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California Labor Commissioner Enforces Labor Code 2810 in Landmark Janitorial Settlement

February 12, 2010

As California Employment and Labor Lawyers, we have been following the recent news of a landmark settlement that tested the 2004 addition to the California labor code, where a contractor will compensate subcontractors for depriving the workers of social security, unemployment insurance, and disability contributions.

Tidy Building Services, Inc., a New Orleans-based company, has agreed to pay $100,000 to the state of California to compensate employees who worked in janitorial services in Los Angeles and San Diego Counties, after reportedly not providing proper funding to subcontractors to ensure that employees received the full benefit of employment regulations and laws. As part of the settlement, over one hundred employees will receive anywhere between $100 and $2,000 each in compensation.

California Labor Commissioner Angela Bradstreet filed the complaint in 2008, and this is the first lawsuit where Labor Code section 2810 has been enforced--making it unlawful to subcontract janitorial or other services without providing enough funding to allow the subcontractor to comply with California laws and regulations. Employees who experience violations of this California labor code are entitled to receive damages.

In 2004, Labor Code section 2810 became law, in an effort to address specific problems low wage workers were experiencing in the employment areas of construction, janitorial services, security, farm labor, and garment industries--where violations of wage and hour laws are more prevalent, and exploitation of low wage workers is often due to language barrier and immigrant status.

This case illustrates a common industry problem that occurs when contractors submit low bids on jobs to secure the job, but don't have the resources to abide by California labor laws and properly compensate subcontractors.

Labor Code 2810 was created to treat this systemic violations of minimum labor standards by distributing responsibility, and ensuring that those entering service contracts are held accountable for an accurate assessment of service contract performance. The cost of labor law compliance under law must now be incorporated into the contract price paid.

If you or someone you know in Orange County or throughout Southern California has experienced a wage and hour issue in the workplace, our team of experienced California employment attorneys and professionals can help. Call Howard Law, PC today, for a free consultation at 1-800-872-5925.

CA Labor Commissioner Reaches Landmark Settlement Against Janitorial Company, California Department of Industrial Relations Press Release, February 09, 2010

Related Web Resources:

California Department of Industrial Relations, (DIR)