CALIFORNIA – The owner of a flooring company in San José, California, has been sentenced to four months in jail and a significant fine for failing to pay his workers over $1 million in unpaid overtime wages.
The owner of All Bay Floor pleaded guilty to underreporting his payroll to reduce workers’ compensation premiums. This fraudulent act was discovered by the Santa Clara County District Attorney’s Office during an insurance audit.
A judge sentenced the business owner to four months in prison and fined him $580,000. He was also ordered to complete 200 hours of community service. District Attorney Jeff Rosen warned about the long-term consequences of fraud: “What you think you might be saving in the short term will cost you much more than money in the long run.”
The investigation began after an insurance audit revealed discrepancies in the number of employees reported on the company’s payroll. Prosecutors discovered that the owner did not pay 18 employees the required time and a half for overtime hours worked, resulting in approximately $1 million in unpaid wages.
One employee was entitled to $60,000 in unpaid overtime. Other employees may also be entitled to additional compensation for overtime, raising the total amount owed to a possible $1.7 million.
The District Attorney’s Office suggests that any worker who believes they are owed overtime wages file a wage claim on the Labor Commissioner’s Office website. This measure aims to ensure that workers receive fair compensation for the extra time worked.
This case highlights the importance of complying with labor laws and the severe consequences of attempting to evade them. Labor justice ensures workers’ rights are protected and employers fulfill their legal obligations.
