Labor Violations Committed by Brown Construction
Brown Construction, Inc., (“Brown Construction”) as a general or prime contractor, is responsible for ensuring all workers - theirs and those of their subcontractors - are paid prevailing wages. As then Department of Industrial Relations (“DIR”) Director John C. Duncan stated in 2010, “Prime contractors cannot plead ignorance when their subcontractors fail to follow California's labor law. . . . These requirements are designed to ensure that public money is being spent properly.”
Construction Wage Watch obtained information regarding the following projects where Brown Construction and their subcontractors were issued Civil Wage and Penalty Assessments (“CWPA”) for which Brown Construction was jointly and severally liable, as determined by the DIR’s Division of Labor Standards Enforcement:
- In July 2021, Brown Construction, Inc. and their subcontractor RJP Western Systems Framing, Inc. were named as defendants in a lawsuit alleging that RJP failed to pay all wages owed to workers during the construction of the Arden Gateway Apartments in Sacramento (Brown & RJP_Complaint). The case was settled in March 2022 with workers receiving $23,260.80 (Brown & RJP_Settlement) and dismissed with prejudice.i
- In January 2020, the California Labor Commissioner claimed a lien upon the real property, buildings, improvements or structures, and any leaseholds on the Sagora Senior Living project at 1200 Orchid Dr, Rocklin, CA 95765 because employees of Brown Construction, Inc.’s subcontractor S P E Drywall, Inc. were owed $150,463.15 in unpaid wages (Sagora Senior Living_Mechanics Lien).ii
- In March 2018, the DIR’s Division of Labor Standards Enforcement found Brown Construction’s subcontractor Advantage Drywall, Inc. violated the Labor Code by failing to properly classify workers during Tercero Student Housing Phase IV project at the University of California, Davis.
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- In addition to finding Advantage Drywall, Inc. responsible for paying $284,960 in penalties and $150,866.48 in back-pay, DIR determined, if Advantage Drywall, Inc. did not satisfy the assessment, the University of California – as the awarding body – and Brown Construction – as the prime contractor – would be responsible for $435,826.48 in wages and penalties. (Civil Wage and Penalty Assessment).iii This amount was reduced after additional investigation to $289,881.33. (Public Works Audit)iv
In Summary
Brown Construction and its subcontractors have faced multiple legal actions and penalties for unpaid wages on public works projects, with liabilities reaching hundreds of thousands of dollars. As the prime contractor, Brown Construction is legally responsible for ensuring prevailing wages are paid. Notable cases include a 2021 lawsuit over the Arden Gateway Apartments resulting in a $23,260.80 settlement, a 2020 lien for $150,463.15 on the Sagora Senior Living project, and a 2018 violation at UC Davis involving over $435,000 in back wages and penalties, later reduced to $289,881.33. The California DIP holds prime contractors accountable for their subcontractors' violations.
i Superior Court of California, County of Sacramento, Case # 34-2021-00303749-CU-OE-GDS, “Complaint,” Filed 07/06/2021; Superior Court of California, County of Sacramento, Case # 34-2021-00303749-CU-OE-GDS, “Case Management Statement,” Filed 03/30/2022
iiLabor Commissioner of the State of California, Mechanics Lien for Unpaid Value of Labor Performed, 01/22/2020
iiiDepartment of Industrial Relations, Civil Wage and Penalty Assessment, Case No. 40-53802/124, 03/07/2018