$870,000 Wage Theft Settlement in California Puts Law-Breaking Contractor Out of Business

[Omaha Steve]

http://wepartypatriots.com/wp/2012/06/15/870000-wage-theft-settlement-in-california-puts-law-breaking-contractor-out-of-business/




The importance of appointing workers’ rights advocates to government positions that enforce wage and safety laws is shining through in California where California Labor Commissioner Julie A. Su announced a settlement against a contractor who refused to pay the prevailing wage on a state-funded project.

Tadros & Youssef Construction, the prime contractor for construction in the Arcadia Unified School District, has agreed to pay $877,876.64 in back wages and penalties for failure to pay prevailing wages, overtime wages, and related labor violations.

“This public works project is an investment the taxpayers of California have made in their educational system, and when contractors entrusted to build out that vision abuse the public’s trust, we will not stand by and let that go on,” said DIR Director Christine Baker. “Public works requirements such as prevailing wage exist to ensure that public money is spent properly, and that the highest possible value is received from public works projects.”

“California workers must be paid prevailing wages for all work they perform on public works projects. Prevailing wage protections exist for the benefit of the men and women who build schools in our communities and for the honest employers who deserve a level playing field,” said Labor Commissioner Julie A. Su. “We hope this settlement sends a strong message that all employers who are paying workers less than they are owed are operating illegally, and meaningful enforcement that gets wages owed into workers’ pockets is an absolute priority of the Labor Commissioner’s office.”

FULL story at link.

About the Author: Chaz Bolte
Chaz Bolte is a native of Pittsburgh, PA where he attended Slippery Rock University. He currently contributes to WePartyPatriots, Addicting Info, Secret Party Room, and Football Nation. You can follow him on Twitter @ChazBolte

[pinto]

1. Kick

[bongbong]

2. Standard strategy

This is a standard strategy of some contractors. Break a law or laws, gamble you won't get sued. If you do get sued, declare bankruptcy and "go out of business". But what you really do is just reform your company under a relative or other trusted party's name.

Well known trick, and contractors aren't the only offenders. Sometimes they even gets new contracts from the same agency under the re-formed company.