California Labor Commissioner’s Office recovers nearly $2 million for workers left unpaid after company closure
SACRAMENTO—The California Labor Commissioner’s Office (LCO) has recovered approximately $1,988,000 for 136 former workers from the owner of Capital Mailing Services, Inc., following the West Sacramento printing and bulk mailing company’s abrupt closure.
Today’s announcement follows a multiyear effort that began with workers’ claims and continued as the LCO pursued the case through lengthy civil litigation.
What California Labor Commissioner Lilia García-Brower said: “Workers should not lose the wages and protections they are owed simply because a business closes its doors. This case shows why enforcement requires persistence. More than a decade after these workers were sent home, we are still working to make sure the money we recovered reaches the people who earned it. We will continue to use every tool available to hold employers accountable and deliver meaningful results for workers.”
Caption: Former Capital Mailing workers receive payments in Sacramento on October 16, 2026.
“It means a lot to see this process through to the end. It’s not only about getting the money we earned,” said former employee Benjamin Clark. “It’s about knowing that what happened to us mattered, that we weren’t just left on our own to carry the consequences.”
In February 2016, Capital Mailing sent its employees home and permanently closed, leaving them without jobs or their final pay checks. The company failed to provide the advance notice required under the California Worker Adjustment and Retraining Notification Act (Cal/WARN Act).
In 2018, the LCO filed a lawsuit against Capital Mailing and its owner, Perice Sibley, for violations of the Cal/WARN Act and unpaid minimum wages, seeking liquidated damages and waiting time penalties. The LCO also filed a fraudulent transfer action to prevent the company’s owner from transferring assets to avoid financial responsibility.
In 2023, the trial court ruled in favor of the LCO. The California Court of Appeal later affirmed the $1.3 million judgment, approximately 99% of which is designated for workers.
In a separate action to enforce wage judgments, the LCO collected approximately $688,000 from Sibley, with 97% designated for 82 workers. Approximately 50 workers are owed payments from both recoveries.
The Cal/WARN Act generally requires covered employers to provide 60 days’ advance written notice before a covered mass layoff, relocation or termination. Temporary and part-time workers may also be covered. Employers that fail to provide the required notice may owe affected workers up to 60 days of backpay and lost benefits.
The LCO is continuing efforts to reach former Capital Mailing employees whose contact information may have changed since 2016. Workers who received a notice from LCO should complete and return their verification letter. Those who believe they may be entitled to funds can email the LCO at LaborComm.WCA.SAC@dir.ca.gov.
About the Labor Commissioner’s Office
The LCO combats wage theft and unfair competition by investigating allegations of illegal and unfair business practices. In 2025, the LCO recovered more than $78 million in wages across its enforcement programs. The Bureau of Field Enforcement recovered $15.4 million, a 41% increase from 2024.
Workers with questions about labor laws enforced by the LCO can call 1-833-LCO-INFO (833-526-4636) from 8 a.m. to 5 p.m. Monday through Friday.
Employers with questions about requirements can email the LCO at MakeItFair@dir.ca.gov.
California labor laws protect workers in most industries regardless of their immigration status. Workers who file wage claims or retaliation complaints, or otherwise exercise their workplace rights, are not required to disclose their immigration status. The LCO does not ask about the immigration status of individuals seeking assistance or protection under California labor law.
Workers or their family members may call the LCO’s retaliation complaint investigation helpline at 855-526-7775 for assistance if they have experienced retaliation or immigration-related threats or abuse at work, or if they have been detained or deported without receiving all wages owed.
The LCO is a division of the Department of Industrial Relations.
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Media Contact: Communications@dir.ca.gov, (510) 286-1161