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Contractor charged with wage theft

3.6K views 19 replies 16 participants last post by  Lee Decorating Corp.  
#1 ·
SAN FRANCISCO—A painting contractor who had a number of contracts to work on San Francisco city and school projects is facing charges that she cheated her employees out of more than $600,000 in wages.
Frances Ann Doherty was charged Friday with 57 counts including wage theft, workers' compensation insurance premium fraud and other charges, said San Francisco District Attorney George Gascon.
Doherty, who operated Doherty Painting & Construction, failed to pay San Francisco's prevailing wage to workers for projects she had with San Francisco, the San Francisco Unified School District and other public agencies, according to prosecutors.
Contractors awarded work on public projects are required to pay their workers the prevailing wage and provide verification that the appropriate wages were paid.
More here...
 
#7 ·
Many years ago we had a local outfit (they were the BM dealer (among other lines) at the time) that I did a lot of business with. Got to where they had about five stores. Turned out that's what the owner had been doing too. He lost everything and almost went to prison for it. Too bad, he was a really nice guy but he made some really bad business decisions. Don't mess with your Uncle.
 
#10 ·
Just another reason to stay off the gov't radar. I know that is a short sighted viewpoint because there can be a ton of gross billing in that type of work but there are too many hoops to jump through for my taste. The last gov't job I bid on was given to a contractor charging 1.5 cents per s/f of concrete. Figuring we can do 3000 s.f per hour (and that's fast) it works out to $45/hr. Two men, $30,000 in reclaim equipment, $10,000 in machinery PLUS prevailing union wage in Philadelphia? I couldn't even begin to comprehend how to break even.

This person was stupid though. She rolled the dice, in of all places CA. The gov't worshiping mecca of the planet. She rolled craps.
 
#12 ·
This story represents the state of paint contracting in the San Francisco Bay Area. How a legitimate contractor can compete here with the exploitation of readily available undocumented labor is beyond me.

It's unfortunate that competing contractors who may of provided better quality for the tax, and rate payers were instead cheated out of the job by this low ball periah.

I would say Doherty is the ultimate example of a "hack"
 
#20 ·