Contractor Fined Nearly $12 Million for Wage Theft Violations

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The state labor commissioner’s office has fined the former owners of a now-shuttered San Gabriel Valley construction subcontractor for nearly $12 million in wage theft violations.

RDV Construction Inc., which at various times has had headquarters in Arcadia and City of Industry, hired crews to provide framing, drywall and other trade work for hotels, apartments and mixed-use buildings around the Los Angeles area.

According to the office of state Labor Secretary Julie Su, over a 21-month period, the company paid roughly 1,100 employees with checks that did not clear due to insufficient funds. After the checks bounced, the labor commissioner’s office said, RDV Construction failed to pay all wages due to the workers.

The former owners were listed in the announcement from the labor commissioner’s office as Rafael Rivas, Juan Rivas and Nicolas Del Villar, with spokesman Frank Polizzi saying Rafael Rivas was the main contact the office had been dealing with.

“Dodging labor laws and stealing wages hurts workers and creates unfair conditions for law-abiding employers,” Su said in a statement. “After a hard day’s work, the last thing a construction worker should have to face is a paycheck that bounces. Stealing earned wages from workers’ pockets is illegal in California.”

A phone number for RDV Construction Inc. was answered by a representative citing a company called RVR General Construction, which is listed as being headquartered in Fontana. This representative said RDV Construction went out of business two years ago. She said Rafael Rivas had left for the day and that he was instructed through his attorney not to comment on the allegations surrounding RDV Construction Inc.

The citations issued by the labor commissioner’s office totaled $11.9 million in unpaid wages and premiums including penalties for failing to timely pay 1,089 employees; failing to provide proper rest breaks to 1,125 employees; minimum wage violations affecting 844 employees; liquidated damages for those minimum wage violations; and failing to properly pay 1,111 workers overtime.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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