State fines NGC Construction more than $7 million for failing to pay 724 workers for rest breaks, travel time
VISALIA – A Visalia drywall company fined millions of dollars for underpaying employees says it has fully cooperated with state regulators since it became aware of the issue.
“Despite the public release of an investigation and citation by the California Department of Industrial Relations, NGC Construction has been diligent in its pursuit to comply with all California labor standards,” NGC Construction wrote in a released statement earlier this month.
Late last month, the California Labor Commissioner’s Office cited Visalia-based NGC Construction more than $7 million for violations affecting 724 workers. An investigation by the California Department of Industrial Relations found that NGC paid workers a fixed amount per project known as piece-rate. The workers, who put up drywall, provided painting services and stucco application, were not paid for nonproductive time, resulting in workers earning less than minimum wage and less than the contract wages promised by the employer. Some of the company’s truck drivers were also not paid overtime.
“The law is clear: Workers earning piece rate must be paid for their rest periods and other nonproductive time while under the control of the employer,” Labor Commissioner Lilia García-Brower said. “The law ensures workers can take their required rest breaks and are paid for travel time from one worksite to another.”
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