Two Contractors Barred over California Overtime Violations

Sacramento, CATwo California contractors have been prevented from bidding on projects in the state for a period of three years, due in part to their non-payment of California overtime and other violations of California labor laws.

According to the latest issue of Business & Finance Week, due out on 3/27/10, Soo Kim Electric Company and Lucid Electric have been prohibited from participating in the bidding process for any public works project for three years. The two contractors are also barred from actually receiving any public works projects for a similar three-year term.

The action is the result of ongoing enforcement initiatives by the Office of the California Labor Commissioner, whose mandate is to ensure employees are treated fairly—and that employers are taken to task for taking advantage of their employees.

In announcing the debarment, California Labor Commissioner Angela Bradstreet revealed that the two contractors failed to pay the requisite wages, including overtime when warranted, and that they misrepresented their record-keeping and prompted their employees to lie about how much money they were making.

"Our investigation revealed the contractors' intent to defraud by coercing employees to lie about their wages, failing to pay proper prevailing wages and overtime and failing to keep records of employee work hours," stated Bradstreet. "These deliberate and willful attempts to skirt the law will not be tolerated as they take unfair advantage of employees as well as tax payers who fund these public works projects."

An Order of Debarment issued against Soo Dong Kim, doing business as Soo Kim Electric Company, and Hyo Nam Jung, doing business as Lucid Electric, goes into force on April 19, due to the contractors' "deliberate and complete disregard of the public works laws," according to Business & Finance Week.

It is not clear if the two contractors will be allowed to continue work on any current public works projects, or projects for which they bid prior to the April 19 enforcement.

It was also not mentioned whether or not employees will be compensated for their lost wages.