California Labor Commissioner Fines Contractor $1.1M for 74 Workers

The California Labor Commissioner’s Office collected $1.1 million in wages and penalties resulting from a prevailing wage assessment against general contractor Stronghold Engineering and its subcontractor, Perry Coast Construction, both based in Riverside.

The wages collected are to compensate 74 workers for a reported underpayment of prevailing wages owed for their time working at the Monterey Conference Center, as well as Portola Plaza in Monterey.

California Public Works laws were enacted to protect and benefit workers and the public. The laws guarantee minimum wages on publicly funded projects and provide opportunities for employment to apprentices. The law requires workers on construction projects financed with $1,000 or more in public funds to be paid no less than the prevailing wage.

The Labor Commissioner’s Office opened its investigation in May 2017 after a complaint of public works violation was filed by a worker claiming underpayment of prevailing wages, as well as unpaid overtime and holiday rates, fringe benefits, and travel expenses.

The investigation also reportedly found that Perry Coast Construction failed to comply with apprenticeship standards or with public works contractor registration requirements.

The Labor Commissioner’s Office cited Stronghold Engineering and Perry Coast Construction in October 2020 for underpayment of prevailing wages to 74 workers, liquidated damages and interest on the wages and training funds. Both the contractor and subcontractor filed a joint request for review in December 2020, but eventually agreed to resolve all claims with the Labor Commissioner’s Office for $1.1 million to be paid to the affected workers, and withdrawing their joint request for review in July 2023.

Topics California Contractors