Los Angeles Files California Overtime Lawsuit

Los Angeles, CA Los Angeles City Attorney Mike Feuer has filed a California overtime lawsuit against a contractor, alleging the contractor failed to properly pay its employees hourly wages and overtime. The lawsuit alleges violations of wage and overtime pay laws to the tune of more than $250,000 related to work done in building the South Los Angeles Animal Care Center.

According to the city attorney’s news release, Mackone Development Inc. - the primary contractor - and subcontractors Pak’s Cabinet, Lectrfy, Southern California Steel, KCC General Construction, King Wire Partitions, Inc., Nader Construction and their operators are all named as defendants in the lawsuit. Feuer alleges the defendants not only stole more than $250,000 in wages from employees, but also harassed and intimidated employees to cover up the illegal activities.

In 2009, Mackone Development received the $9.5 million contract to build the South Los Angeles Animal Care Center facility. Construction took place from 2010-2013 and employee wages were governed by prevailing wage laws. Among the alleged violations included in the lawsuit were Pak’s Cabinet paying employees as little as $8 an hour when prevailing wage rules required payment of $49 per hour; KCC General Construction paying some employees as little as $5 an hour when prevailing wage law required $45 per hour; Lectrfy, Inc., not paying prevailing wage or most overtime and paying employees for fewer hours than they worked; and Mackone Development not paying prevailing wages for all hours worked.

“The Defendants named in this complaint are, individually and collectively, liable for stealing wages from the workers they employed and promised to pay for their work on this City project, and for covering up of this theft,” the complaint states. “The impact on the workers was significant; not only were they and their families severely damaged financially, but many were subject to overt harassment and intimidation as part of the Defendants’ efforts to conceal their illegal schemes.”

The lawsuit seeks restitution to all employees and civil penalties of up to $2,500 per violation.

A spokesperson for Mackone said the city attorney’s allegations are false and irresponsible and argued that the city agreed in writing that Mackone was not responsible for the other companies’ failure to pay prevailing wages, according to the Los Angeles Times (11/13/14).

When Feuer announced the charges against the companies, he also announced a wage theft hotline to encourage employees to report incidents of wage theft.