U.S. Air Force file photo

published on October 28, 2021 - 2:30 PM
Written by The Business Journal Staff

A Central Valley company has been fined millions of dollars by the state for wage theft violations.

According to a press release from the California Department of Industrial Relations, the Labor Commissioner’s Office has cited Visalia-based drywall company NGC Construction, Inc. more than $7.2M for paying workers a fixed amount per project—a practice 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.

Some NGC Construction, Inc. truck drivers were also not paid overtime.

The theft violations affect 724 workers of NGC Construction.

“The law is clear: Workers earning piece rate must be paid for their rest periods and other non-productive time while under the control of the employer,” said Labor Commissioner Lilia García-Brower. “The law ensures workers can take their required rest breaks and are paid for travel time from one worksite to another.” 

The Labor Commissioner’s Bureau of Field Enforcement (BOFE) began its investigation of NGC Construction in September 2018 as part of a Labor Enforcement Task Force onsite inspection after a worker made a labor law violation report.

The citations issued will total $4,858,072 that will be payable to workers in unpaid wages, damages and premiums including:

-281,237 for minimum wage violations affecting 718 employees plus $74,693 interest

-$355,931 in liquidated damages for those minimum wage violations

-$289,364 for non-payment of contract wages affecting 722 employees

-$44, 280 for overtime affecting 43 employees

-$355,931 in liquidated damages affecting 718 employees

-$1,001,400 for itemize wage statement damages affecting 720 employees

-$2,811,006.12 for waiting time penalties affecting 568 employees

-$161 for meal period premium violations affecting 3 employees

NGC Construction must pay a total fine of $7,209,872.

e-Newsletter Signup

Our Weekly Poll

Do you believe "quiet quitting" is a problem in your workplace?
110 votes

Central Valley Biz Blogs

. . .