California Attorney General's Office

11/26/2024 | Press release | Distributed by Public on 11/26/2024 12:22

Attorney General Bonta Announces 31 Criminal Charges Against US Framing West and Its Employees for Wage Theft, Tax Evasion

Urges California workers to report potential labor law violations to oag.ca.gov/report

LOS ANGELES -CaliforniaAttorney General Rob Bonta today announced the filing of 31 criminal charges and two enhancements against US Framing West and two employees for multiple violations of state labor laws. The announcement follows their surrender and arraignment in Los Angeles Superior Court earlier this month. Between 2018 and 2022, US Framing West provided framing construction for multiple projects across California using crews of unlicensed subcontractors. While working these projects, US Framing West allegedly committed grand theft, payroll tax evasion, prevailing wage theft, and filed false documents with the State. In the complaint, Attorney General Bonta alleges that US Framing West failed to pay more than $2.5 million in state payroll taxes during this period and underpaid its workers by approximately $40,000 at a public works project in Cathedral City.

"California has some of the strongest worker protections in the country, but there are still too many who are willing to skirt the law to make an extra buck," said Attorney General Bonta. "My office will not stand by when businesses - or the individuals who run them - steal from workers and defraud the state. I want to thank our union partners for alerting us to this case and for fighting every day to ensure good jobs, fair wages, and safe conditions for California workers. I also want to express my gratitude to the state agencies who assisted with our investigation. California workers will always have a partner and an advocate in my office - so if you have information about potential labor law violations, please consider reporting it at oag.ca.gov/report."

US Framing West is a construction company that specializes in framing contracting. DOJ's investigation revealed that US Framing West had secured a number of high-paying framing jobs on large construction projects in California and then subcontracted out the physical labor to unlicensed subcontractors. Starting in 2018 and through to 2022, US Framing West is alleged to have hired numerous unlicensed contractors for projects throughout the State and failed to file and submit taxes to the California Employment Development Department (EDD) for these employees.

DOJ's investigation into US Framing West began after the Northern California Carpenters Regional Council alerted DOJ to potential wage theft violations occurring at an Oakland construction project. DOJ, with support from the California Department of Insurance, California Department of Industrial Relations (DIR), and EDD, subsequently conducted a joint investigation into US Framing West for allegations relating to violations of state labor laws and tax evasion on construction projects spanning Alameda, Los Angeles, Contra Costa, Orange, Riverside, San Diego, San Francisco, and Santa Clara counties.

Additionally, DOJ alleges that US Framing West engaged in prevailing wage theft and filing false documents with DIR in connection with a public works project in Cathedral City. Public works projects - projects that use more than $1,000 of public funds - require all workers on the project to be paid the "prevailing wage."

Attorney General Bonta is dedicated to upholding workers' rights and combating unfair labor practices. In 2024, Attorney General Bonta defended wages and overtime owed in the West Coast Drywall lawsuit and secured a settlement with Amalfi Stone & Masonry Company, Inc., resolving allegations of unfair competition and payroll tax, and labor violations. In 2023, Attorney General Bonta launched a historic investigation into gender discrimination in the National Football League; joined 17 attorneys general in supporting the Federal Trade Commission's proposed rule limiting non-compete agreements; launched a legal fight for in-home-healthcare workers; and fought for the rights of transportation workers and immigrant children.

A copy of the complaint can be found here.

It is important to note that a criminal complaint contains charges that must be proven in a court of law. Every defendant is presumed innocent until proven guilty.