California Attorney General Rob Bonta has taken a significant stand against wage theft and tax evasion. On Tuesday, he filed 31 felony charges against a construction company, alleging that it cost the state and its workers a whopping $2.6 million. This case not only highlights the importance of prevailing wage laws but also showcases the efforts of the state to hold companies accountable for their actions.

Uncovering the Truth Behind Wage Theft and Tax Evasion

Construction Company's Alleged Crimes

Bonta filed a criminal complaint on August 26, accusing US Framing West of dodging over $2.5 million in state payroll taxes and underpaying workers on a public housing project in Cathedral City, Riverside County. The company, which builds wood framing for various projects, shorted workers by at least $40,000 when it failed to pay the prevailing wage. This blatant violation of labor laws has drawn the attention of both the state and the public. 2: Such actions by US Framing West are unacceptable. The attorney general's move serves as a reminder that no company can operate outside the law. It shows that the state is committed to protecting the rights of workers and ensuring that businesses comply with payroll tax and prevailing wage regulations.

Charges and Defendants

Bonta charged the company and two of its officials, Thomas Gregory English and Amelia Frazier Krebs, with wage and tax violations in multiple counties including Riverside, San Diego, Los Angeles, Orange, Alameda, Santa Clara, San Francisco, and Contra Costa. These charges range from grand theft and payroll tax evasion to prevailing wage theft and filing false documents with the state. 2: The fact that two defendants have surrendered and been arraigned this month indicates the seriousness of the case. It shows that the state is determined to bring justice to the workers and hold the company accountable for its actions.

Impact on Taxpayers and Workers

California taxpayers are unknowingly subsidizing criminal activity in the affordable housing industry through projects like Veterans Village. US Framing West's actions have led to workers losing about $2 billion a year to wage theft, with low-wage industry workers being the most affected. In 2020 and 2021 alone, workers filed claims for more than $300 million in stolen wages each year. 2: This not only affects the financial well-being of workers but also undermines the integrity of the construction industry. It is crucial that companies like US Framing West are held accountable to prevent such theft from continuing.

Preventive Measures and Lessons Learned

The Northern California Carpenters Regional Council tipped off the state Department of Justice to potential wage theft violations in 2019, leading to an investigation of US Framing West's other projects across the state. This highlights the importance of vigilance and cooperation between labor unions and regulatory agencies. 2: Developers should take heed and avoid doing business with companies that skirt employment and tax laws. By doing so, they can contribute to a more fair and compliant construction industry, protecting the rights and livelihoods of workers.