Yes, DIR Can File Criminal Charges

Read the entire DIR Civil Wage Assessment against SBD Development 5/1/15 here.

Here is a case with SBD Development working on a project - Fairview Development Center for the California Department of General Services (DGS) in Orange County. The Assessment determined that $283,115.20 in unpaid prevailing wages and statutory penalties was due.

CRIMINAL CHARGES

At the Prehearing Conference, held on November 24, 2014, counsel informed the Hearing Officer that a parallel criminal case against SDB concerning its wage violations on the Project had concluded with a plea bargain agreement under which SDB entered a guilty plea and agreed to pay restitution.

In late 2012, DJM Construction Company, Inc. (DJM) entered into a public works contract with DGS regarding the Project. DJM subsequently subcontracted with SDB to install fire sprinklers for the Project. SDB workers performed work on the Project from approximately February 9 to June 22, 2013. The applicable prevailing wage determination and classification for all SDB workers on the Project is ORA-2012-2 (Fire Sprinkler Fitter).

The evidence establishes that SDB failed to pay the required prevailing wages to 14 of its workers on the Project in the aggregate amount of $96,000.40 and failed to pay required training fund contributions in the aggregate amount of $9,514.80. In addition, DLSE assessed $177,600.00 in penalties under Labor Code section 1775, at the maximum rate of $200.00 per violation, for 888 instances of failure to pay the applicable prevailing wages.

OUTCOME

SDB underpaid its workers on the Project in the aggregate amount of $96,000.40 in prevailing wages and failed to pay required training fund contributions in the aggregate amount of $9,514.80.

Penalties under section 1775 are due in the amount of $177,600.00 for 888 violations at the maximum rate of $200.00 per violation.

Because none of the unpaid wages were paid within 60 days after service of the Assessment, liquidated damages are due in the full amount of the unpaid wages, $96,000.40, and are not subject to waiver under section 1742.1, subdivision (a).

The amounts found remaining due in the Assessment as affimed by this Decision are as follows:

Wages due: $96,000.40
Training funds due: $9,514.80
Penalties under section 1775, subdivision (a): $177,600.00
Liquidated damages: $96,000.40
TOTAL: $379,115.60

Interest shall accrue on the unpaid wages in accordance with section 1741, subdivision (b).

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