California Labor Law Teeth Worth $13.5 Million
By Gordon Gibb
Los Angeles, CA How effective are California labor laws? When you can ding an employer for $13 million dollars-plus, it suggests ample teeth in California state labor law. But there needs to be, especially when one hears the story of how workers were sorely exploited in direct contravention to California labor employment law.
At issue is the conduct of two janitorial cleaning enterprises that were accused of evading payroll taxes, together with a failure to pay minimum wage and overtime to about 300 janitorial workers in California.
An investigation by the office of the California State Labor Commissioner revealed that workers were routinely required to work in excess of eight hours in a day, seven days per week at a flat rate of $50 per day.
Excell Cleaning and Building Services Inc. of Delaware and M.O. Restaurant Cleaning of California Inc. were assessed judgments totaling in excess of $13.5 million in a case fostered by state Labor Commissioner Angela Bradstreet and California Attorney General Edmund Brown.
"We are pleased that the court has awarded the workers their rightful wages owed, along with penalties and liquidated damages," said Labor Commissioner Angela Bradstreet. "Our coordinated effort with the Attorney General to take action against these companies sends a zero tolerance message to all California businesses that they need to play by the rules."
It was alleged that workers were also misclassified as independent contactors, allowing the two corporations to avoid paying a quarter of a million dollars in payroll taxes. Given the sorry condition of the California state economy at the moment, that's $250,000 the state would like to have in its coffers.
It has been reported that the two companies at the center of the lawsuit failed to appear, thus the court entered a default in the action. On March 15th of this year the Honorable Marvin M. Lager in Los Angeles Superior Court granted the Plaintiff's application for default and issued the judgment of $13,640,819 for wages owed, penalties for wage violations, penalties for unfair business practice violations and liquidated damages.
"As Labor Commissioner, my top priorities include protecting workers and targeting these kinds of companies that operate in the underground economy," said Bradstreet. "These illegal operations undercut legitimate businesses and are damaging to our state's economy."
The two defendant companies had contracts to supply janitorial services at various restaurants in Los Angeles, San Diego and Orange counties. By working their charges over 7 straight days for such a low stipend without provision for overtime benefits, basic workers' rights were sorely violated. Issues such as health and time spent with family would be problematic in view of the hours involved.
Such a violation of California labor laws suggests a blatant disregard for California state labor law, but also for basic human rights. As shown here, California labor employment law exists to protect worker's rights in the state. Violations are not taken lightly. If you, or a co-worker have evidence of these types of violations, it would be prudent to discuss the matter with a qualified attorney.
At issue is the conduct of two janitorial cleaning enterprises that were accused of evading payroll taxes, together with a failure to pay minimum wage and overtime to about 300 janitorial workers in California.An investigation by the office of the California State Labor Commissioner revealed that workers were routinely required to work in excess of eight hours in a day, seven days per week at a flat rate of $50 per day.
Excell Cleaning and Building Services Inc. of Delaware and M.O. Restaurant Cleaning of California Inc. were assessed judgments totaling in excess of $13.5 million in a case fostered by state Labor Commissioner Angela Bradstreet and California Attorney General Edmund Brown.
"We are pleased that the court has awarded the workers their rightful wages owed, along with penalties and liquidated damages," said Labor Commissioner Angela Bradstreet. "Our coordinated effort with the Attorney General to take action against these companies sends a zero tolerance message to all California businesses that they need to play by the rules."
It was alleged that workers were also misclassified as independent contactors, allowing the two corporations to avoid paying a quarter of a million dollars in payroll taxes. Given the sorry condition of the California state economy at the moment, that's $250,000 the state would like to have in its coffers.
It has been reported that the two companies at the center of the lawsuit failed to appear, thus the court entered a default in the action. On March 15th of this year the Honorable Marvin M. Lager in Los Angeles Superior Court granted the Plaintiff's application for default and issued the judgment of $13,640,819 for wages owed, penalties for wage violations, penalties for unfair business practice violations and liquidated damages.
"As Labor Commissioner, my top priorities include protecting workers and targeting these kinds of companies that operate in the underground economy," said Bradstreet. "These illegal operations undercut legitimate businesses and are damaging to our state's economy."
The two defendant companies had contracts to supply janitorial services at various restaurants in Los Angeles, San Diego and Orange counties. By working their charges over 7 straight days for such a low stipend without provision for overtime benefits, basic workers' rights were sorely violated. Issues such as health and time spent with family would be problematic in view of the hours involved.
Such a violation of California labor laws suggests a blatant disregard for California state labor law, but also for basic human rights. As shown here, California labor employment law exists to protect worker's rights in the state. Violations are not taken lightly. If you, or a co-worker have evidence of these types of violations, it would be prudent to discuss the matter with a qualified attorney.
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