For Those Who Violate California Labor Law, There's a New Sherriff in Town…

Oakland, CA Employers who chronically underpay and otherwise take their employees for a ride in deference to California labor law will have a new enemy in the fight for workers' rights, fairness and equality. To that end, the Labor Commissioner for the state of California has announced the launch of a Criminal Investigation Unit (CIU) tasked with rooting out the evildoers and leveling the playing field.

In attempting to gain an unfair competitive advantage (and to save costs), many employers stoop to unsavory practices all in the name of making a better buck. That includes paying workers less than minimum wage, denying workers overtime, misclassifying workers to avoid overtime costs, and non-provision of workers' compensation coverage and benefits. The foregoing is in violation of the California labor code.

Companies employing such tactics gain an unfair and undeserved advantage over their competitors when bidding for projects. Conversely, those employers who play by the rules are often shut out of lucrative contracts.

In either scenario, a California labor lawsuit is often the response.

"We are very excited to announce the creation of this unit, which will be tasked with leveling the playing field for California employers by raising the stakes for those who underpay, underbid and under-report in violation of the law," said California Labor Commissioner Julie A. Su in a statement late last month. "This is a vital tool in our efforts to step up enforcement to protect California workers and employers struggling to make an honest living."

The unit, which will be comprised of peace officers reporting directly to the Labor Commissioner, will work under the auspices of the Department of Industrial Relations' Division of Labor Standards Enforcement (DLSE), and will investigate and pursue any and all violations and allegations of fraud against the required guidelines of conduct set forth in California labor employment law.

A news release from the state February 27 noted the unit will be watching for labor theft, lost wages through bounced paychecks or accounts with chronically insufficient funds, and kickbacks on public labor projects. The CIU will also have in its sights unlicensed farm contractors and similar conduct in the garment industry, together with violations involving minors on the job. All flies in the face of California and labor law.

"As a law enforcement agency, we will use all tools available to us to bring about compliance," Su said in a statement. "The Labor Code's criminal provisions acknowledge that wage theft is a threat not just to those most directly affected, but to public safety and the health of our economy."

While the unit will bolster compliance with California employee labor law, it is not known if the unit's activities will stem the flow of lawsuits or increase their number. Many violations go undetected, given that workers are often reluctant to come forward to complain, afraid for their jobs and their respective livelihoods. An increase in the rate of exposed employers in non-compliance could very well increase the likelihood of a California labor lawsuit.