Undocumented construction workers face heightened risk
Los Angeles, CA On November 26, Rob Bonta, California’s Attorney General, announced that his office had filed 31 criminal charges and two enhancements against US Framing West and two employees for multiple violations of California labor laws. US Framing allegedly underpaid its workers by roughly $40,000 at a public works project in Cathedral City. The criminal charges cite the company for grand theft, payroll tax evasion, prevailing wage theft, filing false documents with the State, and failing to pay more than $2.5 million in state payroll taxes during this period.
California v. US Framing is unusual because violations of wage and hour laws are generally dealt with administratively, or through civil wage and hour lawsuits. The “why” remains a complicated story, but it may have a great deal to do with the nature of the construction industry in Southern California and the struggle to protect the rights of vulnerable undocumented workers.
Violations of Section 1778 of the California Labor Code
Counts 4 through 22 of the criminal complaint are identical, accusing the defendants of “taking and receiving a portion of worker’s wage on a public work, a felony, in violation of Labor Code Section 1778.” Each of these counts closely tracks the language of the statute, individually naming one of nineteen workers from whom the defendants:
“[d]id unlawfully take, receive, and conspire with another to take and receive for his own use and the use of any other person, a portion of wages of a workman or working subcontractor [name] in connection with services rendered upon a public work.”
Criminal charges are fundamentally different from the usual California labor lawsuit. Criminal law focuses first on the deterrence and punishment of law breakers. Efforts to make the victims of the crime whole come later if at all.
Why pursue an endemic underpayment problem this way? It may not bring any direct relief to the workers who have been cheated. On the other hand, even workers who prevail in a civil lawsuit may recover nothing from an underground operator with no cash assets. Finally, it must be recognized that not all workers feel able to pursue administrative or civil remedies.
A Shifting View of Criminal Prosecutions
According to the Economic Policy Institute, the shift toward criminal prosecution of at least some labor abuses seems to have been underway as early as 2021. Between 2015 and 2022, the state’s Labor Commissioner’s Office had reportedly investigated only 16 labor violation cases that resulted in criminal charges. Even now, workers who believe that their wages were stolen generally file claims with the Labor Commissioner’s office, rather than reporting it to law enforcement. These are usually handled administratively.
The political winds may be shifting, however – perhaps in recognition that an ounce of deterrence may be worth a pound of cure. In addition, civil remedies simply may not be realistically available to those most likely to be the victims of wage theft.
Frustration and Speculation Abound
At the time of the announcement, some political observers expected Bonta to announce a run for governor, and speculated that publicizing a high-profile labor case might help him build support from unions. In addition, worker advocates have become increasingly frustrated about the apparent inability of the justice system to protect vulnerable workers.
Who Gets Hurt?
Wage theft can happen in a variety of different ways — employers do not pay workers for all hours worked, may not pay the minimum wage, skip overtime pay or don’t allow legally required breaks. In California, workers in low-wage industries and those who live and work in the legal shadows are the most affected.
According to a study conducted by the Center for Economics of Social Issues at California Lutheran University, 28.7 percent of the construction workforce was undocumented in Los Angeles County in 2024. The harm goes beyond wage theft.
Construction companies may plead ignorance about the legal status of workers, hired as independent subcontractors through labor brokers. Often untrained and unprotected, these workers move from site to site, have little job security, and less ability to negotiate the terms of their employment. They can be:
vulnerable to exploitation because of their immigration status. They may fear retaliation or deportation if they report wage theft or other labor law violations;
without access to legal resources and support to protect their rights; and
hindered by language barriers.
These are not workers who are likely to pursue administrative claims or civil lawsuits.
California v. US Framing may be an important step in the ongoing fight for workers’ rights in California. By addressing alleged violations of Section 1778 and other labor laws through criminal prosecutions, the state may be able to better protect workers' rights before the violations occur and regardless of immigration status.
If you or a loved one have suffered losses in this case, please click the link below and your complaint will be sent to an employment law lawyer who may evaluate your California Labor Law claim at no cost or obligation.