If you are an employee of a company that subcontracts services for another business, you may be interested to know that if your company fails to adhere to California laws regarding wages, breaks, and so forth, you may be entitled to damages from multiple sources. A case in point involves the Cheesecake Factory, which contracted with Americlean Janitorial Services Corporation for cleaning services. Americlean then hired subcontractors Magic Touch Commercial Cleaning. Magic Touch failed to pay minimum wages, denied workers rest breaks, and ignored overtime rules. When the California Labor Commissioner’s Office got wind of the problem, they wound up assessing the three companies for a combined total for $4.57 million in fines.

California Law Butts up Against Specifics of This Subcontractors Case

According to California law workers are entitled to specific rest and meal breaks, including:

• A 10-minute break for every four hours on shift;
• These rest breaks should be as close to the middle of the work period as possible;
• They must be in addition to toilet breaks;
• Meal periods must be provided for every five hours worked, and must be a minimum of 30 minutes long;

At three different California Cheesecake Factory franchises, cleaning personnel were required to work daily shifts without appropriate rest and meal breaks. They typically worked roughly 10 hours of overtime weekly, but were paid only a flat rate for eight hours of work each day.

Businesses are responsible for workplace violations committed by their subcontractors according to California law SB 588,  putting Cheesecake Factory, Americlean, and Magic Touch all in a precarious position. Workers received almost $4 million. Liquidated damages were calculated based on the money underpaid in wages plus interest, in addition to a full hour of pay for each day workers were denied their 10-minute rest breaks. Furthermore, the companies shared over $500,000 in civil fines.  

Thanks to SB588, big corporations can no longer hide behind contracts with smaller companies. When violations occur under their umbrella, they share in culpability with their subcontractors. The Labor Commission is streamlining procedures to speed up collections on unpaid wages. Employers are now required to post bond for and judgments related to these liabilities, and get the employees paid. [Read more…]

Wage disputes are avoidable. Employers are required to pay employees their due on time. It just makes sense, and the principle is supported in both state and federal law. Nonetheless, wage disputes are not uncommon in California. If you find yourself fighting for earnings to which you are legally entitled, a local employment attorney may be worth visiting.

Wage Disputes – When is Pay Due?

Every employer has their own systematic pay schedule for salaried, hourly, and commissioned employees. Whatever schedule has been agreed to should be adhered to, including agreements regarding bonuses, vacation pay, and/or benefits.

As a general rule, hourly employees are paid twice monthly, or, in particular situations, once monthly.

Work periods should be paid for on paydays immediately following the work period.  For example, work done from the first to the 15th of a month should be paid for within the following ten days.  If a particular payday happens to fall on a holiday or a Sunday, paychecks should be available on the following business day. Any payments that are later than this could evoke stiff penalties.

Administrative Pay

For administrators, executives, and other professionals who are paid on a monthly basis, paychecks for a given month of work must be available no later than the 26th day of the month.

Agricultural Workers

Agricultural workers must be paid within one week following work. For work performed between the 1st and 15th of the month, payment must be made no later than the 22nd of the month.

Garment Workers

When garment workers (those employees participating in any aspect of garment or accessory production) are not paid earned wages, they may pursue payment from either the employer or the contracting company as per California Labor Code 2673.1.

Subcontractors

Similar to garment workers, subcontractors’ employees may be able to receive payment from a general contractor if the subcontractor is unlicensed.

Temporary Agencies

Employees put to work by a temporary service are to be paid on a weekly basis, unless the job assignment is merely day-to-day work. In that case, wages should be paid at the day’s end.

Wage Disputes Over Wages After Being Discharged

Unless an employee resigns while under a contract for a defined time period, an employee who quits without notice is entitled to owed wages within 72 hours. For workers who provide 72 or more hours’ notice, payment may be expected at the close of the final workday.

Penalties for Employer Who do Not Pay on Time

Employers could get stuck with much more than the original wage due if they lose a wage dispute.  

• They could pay an additional 30 days of wages;
• They could be responsible for interest on late wages;
• The court could assign them all attorney’s fees and court costs;
• The manager or an agent of the company could be fined $1,000;
• That manager or agent could face six months of imprisonment.

[Read more…]