The Underground Business and The Labor Enforcement Task Force

The Labor Enforcement Task Force. While it sounds like something from a bad dystopian movie, in reality, the Labor Enforcement Task Force (LETF) is very much benign and exists to help both employee and employer. LETF is a coalition of California State government enforcement agencies collaborating with local agencies at the direction of the Department of Industrial Relations. Members include:

• Division of Occupational Safety & Health
• Division of Labor Standards Enforcement
• Employment Development Department
• Contractors State Licensing Board
• California Department of Insurance
• Board of Equalization
• Bureau of Automotive Repair
• State Attorney General
• Alcoholic Beverage Control.

LETF’s primary concern is fighting the practices of businesses that operate without necessary licenses, which do not pay taxes, don’t carry insurance for worker’s compensation coverage, force employees to work in un-safe conditions, and so on – in other words, the underground businesses that function outside of legal regulations and abuse their workers. Businesses that are involved with the underground economy avoid labor and tax responsibilities and gain an unfair economic advantage that ultimately damages the economy and other honest businesses that choose to operate within the legal, regulated world. The continued operation of these underground businesses hurts law-abiding employees and employers alike. They create unfair price gouging competition for honest businesses because they pay their employees so little they can cut their prices, well below what a properly, legally operating company could.

The underground economy is a nationwide issue, not just a problem here in California. However, in the golden state alone, there is an estimated $8.4 to $28 billion a year lost through the practices of these businesses, primarily through unpaid sales tax, income and payroll taxes, and insurance costs. Not only are the practices within the underground economy unethical and unfair, they place unfair burden on honest taxpayers and fail to foster healthy competition in the marketplace.

So while the  Labor Enforcement Task Force may sound a bit sinister, they are the good guys, and they are on our side, fighting for labor rights and trying to preserve the rights of workers that were fought so hard for.

If you have questions about this blog or you believe you are working for a company like the one discussed above, please CONTACT UELG. We fight for employees and we know the law that protects you, no matter your citizenship.

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Once you are on the job and under the control of your employer, your workday starts and at days end when you leave, your workday stops. Does your workday actually start and stop when you clock in or out? Not necessarily.
This is a story that shows there is more to this issue than one might think.

An employee arrives at work in the morning, has a quick meeting with her supervisor and then she starts up her computer. The employee then logs onto the computer by typing her user ID and password and hitting “Enter”. Once that process is complete, the employee logs into the system. She then opens any programs or applications she needs to perform her job. At the end of the day, the employee is required to follow the process in reverse, logging off and closing down her computer.
Until that employee is logged in and on line, she is not able to enter her start time. At the end of the day she is required to first sign out and then completes the log off procedure.
This system does not allow an employee to be paid for the time spent at work before she is able to log on by starting up her computer as well as being required to sign out and then closing down her computer. This time adds up to more than 25 minutes each day.

There are other examples of work time that must be compensated for under the law that could be overlooked, including changing into uniforms or work and safety clothing. Also included is the after hours preparation of paperwork and the scheduling of appointments for the next day.
Over the years the amount that is owed to an employee could and does add up into the tens of thousands of dollars, including penalties and interest.
An example of the penalties that may be relevant and that would add substantially to the amount owed by the employer is as follows:
1) Unpaid Overtime in Violation of California Labor Code Section 510 and Wage Orders No. 4-2001;
2) Unpaid Overtime (Fair Labor Standards Act);
3) Knowing and Intentional Failure to Comply with Itemized Employee Wage Statement Provisions (Labor Code § 226(a));
4) Failure to Pay Minimum Wage (Labor Code §§ 1182.12, 1197);
5) Failure to Pay Minimum Wage (Fair Labor Standards Act);
6) Violation of Labor Code § 2699; and
7) Unfair Competition in Violation of Business & Professions Code, § 17200, et. seq.

All of these claims are premised upon the employee’s right to be paid for the time spent at work.

California law defines the term “hours worked” as “the time during which an employee is subject to the control of an employer, and includes all the time the employee is suffered or permitted to work, whether or not required to do so.” That does not mean that the mere fact that an employer required an employee to do something renders the time spent doing the activity at issue qualifies as “hours worked”. For example, the California Supreme Court has acknowledged that an employee’s commute is not compensable simply because “the employees would not commute to work unless the employer required their presence at the work site.” The level of the employer’s control over its employees, rather than the mere fact that the employer requires the employees’ activity, is determinative.

Generally, if you believe you may be owed any back compensation you may make a claim going back up to four years.
It is not difficult to request a free preliminary opinion that helps you understand your rights and if you should consider filing a claim for any unpaid wages.

Being informed could be worth tens of thousands of dollars in your pocket.
Labor law is complex; if you have experienced any of these scenarios or have any questions regarding your employment it is recommended that you contact a San Diego labor law attorney who can help you understand your rights and in many cases will review your situation without charge.

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California Employment attorneys are at it again- further defining the rights of employees. If you do not enjoy the luxury of working at home, you must spend time traveling to and from your place of employment. Generally, this time is not compensable as “hours worked,” because you are not considered to be under the control of your employer. But what if your employer furnishes you with a company vehicle and requires certain tasks to be completed before and after traveling from home? California Employment attorneys have brought this issue before the Court of Appeals in a class action filed by employees of the Lojack Corporation. See Rutti v. Lojack Corporation, Inc., No. 07-56599, US Court of Appeals (9th Cir.) (March 2, 2010)  The alarm technicians sought payment for time spent driving to and from job sites in company vehicles. In addition, they claimed compensation for certain “off the clock” activities such as logging assignments, mapping routes, and prioritizing jobs.

Upon reviewing the federal Employee Commuting Flexibility Act (ECFA), the Court held that travel time and any de minimus activities were not compensable. While many California employment attorneys representing employees may disagree with this decision, nevertheless at this point this will likely govern compensation in these areas.

First and foremost, the ECFA clearly states that an employer is not required to pay employees for travel time to and from the location of the place where principal job activities are performed. An employer is also not required to pay for any activities that are incidental to the use of the vehicle (i.e. getting gas, having the oil changed, or washing the vehicle). The employer may include mandatory use of a company vehicle and restrictions on the use of the vehicle as a condition of employment. Restrictions are valid as long as they do not constitute additional cognizable work. The Court held that Lojack’s requirement that company vehicles be used only from travel to and from work and that there be no passengers was merely incidental and did not constitute compensable work.

Secondly, “off the clock” activities are not compensable unless they are related to the “principal activities” of the job and not merely “de minimus.” Principal activities are generally those tasks that are performed as part of the regular work of employees in the ordinary course of business. When the tasks are actually performed is irrelevant. On the other hand, de minimus activities consist of additional work that requires a miniscule amount of time and does not take place on a regular

In light of Rutti, the important thing for employees to remember is that whether travel and off the clock activities are compensable is a very fact specific determination. If your job requires the use of a company vehicle or additional work time, you should consider the following:basis. The Court in Rutti indicated that the employees’ preliminary activities such as filling out forms appeared to be de minimus and not compensable, but that some postliminary activities such as job dispatches were vital to the business and could be compensable.

1. Reach a formal vehicle use agreement with your employer and have it put in writing.
2. Establish regular work hours. If you work more than 40 hours per week, including compensable travel time, you are entitled to overtime.
3. Be aware of any attempts by your employer to turn compensable activities into non-compensable activities.
4. Contact a knowledgeable California labor law attorney or other employment attorneys for an unbiased evaluation of your particular situation.

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As they say, knowledge is power. Unfortunately, we are not all California labor attorneys and the laws are ever changing. For this reason, I have written a simple blog on tell tale signs that your employer may be violating labor laws. This is obviously not an all encompassing article as they are numerous ways an employer can violate the law which many times are hard for even the most savvy and experienced labor attorney to find.

1. Employees are asked to work off the clock  without recording time. In many instances, employers in this scenario, will take one of a few approaches to inspire employees to work off the clock. Commonly, employers create a threat of termination whether it is direct or indirect. This is accomplished through comments or memos in the workplace which infer that “you need us, more than we need you.” Employees who are afraid to lose their jobs many times grudgingly agree to then work off the clock without the proper compensation or recording of time to prove the hours they worked. Another common approach is for employers to offer comp time. In other words, the employee is asked to work in excess of 8 hours without overtime pay, in exchange for a vacation day, or coming in late on another day. This is illegal.

2. There are disputes and or lawsuits filed by past employees. Where there is smoke there is fire. In many cases, an employer fails to pay accumulated vacation, or when an employee leaves they fail to pay all final compensation upon separation.  An employer has 3 days to pay the final wages of a resigning employee and must pay final wages immediately upon separation if the employee is terminated. If you are an employee and you notice that your employer is being sued by past employees, there is a reasonable chance you may be next should you separate from your employment. Therefore, it is prudent to document all wages, hours, and conduct of your employer along with witnesses for any perceived wrongdoing.

3. Constant turnover of employees. This is probably the greatest sign of workplace disharmony. Whether employees are being terminated or resigning due to dissatisfaction, a high percentage of turnover is indicative that the operations of the business are not going smoothly. Sometimes a hostile work environment has been created through yelling, swearing, sexual oriented jokes or postings, racist comments or the like. All of these scenarios can lead to employee turnover. When an employee finds themselves in this type of environment, again, it is wise to document all facts and witnesses and consider looking for another job.
If you are facing any of these types of conditions, it is wise to seek the advice of an experienced California labor law attorney. California labor law lawyers that have litigated these types of cases can provide the type of insight and advice needed to protect your rights.

California labor laws are complex; if you have any questions regarding your employment it is recommended that you contact a San Diego labor law attorney who can help you understand your rights and in many cases will review your situation without charge.

If you have any questions about this article or our blog, feel free to call us at:

San Diego – (619) 342-1242

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This is a true story.
Do you know of anybody who is ever busy and always ready to assist? Diane is truly busy but will never turn your request of help at any given time. Diane is brilliant, well ordered in her dealings and is the kind of the person you will always run to help when someone is in need. Diane is the kind of person you want as a friend and a coworker.
The typical example can be seen in her scenario with Harvey. Harvey and Diane are neighbors. Harvey’s business, which was awarded to him by his retired father, is growing from bad to worse and beyond his control. After a long struggle with failure, Harvey visited Diane for support. Harvey’s response to the sinking ship was to borrow more money and throw it into the business. This was like adding petrol to a burning fire. The problem persisted and Harvey is rendered into bankruptcy. There was no more money to help.
On the other hand, Diane identified the cause of the problems and styled a strategy to resume business to a profitable state. Considering that the company has existed for a long time, it was obvious that everything might get back to normal with appropriate market approach.
Diane realized that there was no appropriate financial record, and Harvey’s company needed to adopt the approved method of financial records. When she started her investigation, no one could clearly respond to money issues and company asset questions. Everything was mixed up.
Diane dealt with this project for a period of three months. All she asked in return for this extensive project was that Harvey make her modest monthly credit card payments so they remained current while she helped him out.
Immediately after the first ninety days elapsed, Harvey convinced her to continue working and also made an agreement to hold her as a partial owner of the company. Harvey agreed to equally share the amount that would be generated by the company moving forward. Diane, being truthful and innocent by her natural character, accepted without questioning it.
Several months pass as Diane continues working tremendously hard to improve the company. Harvey still gives her the modest payment, claiming that the company is not generating a good income to pay her the agreed amount as yet. However, he still sticks to his initial promises for eventually sharing the company.

When Diane approached her eighth month of work, she discovers that Harvey has been involved in financial fraud, taking large sums out of the business all the while claiming employees must accept less payment. Diane quickly informed Harvey that she is resigning from work without explanation. To Harvey, the absence of Diane is like the termination of the company. Harvey quickly responded to this matter. He again promised to give Diane what she deserves but because of the financial regulations, she was to be given overtime payment. Diane was to receive partial payment immediately.

All promises sounding so reassuring, Diane made her mind to continue working. The company steadily improved, with Diane earning only small wages for the coming six months.
One day, Harvey pulls the rug out, fires Diane and claims he doesn’t need her anymore.This happened after Diane devoted herself for one solid year, providing support to Harvey so as to save the company from going bankrupt. Even though there were many promises, nothing was properly documented.

While she blamed herself for not recording the false promises made by Harvey, she bolstered herself and called an employment attorney telling them all the details of the past year’s dealings with Harvey.
California enacted their labor laws in the early 1900s and continues to adapt them in an effort to level the playing field for employees fighting employers with far greater assets at their disposal. The California Labor Law states that nobody is allowed to perform or to be employed to work below minimum wage. It also emphasized that it is the duty of the employer to save the organization records and to calculate the wages for their respective workers.
No law can be set without impact. With this California Labor Law, there are designed punishments for breaching workers’ rights and also the right for that employee to obtain his/her deserved wages.
Thankfully Diane had evidence to prove that she has been working day and night above the normal office hours, even during the weekends. The collections of business messages in her email accounts were enough to prove this. Using this documentation she was capable of approximating the number of unpaid hours worked. When the hours worked were computed together with statutory penalties for not paying at the right time and for breaching the California Labor Law for wages, plus interest, legal operating costs used, Diane’s alleged amount totals to $ 150,000. If her claim is calculated using the payments assured she will receive accumulated amount of about $250,000.
I’m sure you can guess the fate of this story!

You need a great employment lawyer in a case like this and we are waiting to serve you. “It’s time to level the playing field.”

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