Brown sues drywall company for $5 million in W&H violations — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Brown sues drywall company for $5 million in W&H violations

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California’s attorney general recently filed suit against a Southern California drywall contracting firm for what he called “a sophisticated and heartless scheme” to cheat its employees out of wages.

In January, Attorney General Jerry Brown sued Irvine-based Interwall Development Systems, claiming that it failed to pay its employees overtime, did not provide employees rest periods, did not provide paycheck stubs or other accurate information on the number of hours worked and sums deducted, and failed to pay the prevailing wage on public works projects. As a result, Brown claims, Interwall and several other interrelated companies owe employees at least $5 million in unpaid overtime and other benefits required under state law.

According to Brown, Interwall’s practices gave it an unfair competitive advantage on at least 150 drywall installation projects. Brown alleges that as part of the scheme, Interwall was able to avoid paying overtime to employees by having affiliated companies pay for different portions of their workweeks.

In addition to restitution of the unpaid wages and benefits—plus civil penalties of up to $2,500 per violation—Brown also sought an injunction preventing the company from continuing its allegedly unlawful practices.

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