California Task Force Targets Wage Theft, Construction Industry

The California Department of Industrial Relations announced on August 28, 2014 that it continues an elevation in enforcement actions against construction sites and other employers who fail to abide by wage payment or worker safety laws.

The California Law Enforcement Task Force (LETF) reports that 81 citations have already been issued, and four work sites have been shut down as a result of increased enforcement efforts. This statewide multiagency team of investigators from Cal/OSHA and the CA Labor Commissioner’s Office are focusing on Los Angeles, the Silicon Valley, Fresno and the Inland Empire.

LETF was specifically designed to combat employers who fail to follow wage payment laws through wage theft (nonpayment of earned wages) or paying less than the minimum wage. It is specifically designed to eradicate the “underground economy” including employers who pay workers “under the table” (meaning illegally paying workers on a cash basis or “off the books” without paying employment taxes, social security and similar taxes.) This includes misclassifying employees as independent contractors.

The taskforce is designed to create a level playing field for all employers by ensuring that every business follows state laws on minimum wage, overtime, workers compensation, wage payment and worker safety. Employee or business competitors who have evidence of wage theft or worker misclassification can report them to the California Division of Labor Standards Enforcement. Among recent violations, investigators found employers who were not paying overtime and failing to provide pay stubs.

In addition to penalizing employers in the construction industry for wage violations, Cal/OSHA found a number construction safety violations including sketchy scaffolding and stairways and inadequate workers compensation insurance coverage.