The firm represented a general contractor and its bonding company on a public works school project in Southern California. The labor compliance program of the school district alleged that a subcontractor on the project willfully violated the California Prevailing Wage Law, by misclassification, under-reporting, and underpayment of prevailing wages and overtime. A notice of withholding of contract payments was issued against the general contractor and subcontractor for nearly a quarter of a million dollars. The firm asserted the innocent general contract “safe harbor” defense under the California Labor Code, as well as a statute of limitations defense under Labor Code section 1741. Following our pre-hearing motion to the California Director of Industrial Relations, the entire case was withdrawn and dismissed, resulting in zero dollars of liability for our client and surety.
Counsel: Chad T. Wishchuk