WAGE and HOUR LAW: Davis Contractor Penalized for non-payment of Employee Wages

June 16, 2010

Davis – The state Labor Commission has ordered Russell/Thomson Inc. to pay $ 1.3 million in wages, and fines amounting to $200, 000 for its failure to pay 74 employees with proper wage, according to a news statement published in the agency’s website.

State Labor Commissioner Angela Bradstreet said the violation was serious and believed the “employer had intentionally underpaid its workers”. The agency also issues a civil wage and penalty assessment to collect the money owed to the workers.

The investigation conducted by the agency revealed that the employee willfully violated the law by failing to pay proper prevailing wages to its workers, including payment of overtime wages. The employer also misclassified workers by identifying them as lower paying positions rather than skilled positions. In addition, the employer was also charged with falsifying payroll records.

The agency has reiterated its concern for the workers and warned contractor employers to comply with the law or face stiffer penalties.