California Sub-contractor to Pay Over $1 Million for California Labor Law Violations

Stockton, CA A California plumbing and mechanical enterprise that served as a sub-contractor on a state public works project has been hit with a bill in excess of $1 million for violations to California labor law. The prime contractor has also been called to the carpet and is being held jointly responsible for the gaffe.

According to a statement released by the California Department of Industrial Relations (DIR 11/6/12), Nicodemus Plumbing and Mechanical has been mandated to pay $858,840.20 in back wages to 44 employees who worked for Nicodemus on a public works project at Stockton's San Joaquin Community College. The California labor lawsuit, brought by the Office of the Labor Commissioner, accused Nicodemus of falsifying certified payroll records.

The California labor code investigation by the DIR's Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner's office, revealed that Nicodemus shaved the number of actual hours worked by the 44 identified workers, and thus failed to pay proper wages under California prevailing wage law.

Taisei Construction Corporation served as the primary contractor for the facility. Taisei, in turn, hired Nicodemus to undertake the plumbing work. According to state labor laws, even though the misdeeds were carried out by Nicodemus, Taisei as the primary contractor can be held jointly responsible for the California employee labor law violations committed by Nicodemus. Taisei, in fact, was served with a penalty by the Labor Commissioner, although the amount was not identified.

"Prime contractors can be held jointly responsible when their subcontractors fail to follow California's labor law," said California Labor Commissioner Julie A. Su. "We will investigate all parties responsible for labor law violations to put the proper incentive on decision-makers in construction projects to deal only with honest, law-abiding contractors."

Su likens the actions of Nicodemus to wage theft, and vows vigilance is necessary in a soft economy when employers skirting around state labor laws make it harder for legitimate companies, with equally deserving employees, to compete for work.

"Wage theft will not be tolerated," said Commissioner Su. "Falsifying records to underreport the number of hours worked is stealing money from workers and my office will take swift and aggressive action to end this illegal and abusive practice."

DIR Director Christine Baker echoed some of those sentiments in her own comments. "It is imperative in these times that enforcement action is taken to fight against California's underground economy and provide a fair and level playing field for businesses who comply with our laws."

Nicodemus was also assessed a total of $230,050 in fines for violation to the California prevailing wage and other violations to the California labor code.

The investigation determined that Nicodemus also failed to pay overtime, in accordance with California labor law.