LOS ANGELES, CA - An Anaheim janitorial company servicing more than 80 major retail stores across Southern California paid its 150 workers just $400 a month over the past four years, far below the minimum wage, California Attorney General Xavier Becerra charged Nov 30. In a press conference here, Becerra announced a lawsuit against the contractor, One Source Facility Solution, and its chief executive, Dilip Joshi,
calling it an “unscrupulous company.” One Source’s janitors, the lawsuit notes, clean stores for Ross Dress-for-Less, DD’s Discount, JoAnn’s Fabrics, Burlington Coat Factory and Toys R Us. The retailers are not charged in the complaint because they contract out their janitorial work to USM, a national company based in Pennsylvania, whose business model is to hire subcontractors to service its clients. The contracting arrangement is common among retailers, protecting them against wage and hour lawsuits, whether from janitors or garment workers — two workforces where government agencies often find widespread violations. However, Becerra put the major chains on notice. “I hope the retailers who employ the contractors who employ these workers are watching today,” he said.
“At the end of the day, we want to go after the employer, but we want everyone to know when someone works at your establishment you have responsibility as well.”
One Source and USM did not respond to telephone messages. According to the lawsuit, One Source also under-reported payroll taxes and provided false payroll information to its workers’ compensation insurance carrier. The suit seeks at least $1 million in back wages for workers and unspecified civil penalties.
According to the suit, One Source paid workers fixed amounts for particular services, whether scrubbing or floor waxing, failed to keep accurate records of hours worked or pay the state minimum wage which has risen from $8 to $10.50 over the four years covered by the lawsuit. “For certain jobs,” the complaint alleged, “One Source managers inform employees that the assigned work requires two people and that the employee is responsible for recruiting a partner. The partner is not placed on the payroll or paid separately, and the first employee is expected to split their wages with the recruited employee partner.”
Although the state labor commissioner has filed numerous complaints against shady contractors in recent years, it has had trouble collecting back pay and fines as companies frequently go out of business and re-incorporate under different names.
“At the end of the day, we want to go after the employer, but we want everyone to know when someone works at your establishment you have responsibility as well.”
One Source and USM did not respond to telephone messages. According to the lawsuit, One Source also under-reported payroll taxes and provided false payroll information to its workers’ compensation insurance carrier. The suit seeks at least $1 million in back wages for workers and unspecified civil penalties.
According to the suit, One Source paid workers fixed amounts for particular services, whether scrubbing or floor waxing, failed to keep accurate records of hours worked or pay the state minimum wage which has risen from $8 to $10.50 over the four years covered by the lawsuit. “For certain jobs,” the complaint alleged, “One Source managers inform employees that the assigned work requires two people and that the employee is responsible for recruiting a partner. The partner is not placed on the payroll or paid separately, and the first employee is expected to split their wages with the recruited employee partner.”
Although the state labor commissioner has filed numerous complaints against shady contractors in recent years, it has had trouble collecting back pay and fines as companies frequently go out of business and re-incorporate under different names.
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