California AG Charges US Framing West With Wage Theft, Tax Evasion
November 26, 2024 - LOS ANGELES – California Attorney General Rob Bonta has announced that 31 criminal charges, along with two enhancements, have been filed against US Framing West and two of its employees. These charges stem from numerous violations of state labor laws. This legal action follows the surrender and arraignment of the company and its employees in Los Angeles Superior Court earlier this month. Between 2018 and 2022, US Framing West allegedly provided framing services for various construction projects across California, using unlicensed subcontractors. During this period, the company is accused of grand theft, payroll tax evasion, prevailing wage theft, and filing fraudulent documents with the state.
In the complaint, Bonta’s office claims that US Framing West failed to pay over $2.5 million in state payroll taxes and underpaid its workers by approximately $40,000 on a public works project in Cathedral City.
“California has some of the strongest worker protections in the country, but there are still too many who are willing to skirt the law to make an extra buck,” stated Attorney General Bonta. “My office will not stand by when businesses – or the individuals who run them – steal from workers and defraud the state. I want to thank our union partners for alerting us to this case and for fighting every day to ensure good jobs, fair wages, and safe conditions for California workers. I also want to express my gratitude to the state agencies who assisted with our investigation. California workers will always have a partner and an advocate in my office – so if you have information about potential labor law violations, please consider reporting it at oag.ca.gov/report.”
US Framing West, which specializes in framing contracting, was revealed to have secured lucrative framing jobs on large California construction projects and then subcontracted out the physical labor to unlicensed subcontractors. The investigation began after the Northern California Carpenters Regional Council alerted the Department of Justice (DOJ) to suspected wage theft on an Oakland construction site. With assistance from the California Department of Insurance, California Department of Industrial Relations (DIR), and the Employment Development Department (EDD), DOJ launched a comprehensive investigation into US Framing West for alleged violations of state labor laws and tax evasion on construction projects across Alameda, Los Angeles, Contra Costa, Orange, Riverside, San Diego, San Francisco, and Santa Clara counties.
Further allegations include that US Framing West was involved in prevailing wage theft and submitting false documents to DIR concerning a public works project in Cathedral City. Public works projects that involve over $1,000 in public funding require workers to be paid the “prevailing wage.”
Attorney General Bonta remains committed to protecting workers' rights and addressing unfair labor practices. In 2024, Bonta defended wages and overtime in the West Coast Drywall lawsuit and helped secure a settlement with Amalfi Stone & Masonry Company, Inc., addressing unfair competition, payroll tax issues, and labor violations. In 2023, he initiated a groundbreaking investigation into gender discrimination in the National Football League, supported a proposed rule by the Federal Trade Commission to limit non-compete agreements, and continued his advocacy for the rights of in-home healthcare workers, transportation workers, and immigrant children.
From a construction owner's perspective, the allegations against US Framing West serve as a stark reminder of the critical importance of compliance with labor and tax laws in the industry. Ensuring fair wages, properly vetting subcontractors, and adhering to legal requirements not only protect workers but also shield businesses from reputational damage and legal consequences. This case underscores the need for owners to implement robust compliance checks and partner with contractors who prioritize ethical practices. As stewards of construction projects, owners play a key role in fostering a fair and transparent industry, where all stakeholders—from workers to taxpayers—are treated with integrity.
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