CA Labor Commissioner Reaches $875K Settlement for Wage and Hour Violations in Public Works Projects

June 29, 2012

Julie A. Su, California's Labor Commissioner, recently announced the settlement of a civil wage and penalty assessment that was issued by Su against a California contractor involved in public works projects within the Arcadia, California Unified School District.

According to the Labor Commissioner's recent press release, that Vincent Howard has been following, the Upland, California-based construction company Tadros & Youssef, was found by the California Department of Industrial Relations' (DIR) to have engaged in multiple labor violations while working on California public works projects, including failing to pay prevailing wages and overtime payment to California workers.

The DIR's Division of Labor Standards (DSLE) Enforcement reportedly launched an investigation into the construction company's activity after a worker filed a complaint claiming that he was not paid any wages for his work performed in 2009 and 2010 on Arcadia's Highland Oaks Elementary School. The worker alleged that Tadros & Youssef promised to pay him by piece rate--work that is paid depending on the number of units completed-- after he installed a series of stainless steel and wood doors in the elementary school. The investigation also uncovered nine more workers who alleged that they were also not paid by the construction company according to the prevailing wage, and that they did not receive any overtime compensation.

Su stated that payment by piece rate should never be used to avoid California's minimum wage and prevailing wage laws. California workers must always be paid prevailing wages for all work performed on public works projects, according to Su, as these labor protections exist to benefit workers who build schools in our California communities, and to level the playing field for honest employers.

According to Christine Baker, DIR Director, this public works project is an investment that the California taxpayers have made in their educational system, and the public won't stand by and let contractors violate their trust. Baker claims that the public works requirements exist to ensure that the California taxpayers' public money is spent properly, and that the public works projects achieve the highest possible value.

Su claimed that Tadros & Youssef Construction will pay back wages and penalties in the amount of $877,876.64, for failing to compensate workers with overtime wages and prevailing wages, among other labor violations, that will be divided among the workers. The construction company is reportedly no longer in business.

In cities throughout Orange County, California, contact our Costa Mesa wage and hour legal team today. Call Howard Law's managing attorney, Vincent Howard today for a free consultation at 1-800-872-5925.

California Labor Commissioner Reaches Settlement of Over $875,000 for Unpaid Wages, The Business Journals, June 11, 2012

Related Web Resources:

The Department of Fair Employment and Housing (DFEH)

U.S. Department of Labor: Wage and Hour Division (WHD), Fair Labor Standards Act (FLSA)

Department of Labor (DOL): Wage and Hour Division (WHD)

California Department of Industrial Relations (DIR): Division of Labor Standards Enforcement (DLSE)

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