Los Angeles

California AG Charges US Framing West and Employees with Wage Theft and Tax Evasion

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Published on November 27, 2024
California AG Charges US Framing West and Employees with Wage Theft and Tax EvasionSource: Office of the Attorney General

The California Attorney General has charged US Framing West and two of its employees with 31 criminal counts, including wage theft and tax evasion. Rob Bonta's office disclosed the charges following their surrender and an arraignment in Los Angeles earlier this month. The accusations stem from a series of framing projects across the state, with allegations highlighting the hiring of unlicensed subcontractors and failure to file necessary taxes.

In an alarming revelation from the state DOJ, US Framing West, a construction framing company is alleged to have bypassed over $2.5 million in state payroll taxes from 2018 to 2022 and underpaid workers by nearly $40,000 at a Cathedral City public works project. "California has some of the strongest worker protections in the country, but there are still too many who are willing to skirt the law to make an extra buck," said Attorney General Bonta in a statement. He credited union partners for bringing this situation to light, underscoring a collective effort to ensure equitable working conditions throughout California.

The investigation was initiated after the Northern California Carpenters Regional Council flagged potentially illegal wage practices at an Oakland construction site. Subsequently, state agencies, including the California Department of Insurance, Department of Industrial Relations (DIR), and the Employment Development Department (EDD), joined forces in the inquiry stretching across multiple California counties, as detailed by the Office of the Attorney General.

The infringement of a prevailing wage on a public works project in Cathedral City is among the alleged violations, with DOJ asserting that US Framing West also submitted false paperwork to the DIR. As set out by law, any project receiving more than $1,000 of public funding demands all its workers are compensated the existing "prevailing wage." Attorney General Bonta’s recent efforts underscore a continued fight to protect workers, including his 2024 involvement in the West Coast Drywall lawsuit and a settlement with Amalfi Stone & Masonry Company to resolve various labor infractions.

While the charges filed bring a sense of justice in motion, it is vital to remember that each defendant in such cases is presumed innocent until proven guilty. Those in California suspecting labor law violations are encouraged to report them to the Office of the Attorney General at oag.ca.gov/report.