News
November 27, 2024

Out-of-State Construction Company Charged with Violating California Labor Laws

Caroline Raffetto

A construction company faces criminal charges for wage theft and failing to pay millions in state payroll taxes.

The alleged violations by US Framing West occurred across San Diego, Riverside counties, and the state, officials confirmed on Tuesday. Two employees of the company are also facing charges.

The announcement follows the surrender and arraignment of the defendants earlier this month in Los Angeles Superior Court, according to California Attorney General Rob Bonta.

Between 2018 and 2022, US Framing West allegedly committed grand theft, tax evasion, and wage theft while filing false documents with the state.

A 31-count complaint claims the company failed to pay over $2.5 million in payroll taxes over four years and underpaid workers by about $40,000 on a public works project in Cathedral City.

The company, based in Kentucky, could not be reached for comment.

“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,” Bonta stated. “My office will not stand by when businesses – or the individuals who run them – steal from workers and defraud the state.”

The investigation, led by the state Department of Justice, found that US Framing West secured high-paying framing jobs on major Southern California projects, subcontracting labor to unlicensed workers. The company is also accused of failing to file taxes with the California Employment Development Department.

Bonta noted the investigation started after the Northern California Carpenters Regional Council alerted the DOJ to potential wage theft at an Oakland job site. This led to a joint investigation involving several state agencies across multiple counties, including Los Angeles and Orange.

News
November 27, 2024

Out-of-State Construction Company Charged with Violating California Labor Laws

Caroline Raffetto
Compliance
California

A construction company faces criminal charges for wage theft and failing to pay millions in state payroll taxes.

The alleged violations by US Framing West occurred across San Diego, Riverside counties, and the state, officials confirmed on Tuesday. Two employees of the company are also facing charges.

The announcement follows the surrender and arraignment of the defendants earlier this month in Los Angeles Superior Court, according to California Attorney General Rob Bonta.

Between 2018 and 2022, US Framing West allegedly committed grand theft, tax evasion, and wage theft while filing false documents with the state.

A 31-count complaint claims the company failed to pay over $2.5 million in payroll taxes over four years and underpaid workers by about $40,000 on a public works project in Cathedral City.

The company, based in Kentucky, could not be reached for comment.

“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,” Bonta stated. “My office will not stand by when businesses – or the individuals who run them – steal from workers and defraud the state.”

The investigation, led by the state Department of Justice, found that US Framing West secured high-paying framing jobs on major Southern California projects, subcontracting labor to unlicensed workers. The company is also accused of failing to file taxes with the California Employment Development Department.

Bonta noted the investigation started after the Northern California Carpenters Regional Council alerted the DOJ to potential wage theft at an Oakland job site. This led to a joint investigation involving several state agencies across multiple counties, including Los Angeles and Orange.