News
Release No.: 2018-61
Date: July 24, 2018
Labor Commissioner’s Office Cites Southern California
Drywall Contractor Nearly $2 Million for Overtime and Rest Period Wage Theft
Long
Beach—The Labor Commissioner’s Office has issued wage theft
citations of $1.9 million to Fullerton Pacific Interiors Inc. for failing to
properly compensate 472 workers on 26 construction projects throughout Southern
California. An investigation determined that none of the workers were provided
rest periods as required by law, 289 workers were not paid for overtime and 28
workers were paid less than minimum wage.
The
Fullerton-based contractor provided drywall work at hotel, recreation center
and casino projects in Los Angeles, Orange and San Bernardino counties from
August 2014 to June 2016. Workers performing taping and drywall installation
were paid a daily rate that did not properly compensate them for overtime
hours. Workers were allowed a 30-minute meal period but did not receive rest
breaks.
“In
construction, unscrupulous contractors attempt to obscure their wage theft by
paying workers a flat rate rather than for all hours worked,” said Labor
Commissioner Julie A. Su. “But a daily or other flat rate system does not take
the place of minimum wage and overtime obligations.”
The
$1,964,679 citation penalty amount includes $1,892,279 payable to the workers
and $72,400 in civil penalties. Of the total due to workers, $798,664 is for
rest period violations, $386,685 for unpaid overtime and $692,500 for wage
statement violations. The 28 workers shorted on minimum wage pay are owed a
total of $14,431 for unpaid wages, liquidated damages and waiting time
penalties. Fullerton Pacific Interiors, Inc. did not provide accurate
itemized wage statements as required by law.
The
Labor Commissioner’s Office launched an investigation of Fullerton Pacific
Interiors after workers complained about pay violations to Carpenters
Contractors Cooperation Committee, a non-profit labor-management organization.
Enforcement
investigations typically include a payroll audit of the previous three years to
determine minimum wage, overtime and other labor law violations, and calculate
payments owed and penalties due. Civil penalties collected are transferred to
the State’s General Fund as required by law.
When
workers are paid less than minimum wage, they are entitled to liquidated
damages that equal the amount of underpaid wages plus interest. Waiting time
penalties are imposed when the employer intentionally fails to pay all wages
due to the employee at the time of separation. This penalty is calculated by
taking the employee’s daily rate of pay and multiplying it by the number of
days the employee was not paid, up to a maximum of 30 days.
Most
workers in California must receive a paid 10-minute rest period for every four
hours worked. If workers do not receive rest breaks as required by Industrial Welfare Commission orders for their
occupation, the employer must pay one hour of pay at the worker’s regular pay
rate for each workday that the break is not provided, and civil penalties of $50 per worker per pay period
for the initial violation, which increases to $100 each for subsequent
violations.
The
Division of Labor Standards Enforcement, or the Labor Commissioner’s Office, is
the division within the Department of Industrial Relations (DIR) with wide-ranging
enforcement responsibilities including adjudicating wage claims, inspecting
workplaces for wage and hour violations, investigating retaliation complaints
and educating the public on labor laws.
In
2014, Labor Commissioner Su launched the Wage Theft is a Crime multilingual
public awareness campaign. The campaign defines wage theft and informs workers
of their rights and the resources available to them to recover unpaid wages or
report other labor law violations.
Employees
with work-related questions or complaints may contact DIR’s Call Center in
English or Spanish at 844-LABOR-DIR (844-522-6734).
===============
A Full Service Drywall Company
Fullerton
Pacific Interiors covers your wall solutions in and out. Providing
innovative products from elite Gypsum manufactures designed to satisfy
the most demanding specification and building codes.
Our Tradesmen work attentively, to provide precise detailed craftsmanship, in a safe, timely manner, and within budget.
Our Tradesmen work attentively, to provide precise detailed craftsmanship, in a safe, timely manner, and within budget.