Southland Cleaning Service Ordered to Pay $3.5 Million in Back Wages
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Tuesday, April 21, 2009 |
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In
the latest of a series of court actions pursued by the U.S. Department
of Labor, a federal judge has ordered a Southern California cleaning
service and its owners to pay $227,791 in post-judgment interest plus
$2,400 in daily fines for failing to follow a 2007 order to pay nearly
$3.5 million in back wages plus more than $1 million in liquidated
damages to 385 workers.
"The Department of Labor will not
hesitate to take action to ensure workers receive the compensation they
have worked hard for and earned," said Secretary of Labor Hilda L.
Solis.
The investigation by the Labor Department's Wage and Hour
Division leading to the 2007 order determined that Gardena,
Calif.-based Southern California Maid Services and Carpet Cleaning had
improperly classified employees as independent contractors and failed
to pay them at least minimum wage and overtime as required under the
federal Fair Labor Standards Act (FLSA).
In a court order signed
Aug. 21, 2007, a federal judge ordered the company and its owners,
Sergio Maldonado and Lorenza Rubio, both of Rolling Hills, Calif., to
pay the workers back wages plus $1,058,973 in liquidated damages. The
company and its owners have failed to pay any of the amounts due,
placing them in contempt. The post-judgment interest was calculated at
a rate of 4.44 percent from the date of the original summary judgment.
In addition, the order imposes fines of $2,000 per day against Southern
California Maid Service and Carpet Cleaning, and $200 each per day
against Maldonado and Rubio. The order will remain in effect and daily
fines will continue to accrue until the defendants pay the back wages
in full.
The West Covina District Office of the Wage and Hour
Division learned of the employer's practices through its participation
in the Employment Education and Outreach (EMPLEO) partnership. EMPLEO
is an alliance of organizations and government agencies that assist
Spanish-speaking workers and employers with work-related concerns.
Callers are referred to EMPLEO partners for assistance by trained
volunteers answering the EMPLEO toll-free helpline, 877-55-AYUDA
(552-9832).
For more information about the FLSA, call the
Department of Labor's toll-free helpline at 866-4US-WAGE (487-9243).
Information is also available on the Internet at www.wagehour.dol.gov
or by calling the division's West Covina District Office at
626-966-0478.
Solis v. Southern California Maid Services and Carpet Cleaning Inc.
Case Number: CV 06-3903 AG (MANx), U.S. District Court for the Central District of California
Wage and Hour/ FLSA
Exemptions From Minimum Wage and Overtime - Effective Aug 23, 2004
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