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California Wage and Hour Lawsuit--Labor Commissioner Sues FLM Law Center for $17.5 Million

September 22, 2009

In Orange County Superior Court last week, California Labor Commissioner Angela Bradstreet filed a wage and hour lawsuit against Federal Loan Modification Law Center, LLP (FLM Law Center) as well as other related individuals and affiliated entities. In the suit, Bradstreet accused FLM Law Center of failing to compensate employees for actual hours worked--violating Labor code law.

The Division of Labor Standards Enforcement (DLSE) investigated FLM Law Center after receiving multiple claims in May of this year reporting wage violations. According to Reuters, the information obtained in the investigation proved that FLM Law Center had full knowledge of the violations, yet continued to willfully and knowingly fail to pay employees on scheduled paydays as required by law.

The lawsuit seeks unpaid wage damages of over 1,000,000, as well as liquidated damages and penalties of more than $16.5 million dollars--for not paying employees minimum wage for all hours worked, failure to pay total wages at the end of an employee's term, and for not paying overtime.

FLM Law Center opened in 2008 and lists addresses in both Woodland Hills, and Irvine, California.

The mission of the DLSE is to enforce minimum labor standards and to ensure that employees are not forced or permitted to work under substandard or unlawful conditions. The DSLE investigates discrimination and public works complaints, adjudicates wage claims, and enforces state labor law and Industrial Welfare Commission wage orders.

Bradstreet has been the Labor Commissioner for the State of California since June 2007. She commented that FLM Law Center has committed blatant Labor Code violations by not paying their employees as required by law. "This lawsuit not only seeks restitution for their employees, but should also send a strong message to all employers that we won't stand for a company that cuts corners at the expense of their workers."

CA Labor Commissioner Files $17.5 Million Lawsuit Against FLM Law Center, Reuters, September 15, 2009

Related Web Resources:

Division of Labor Standards Enforcement, California Department of Industrial Relations

Our Anaheim Labor and Employment Lawyers know how to defend wage and hour claims and will help find restitution in your dispute. In cities throughout Orange County, California, contact Howard Law, PC today.