State Labor Commission Sets Landmark Settlement against Erring Contractor

Employment and Labor Law - State News February 9, 2010

Los Angeles – The state Labor Commission has reached settlement with a contractor who was earlier charged with failing “to provide adequate funds to a subcontractor resulting in employees being deprived of contributions to social security, disability, and unemployment insurance”.

Based on the agreement, the New Orleans-based company will pay the state of California $100,000 on behalf of employees who worked in janitorial services in San Diego County and the Los Angeles area. The settlement was the result of the lawsuit filed by Commissioner Angela Bradstreet in San Diego County Superior Court in March, 2008.

It was the first lawsuit filed by the state to enforce Labor Code section 2810, which makes it illegal to “subcontract janitorial services without providing sufficient funding to allow the sub contractor to comply with all laws and regulations”.

More than 200 employees will receive between $100 and $2,000 each in compensation as part of the settlement. The settlement provides that payment will be made by the end of this month.

The California Labor Commissioner’s Office, also known as the Division of Labor Standards Enforcement, adjudicates wage claims, investigates discrimination and public works complaints, and enforces state labor law. Employees with work-related questions or complaints are urged to call the California Workers’ Information Hotline at (866) 924-9757.