Julio and Veronica Mendoza, owners of NGC Construction in Visalia, are pictured with their four children. Photo contributed

A Visalia construction company is speaking out after the state revealed a $7.2 million fine for wage-theft violations.

The California Department of Industrial Relations last week issued a news release detailing the fine against NGC Construction over payment of a fixed amount per project, known as piece rate.

Workers put up drywall, provided painting services and stucco application, but were not paid for non-productive time, which resulted in workers earning less than minimum wage and less than the contract wages promised by the employer, according to the state labor commissioner.

Visalia company fined $7.2M over wage-theft violations

 

NGC Construction owner Julio Mendoza said in a statement that piece-rate payment structures are common within his industry. Once NGC was made aware of regulatory concerns related to piece-rate payments, it initiated an internal audit of its processes. The company has also cooperated with state regulators to resolve “any and all potential issues.”

Our vision is to create a better life for as many people as possible, including members of our team,” said Julio Mendoza, owner of NGC Construction. “All employees will be compensated appropriately in a timely fashion, and with interest. This is a family business and our employees are part of our extended family. We are and have been working closely with the California Department of Industrial Relations to resolve any outstanding issues.”

NGC is a family owned business owned and operated by Mendoza with his wife Veronica. Mendoza is a native of a small town in Mexico who would go on to build a rapidly growing business.

“Since its earliest days, NGC Construction has adopted the core values of being an employee first-company focused on giving back to the community, investing in families, capturing opportunities, and giving respect,” according to the NGC statement. “These values have allowed NGC Construction to stand apart and set a higher bar for the industry and our community.”