California subcontractor cited for $12 million in stolen wages

On Behalf of | Mar 7, 2019 | employment law

It may be the largest case of wage theft by a private company in California. According to Patch, the state Labor Commissioner’s Office has cited RDV Construction, Inc. for nearly $12 million in wage theft violations.

The subcontractor has offices in Arcadia and City of Industry. The company stands accused of leaving more than a thousand workers waiting weeks and months for payment and then, ultimately, short paying these workers.

Workers’ checks bounced

RDV Construction hired workers to frame, drywall and complete other trade work for buildings around Los Angeles. The company paid the crews with checks that would bounce due to insufficient funds. Many workers never received full payment for their work.

In 2017, workers complained to the Carpenters Contractors Cooperation Committee. The Labor Commissioner’s Office then launched an investigation into RDV.

They were denied breaks and overtime pay

Their investigation revealed between 2014 and 2017, more than 1,000 workers worked at 35 sites for RDV Construction. These workers usually worked nine-hour shifts with no rest breaks or overtime pay. The investigation also found RDV illegally withheld 10 to 25 percent of workers’ pay during this time.

The commission issued these citations:

  • $5,407,944 for waiting time penalties. This is for failing to pay 1,089 employees in a timely manner.
  • $1,769,782 for failing to provide proper breaks to 1,125 workers.
  • $566, 897 for overtime pay. This was what 1,111 workers should have been paid in overtime.

The citations totaled $11,943,054, which is owed to RDV workers. The CEO along with two project managers are being held liable for these violations.

California takes it labor law protections very seriously. According to the California Department of Industrial Relations, any employees who work over eight hours and up to 12 hours in a day are paid one and one-half times their normal pay for these hours. If employees work over 12 hours in a day, they are paid double their pay rate for these hours.

Wage theft accusations are serious

If your company has been accused of wage theft, you must address the issue as soon as possible. Employment law attorneys may be able to help your business avoid a lawsuit or an investigation, which can result in significant fines and damage to your reputation.