FOR IMMEDIATE RELEASE
IR #2010-24
August 19, 2010

CONTACT:
Krisann Chasarik
Erika Monterroza
415-703-5050

Internet: www.dir.ca.gov


CA Labor Commissioner Finds Additional Wage Violations with UC Davis Housing Project Contractors

Davis, CA – State Labor Commissioner Angela Bradstreet has uncovered more wage violations at the Tercero Housing Project at the University of California, Davis.  Kings Drywall Inc. and JL Home Development have been ordered to pay over $1.3 million for failure to properly pay 149 workers.  This latest civil wage and penalty assessment now brings to four the total number of subcontractors working on the project who face wage violations. 

Nevada-based subcontractors Kings Drywall and JL Home Development are accused of willfully violating prevailing wage laws.   An investigation by the California Department of Industrial Relations (DIR) Division of Labor Standards Enforcement (DLSE) found the companies failed to report workers on their certified payroll reports, pay overtime and provide accurate deduction statements. 

“My office is committed to providing a level playing field for all contractors who comply with the law,” said Labor Commissioner Angela Bradstreet.  “Contractors simply cannot cut corners and intentionally underpay their workers depriving those employees of the money they earned.  I believe the action my office is taking against Kings Drywall and JL Home will continue to serve as a deterrent to any company that is thinking about undermining its employees or the wage laws.”

In June, two other subcontractors, Russell/Thompson and 84 Lumber, Inc. were ordered to pay $1.5 million in wages and penalties for wage violations on the Tercero Housing Project.  The general contractor on the project is Brown Construction and could be held responsible for paying both the owed wages and penalties if the subcontractors successfully appeal.

“Public works projects such as this housing development have a tremendous impact on California's economy and long-term competitiveness,” said DIR Director John C. Duncan. “We must ensure that every business that takes on these important projects has a competitive shot and follows the rule of the law.”

The DLSE has a successful record of recovering wages for California workers. The division won judgments and reached settlements totaling more than $17 million dollars last year alone.

The California Department of Industrial Relations’ Division of Labor Standards Enforcement adjudicates wage claims, investigates discrimination and public works complaints and enforces state labor law.  To learn more about the functions of the Division of Labor Standards Enforcement, visit our Web site at www.dir.ca.gov/dlse.  Employees with work-related questions or complaints may call the California Workers’ Information Hotline at (866) 924-9757.

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