Wage theft occurs when an employer pays an employee less then minimum wage, fails to pay overtime, takes workers’ tips, does not permit meal and rest breaks, or requires work off-the-clock.   It can also involve paying wages late, not paying required paid sick leave, not paying timely final pay, or any other failure to pay all wages owed.

On January 1, 2022, wage theft of more than $950 from one employee or $2,350 from two or more became felony grand theft under California Penal Code Section 487m.  In September 2023, the California Labor Commissioner and Los Angeles District Attorney brought their first section 487m prosecution of garment industry employers against Lawrence Lee (Lee), an owner of Parbe, Inc. dba Fabiola, and garment contractor Soon Ae Park (Park), with an additional charge for perjurious declarations.

The Labor Commissioner’s Bureau of Field Enforcement (BOFE) discovered Park was paying workers less than minimum wage in cash, without overtime, and without pay stubs, workers compensation or paid sick leave information.

Parbe contracted with Park despite explicit Labor Commissioner warnings about Park’s violations.  Park and Parbe also both lacked required garment manufacturing licenses, and Lee omitted material information from his application for such a license.

Beyond criminal charges, the BOFE imposed civil fines totaling $161,738 against these individuals and Parbe for their violations.

Labor Commissioner Lilia Garcia-Brower stated: “These employers not only abused their workers by paying them as little as $6.00 per hour but they also defrauded the system. My office will continue to work with the Los Angeles District Attorney’s office to prosecute bad-actor employers who commit wage theft and gain an unfair advantage over law-abiding employers.”

Take-Aways:

Employers need to pay employees correctly and not violate the law.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Car Wash Dusted: Employer Hit with $800,000 “Wage Theft” Citation (May 18, 2022)
• What’s New in 2022 Grand Theft Wages: Intentional Pay Deprivation Is a Possible Felony (October 15, 2021)
• Rubber Checks and Unpaid Wages Rebound on Construction Company (February 22, 2019)

Helena Kobrin
December 15, 2023