The firm’s subcontractor client was served with a Civil Wage and Penalty Assessment by the California DLSE relating to a lower-tier subcontractor’s work at the San Diego Airport. The assessment included potential liability of over $100,000, for alleged unpaid prevailing wages, substantial Labor Code penalties, liquidated damages and interest. The firm successfully asserted the innocent general contractor “safe harbor” defense under the California Labor Code and was able to convince the DLSE to not assess any penalties against the firm’s client. The firm’s efforts saved our client significant costs as well as minimized its labor history for future public work prequalifications.
Counsel: Jeffrey B. Baird and Daniel P. Scholz