Another Million-Dollar Bust Under California Labor Law

Sacramento, CA Violations against California labor law by two contractors has resulted in combined wage and penalty assessments totaling in excess of $1 million. The foregoing is an example of not only the commitment by the Office of the California Labor Commissioner to root out unlawful behavior on the part of employers, but is also demonstrative of injustices that continue to be suffered by well-meaning employees, simply trying to do their jobs.

Beyond having a proactive labor commissioner dedicated to advocating on behalf of workers, in many instances a California labor lawsuit is the only recourse workers have to fight unfair treatment.

According to a release by US State News (12/17/12), FTR International Inc. was found to have failed to pay their workers the correct prevailing wages according to California and labor law guidelines. The Office of the California Labor Commissioner also accused the firm of failing to pay its employees daily overtime, and failure to pay premium rates for work performed during weekends, in addition to other violations.

FTR International, according to the statement, was hired by the Southern California Regional Rail Authority to undertake the Los Angeles Union Station 'Platform 7' project. The firm does business as a general contractor, and was ordered to pay $401,041 in back wages and $185,725 in fines with regard to its affront to California labor employment law.

A similar story unfolds with Wirtz Quality Installations Inc. (Wirtz), a stone and tile contractor that was cited by the Labor Commissioner for failure to pay proper wages to 55 workers toiling on behalf of the general contractor on a construction project for Palomar Pomerado Health Systems.

In the Wirtz case, the contractor was found to have charged workers a percentage of their wages in various fees for payments made into a fringe benefit plan for supplemental unemployment insurance. The charge translated into what was deemed a significant underpayment of prevailing wages according to legislative guidelines governing California prevailing wage. According to an investigation by the Division of Labor Standards Enforcement (DLSE), Wirtz was also found to have failed to pay their workers appropriate overtime wages.

The Labor Commissioner for the state of California, Julie A. Su, stated in a news release that wage theft in any form would not be tolerated under her watch.

"Construction workers work long hours and perform invaluable work building the infrastructure in our communities," Commissioner Su said in a statement. "My office is here to ensure that all public works contractors pay fringe benefit packages as required by law. Charging fees for these benefits is an unlawful end-run around prevailing wage laws."

Wirtz was ordered to pay $102,292.47 in back wages and $402,450 in fines to answer for violations against the California prevailing wage law.

As for FTR International, Su had this to say about the contractor's violation against California employee labor law: "The action against FTR should serve as a warning to other contractors who fail to abide by our laws," said Commissioner Su. "These enforcement actions are also a message to law-abiding contractors that we are here to help you by going after the scofflaws."