The owners of a Vancouver, Wash., excavation business must pay $356,000 to compensate for unpaid overtime wages and workers’ compensation premiums.
Jerry and James Schram, brothers and business partners in Schram’s Excavating, also pleaded guilty to misdemeanors for the unpaid wages. Jerry Schram will serve 30 days in jail.
The state Department of Labor & Industries says the company also pleaded guilty to a felony for hiding information used to set its workers’ compensation insurance premiums.
The settlement was approved in Clark County Superior Court.
Carl Hammersburg, manager of L&I’s Fraud Prevention and Compliance Program, says the settlement illustrates that it’s unfair when companies can be underbid by competitors that don’t pay their employees properly or avoid insurance costs.
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