Calif. AG Sues Drywall Contractor

November 1, 2007

  • November 6, 2007 at 12:55 pm
    Mark Anthony says:
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    Start by revoking his contractor’s license.

  • June 12, 2008 at 1:47 am
    Mo Jourdane says:
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    PRESS INFORMATION

    Follow up on earlier story

    Several months ago you published a story of the Attorney General filing an action against Brinas Corporation, a drywall contractor. The Attorney General accused Brinas of multiple flagrant violations of law including
    • Failure to pay minimum wage
    • Failure to pay overtime pay
    • Failure to provide paid rest breaks
    • Failure to provide a lunch break
    • Failure to provide the tools necessary to perform the work
    • Failure to provide pay check subs
    • Failure to provide accurate wages information to the Employment Development Department
    • Failure to provide accurate information to the State Compensation Insurance Fund
    The attorney General alleged that workers suffered substantial monetary losses and are entitled to restitution. Attached is a judgment of the Los Angeles Superior Court enjoining Brinas from continuing the illegal practice and ordering Brinas Corporation to pay almost a million dollars restitution and $450,000 penalty.

    This is the first court order following Jerry Brown’s attack on the underground economy. An action the attorney general filed, shortly after the Brinas suit, against four drywall contractors including Interwall Development Systems is currently pending. For further information and the opportunity to speak with the Attorney General call Gareth Lacy (510) 522-4189.

    SUPERIOR COURT OF THE STATE OF CALIFORNIA
    FOR THE COUNTY OF LOS ANGELES

    PEOPLE OF THE STATE OF CALIFORNIA, ex rel. EDMUND G. BROWN JR., Attorney General of the State of California,
    Plaintiff,

    v.
    BRINAS CORPORATION and DOES 1 through 100, inclusive,
    Defendant. )
    )
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    ) CASE NO. BC379499

    DEFAULT JUDGMENT

    Date:
    Time:
    Dept.: 18
    Judge: The Honorable Helen Bendix

    Trial Date:
    Action Filed:

    THE COURT FINDS:
    On October 31, 2007, the People of the State of California filed the instant complaint against Brinas Corporation (“Brinas”). On November 25, 2007, the complaint was personally reserved on Brinas’s designated agent. Brinas did not respond. On January 25, 2008, the People filed a Statement of Restitution, deemed an amendment to the complaint. In the Statement, the People requested lost wages by workers in the amount of $927,714.51 and a $2,500 penalty for each violation of the Labor Code. The declarations show that during the four years preceding filing of the complaint herein Brinas has committed violations of the Labor Code. On January 28, 2008, the Statement of Restitution was personally served on Brinas’ designated agent. Brinas did not respond. On February 29, 2008, no representative of Brinas appeared at the Case Management Conference. On April 3, 2008, the clerk entered default against Brinas.

    FOR THE ABOVE-STATED REASONS, THE COURT ENTERS THE FOLLOWING JUDGMENT:
    1. The Brinas Corporation, its successors, agents, representatives, employees, and all persons acting in concert with defendant is enjoined and restrained from engaging in unfair competition as defined in Business & Professions Code, section 17200 as follows:
    a. Paying employees less than the state required minimum wage in violation of Labor Code section 1182.12 and applicable Industrial Welfare Commission Orders, involving but not limited to Industrial Welfare Commission General Wage Order No. 16-2001, subdivision 4, as adopted, as amended and republished by the Department of Industrial Relations effective January 1, 2007;
    b. Failing to pay employees overtime pay in violation of Labor Code section 510 and applicable Industrial Welfare Commission Orders, including but not limited to Industrial Welfare Commission Wage Order No. 16-2001, subdivision 3;
    c. Failing to timely pay uncontested wages owed to employees in a timely manner in violation of Labor Code section 204;
    d. Unlawfully withholding part of the pay owed to employees in violation of Labor Code sections 216, 221, and 223;
    e. Failing to pay employees all wages earned and owing at the time of their separation from employment in violation of Labor Code sections 201, 202, and 203;
    f. Requiring employees to work during meal breaks in violation of Labor Code section 226.7 and applicable Industrial Welfare Commission Orders including but not limited to Industrial Welfare Commission Wage Order No. 16-2001, subdivision 10;
    g. Failing to provide employees with rest periods in violation of Labor Code section 226.7 and applicable Industrial Welfare Commission Orders including but not limited to Industrial Welfare Commission Wage Order No. 16-2001, subdivision 11;
    h. Failing to provide employees with tools necessary to perform the work they were hired to perform in violation of Labor Code Section 2802 and applicable Industrial Welfare Commission Orders including but not limited to Industrial Welfare Commission Wage Order No. 16-2001, subdivision 8(B) ;
    i. Failing to provide employees with an itemized written statement reflecting their gross wages, the number of hours the employee worked, piece rate earnings, the applicable piece rate, all deductions taken, net wage earned, the inclusive dates of the pay period, the name of the employee and his or her social security number, and the hourly rate in effect during the pay period, in violation of Labor Code section 226, and;
    j. Paying employees with cash or non payroll checks without withholding and paying state income tax contributions, state unemployment insurance contributions, and contributions to the state disability fund in violation of Unemployment Insurance Code sections 976, 986, 987, 1110, and 13020.

    2. The Brinas Corporation shall pay restitution pursuant to Business & Professions Code, section 17203 in the amount of $927,714.51. Said restitution shall be payable to the workers identified, in the amount stated. If Brinas Corporation lacks funds to fully pay restitution, the Department of Justice: shall distribute the amount received for the workers proportionally.

    3. The Brinas Corporation shall pay statutory penalties pursuant to Business & Professions Code, section 17206 in the amount of $450,000.

    4. The Brinas Corporation shall pay the People costs of suit in the amount of $677.33.

    Dated: June 4, 2008

    Marvin M. Lager
    JUDGE OF THE SUPERIOR COURT



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