Flooring company shorted workers $1 million in overtime pay, California officials say

A flooring company owner accused of shorting workers $1 million in overtime wages will spend four months in jail and pay a fine, California officials reported.

The owner of All Bay Floor in San Jose also pleaded guilty to lowballing his payroll to curb his worker’s compensation premiums, the Santa Clara County District Attorney’s Office said in an Aug. 3 news release.

A judge sentenced him to four months in jail and a $580,000 fine, along with 200 hours of community service, prosecutors said.

“Whatever you think you might be saving in the short term will cost you a lot more than money in the long term,” District Attorney Jeff Rosen said. “Fraud doesn’t pay.”

The District Attorney’s Office began investigating the company after an insurance audit revealed the number of employees didn’t match up with what was listed on its payroll, prosecutors said.

Investigators also found the owner failed to pay 18 employees time-and-a-half for overtime, as required, costing them about $1 million, prosecutors said.

One employee alone was owed $60,000 in overtime pay, according to the release.

Other employees also may be owed overtime, bringing the possible total owed to $1.7 million, prosecutors said.

The district attorney’s office suggests anyone who believes the firm may owe them overtime to file a wage claim on the Labor Commissioner’s Office website.

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