California Labor Dept. Issues $499,000 Fine for Wage Violations at Multiple Warehouses

“In California, employers are required to provide basic protections for workers that include payment of at least minimum wage, overtime, and workers’ compensation coverage,” said DIR Acting Director Christine Baker.

The California Department of Industrial Relations (DIR) recently conducted an inspection of warehouses in Riverside County where investigators uncovered numerous labor law violations. The warehouses, run by Schneider Logistics, had more than 200 employees. Some of the employees were hired by other entities, including Premier Warehousing Ventures LLC and Impact Logistics Inc.

“In California, employers are required to provide basic protections for workers that include payment of at least minimum wage, overtime, and workers’ compensation coverage,” said DIR Acting Director Christine Baker. “Our efforts ensure that employers who follow the law have a fair and competitive market to do business in and we will hold accountable those who undercut competition at the expense of their workers.”

Impact Logistics Inc. was issued a $499,000 citation for failure to provide itemized wage statements to employees. They were also issued a Notice to Discontinue labor law violations for failure to maintain time records. Premier Warehousing Ventures was issued a Notice to Discontinue reporting time violations and other violations. “Our investigation is ongoing,” said California Labor Commissioner Julie A. Su. “We will assess all wages owed to the workers and work with the employers to ensure compliance going forward.”

“Warehouse workers do some of the most backbreaking jobs in our economy,” Su said. “Their work is often hidden from public view and there is constant pressure to work faster, which can lead to abuse. In this case, workers were paid piece rate to unload containers. Piece rate workers must receive at least minimum wage and overtime for all hours worked.”

Complaints about abuses of warehouse workers, particularly in the Inland Empire area, are not uncommon, DIR noted.

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