California Labor Commissioner Cites Drywall Company $7.2M for Wage Theft

October 27, 2021

The California Labor Commissioner’s office cited NGC Construction Inc. $7.2 million for wage theft violations affecting 724 workers.

An investigation reportedly showed that the Visalia-based drywall company paid workers a fixed amount per project known as “piece-rate.” The workers, who put up drywall, provided painting services and stucco application, were not paid for non-productive time, resulting in workers earning less than minimum wage and less than the contract wages promised by the employer. Some of the company’s truck drivers were also reportedly not paid overtime.

The Labor Commissioner’s Bureau of Field Enforcement opened its investigation into NGC Construction in September 2018 as part of an onsite inspection prompted by a worker’s Report of Labor Law Violation. The company allegedly sent workers, who usually worked eight-hour shifts, to commercial and residential construction sites throughout the Central Valley from Arvin in the south to Modesto in the north and Paso Robles in the west.

An audit of the company’s payroll from July 22, 2016 to July 22, 2019 reportedly confirmed the findings that employees were not paid for all of their work.

The citations issued total $4,858,072 payable to workers in unpaid wages, damages and premiums including:

  • $281,237 for minimum wage violations affecting 718 employees plus $74,693 interest
  • $355,931 in liquidated damages for minimum wage violations affecting 718 employees
  • $289,364 for non-payment of contract wages affecting 722 employees
  • $44,280 for overtime affecting 43 employees
  • $355,931 in liquidated damages affecting 718 employees
  • $1,001,400 for itemized wage statement damages affecting 720 employees
  • $2,811,006.12 for waiting time penalties affecting 568 employees
  • $161 for meal period premium violations affecting 3 employees.

The Labor Commissioner cited NGC Construction Inc. along with Julio C. Mendoza, president and CEO of the corporation, for total of $2,351,800, which included violations for failing to pay minimum wages, overtime pay, meal period premiums and failure to issue proper itemized wage statements and associated civil penalties.

When workers are paid less than minimum wage, they are entitled to liquidated damages that equal the amount of underpaid minimum wages plus interest.

Enforcement investigations typically include a payroll audit of the previous three years to determine minimum wage, overtime and other labor law violations, and to calculate payments owed and penalties due. Civil penalties collected are transferred to the State’s General Fund as required by law.

Topics California Fraud

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