "last antecedent" rule.
c. Consideration of the act as a whole. "The legislative intent is to be ascertained from the statute as a whole, giving to every section, clause and word such force and effect as are reasonably practical to the end that ... the statute will constitute a consistent and harmonious whole, capable of producing a rational result consonant with common sense and sound judgment." Vining Disposal Serv. v. Selectmen of Westford, 416 Mass. 35, 38 (1993), quoting from Haines v. Town Manager of Mansfield, 320 Mass. 140, 142 (1946).
Of relevance here, § 25C(9)(a) of the act was inserted by the same amendment that inserted § 25C(10), see St. 1991, c. 398, §§ 45A and 45B, and should be interpreted in harmony with § 25C(10). Section 25C(9)(a) creates a cause of action for a losing contract bidder against a person who is awarded a public contract by competitive bid "because of cost advantages achieved by violating the provisions of section twenty-five A or section twenty-five C of this chapter or by the deliberate misclassification of employees for the purpose of avoiding full payment of workers' compensation insurance premiums" (emphasis supplied). Subsection (9)(a) thus permits a civil action to be brought against a person who obtains a public contract dishonestly by either (1) violating § 25A or § 25C; or (2) deliberately misclassifying employees in order to avoid full payment of premiums. This supports the view that the debarment penalty in § 25C(10) was similarly meant to punish either the failure to provide insurance or the misclassification of employees to avoid higher insurance premiums. In both subsections (9)(a) and (10), only the misclassification prong requires that the action of the employer was undertaken to further the goal of avoiding payment of higher premiums.
Citing Awuah v. Coverall N. America, Inc., 460 Mass. 484, 495 (2011), NESS argues, in effect, that the distinction drawn by the Legislature in § 25C(10) is artificial because an employer who misclassifies an employee fails to pay the required premium no less than the employer who fails to pay any insurance premium at
In sum, we hold that the penalty of debarment is triggered automatically in a case such as this, without the need to establish that the employer acted intentionally or wilfully, or that the employer sought to avoid payment of higher insurance premium rates. This result is consistent with the act's purpose, legislative history, closely related provisions, and its plain language.
d. Remaining arguments. NESS also contends that G. L. c. 152, § 25C(10), as applied, violates its constitutional rights to due process of law under the Constitution of the United States and the Massachusetts Constitution because it does not afford the employer an opportunity to present evidence that the cancellation of its insurance policy was not the result of intentional conduct. "The fundamental requirement of due process is notice and the opportunity to be heard `at a meaningful time and in a meaningful manner.'" Matter of Angela, 445 Mass. 55, 62 (2005), quoting
e. Chapter 30A review. This court, like the Superior Court, reviews the department's decision "according to the standards set forth in G. L. c. 30A, § 14(7), giving `due weight to the experience,
NESS makes no argument that it did not, in fact, fail to maintain workers' compensation insurance for a period of eight months. The lack of coverage is undisputed on this record. Because we hold that the department was not required to prove anything more than the fact that NESS lacked coverage and that a stop work order was issued, and NESS does not contend that the department failed to do so, there is no basis to disturb the department's decision.
Judgment affirmed.
We also note that NESS's reliance on In re Environmental Source Corp., 431 B.R. 315 (Bankr. D. Mass. 2010) is misplaced. There, the Bankruptcy Court limited its constitutional analysis to the preemption issue that arose when a contractor, whose business involved public sector contracting, failed to pay a prebankruptcy petition debt (namely, its workers' compensation insurance premium) and was debarred. Debarment prevented the business from earning income that would allow it to emerge from bankruptcy. The court reasoned that to apply § 25C(10) in such a case would violate the supremacy clause of the United States Constitution, Art. VI, because it interfered with the purpose and policy of Chapter 11 of the Bankruptcy Code, which "include[s] the preservation and rehabilitation of financially distressed businesses." 431 B.R. at 322. Insofar as Environmental Source Corp. turns on the disproportionate impact of § 25C(10) on businesses that operate in the public sector, its reasoning is limited to the circumstances of a debtor in bankruptcy.