San Francisco, California – A recent investigation by the U.S. Department of Labor has led to the recovery of over $450,000 in back wages and compensation for 62 employees of two mushroom farms in Half Moon Bay.
This action follows a tragic incident in January 2023, where a disgruntled worker killed seven fellow migrant workers. The employers faced fines after investigators uncovered underpayments and unsafe housing conditions.
The Department of Labor’s Wage and Hour Division reached administrative agreements with Concord Farms Inc. and California Terra Gardens for multiple violations of the Migrant and Seasonal Agricultural Worker Protection Act and the Fair Labor Standards Act. The investigation, initiated after the tragedy, revealed poor labor practices and non-compliance with federal regulations at both farms.
At California Terra Gardens, investigators found 39 workers living in deplorable conditions: shipping containers, garages, and run-down trailers. These accommodations forced workers to sleep on dirty mattresses, surrounded by insects and trash. The farm owners, Xianmin Guan and Liming Zhu, also illegally deducted money from workers’ wages for the substandard housing, according to the investigation.
Two miles away, at Concord Farms, investigators discovered that owner Grace Tung housed workers in makeshift, moldy rooms within a greenhouse infested with insects. Tung violated federal regulations by paying workers the regular rate for all hours worked, and failing to comply with overtime and off-the-clock work pay requirements.
Alberto Raymond, Assistant District Director of the Wage and Hour Division, stated in San Francisco: “Our investigators found California Terra Gardens and Concord Farms workers in repugnant conditions, forced to sleep near garbage and surrounded by insects. The Department of Labor is determined to hold employers accountable for neglecting their legal responsibilities to provide adequate housing and pay all legally earned wages.”
Concord Farms agreed to pay a total of $370,107 in overtime wages and damages to 10 workers, $4,242 in back wages to 23 workers, and $29,049 in civil penalties for various violations. California Terra Gardens agreed to pay $84,074 to 39 workers to recover illegal housing deductions, and $42,494 in civil penalties to resolve violations related to housing, wage disclosures, and record-keeping.
The accused in the January 2023 murders, who worked at Terra Gardens and previously at Concord Farms, was formally charged in January 2024.
