The firm’s subcontractor client was served with a massive Civil Wage and Penalty Assessment by the California DLSE relating to its work on various public works projects. The assessment included potential liability of over $150,000, including unpaid prevailing wages, substantial Labor Code penalties, liquidated damages and interest. Fourteen workers were audited and claimed to be misclassified and unpaid or underpaid. The firm defended the subcontractor at an administrative hearing before the California Department of Industrial Relations. Based on the firm’s procedural motions and cross-examination of several of the workers, the DLSE dropped the majority of the assessment and settled the matter favorably for the subcontractor.
Counsel: Chad T. Wishchuk