A union representing hospitality staff has accused an occasion administration firm subcontracted by the Lengthy Seaside Conference Middle of underpaying staff and probably skirting payroll taxes.
The union, Unite Right here Native 11, filed a grievance with the California Labor Commissioner’s workplace Thursday alleging that 1Fifty1 Inc., based mostly in Costa Mesa, paid conference staff beneath the desk with money in envelopes.
ASM International, which manages the city-owned conference middle, subcontracts a number of staffing businesses whose workers make up the conference middle’s workforce, along with staff it hires immediately. ASM International contracted with 1Fifty1 to supply staff to wash public areas similar to loos, break down and arrange occasion areas and carry out groundskeeping since not less than 2023, in keeping with the grievance.
The money funds seem like in violation of labor legal guidelines that require staff be supplied with their fee an itemized assertion exhibiting wages earned, complete hours labored, tax deductions and different data, the grievance stated.
The absence of pay stubs “raises questions on whether or not 1Fifty1 deducts employment taxes from its workers’ wages, as is required by federal and state legislation,” the grievance stated.
The grievance additionally alleges 1Fifty1 engaged in wage theft by failing to pay some workers the minimal wage for Lengthy Seaside concessionaire staff, in addition to additional time wages for workers who labored seven- or eight-hour shifts seven days every week.
The union has been locked in contract negotiations with ASM International because the bargaining settlement for staff immediately employed by the corporate expired about about seven months in the past.
The union’s inquiry has already prompted motion. Stacey Escudero, a spokesperson for ASM International, stated the corporate had moved to terminate its contract with 1Fifty1 Wednesday evening.
Lengthy Seaside Metropolis Supervisor Tom Modica stated in an announcement that parts of the union’s allegations have been offered to town on Wednesday and town “instantly requested ASM examine.”
“Lengthy Seaside absolutely helps paying staff in keeping with state and federal legislation, and helps any exterior overview performed by the Division of Industrial Relations for any worker who feels that pay will not be being allotted per state legislation,” Modica stated.
“We disagree with the entire statements within the letter. None of those allegations are true. We’re in communications with the Conference Middle to guarantee they know the reality and know they don’t must take these false allegations significantly. We’re happy with our long-standing file of excellence and sustaining the best commonplace of service for our purchasers and our staff,” Vincent Capizzi, chief government officer of 1Fifty1, stated in an e-mail.
For months, Unite Right here Native 11 had raised issues to ASM International broadly about its use of contractors, which the union argues have a tendency to supply much less pay and fewer job protections and advantages, undermining workers who’re immediately employed, stated union co-president Kurt Petersen.
“It shouldn’t have taken this lengthy,” Petersen stated. “Now we want to verify these staff have a superb job on the conference middle.”
Petersen stated 1Fifty1 workers who labored on the conference middle who’ve misplaced their jobs needs to be employed by ASM International. The employees have preferential hiring rights beneath Lengthy Seaside’s concession employee retention ordinance.
The union compiled its grievance based mostly on conversations its workers had with a number of 1Fifty1 staff in latest days in addition to a video of money funds made.
The video, captured by union workers final week and reviewed by The Instances, reveals a person carrying a black-and-white vest — the uniform for 1Fifty1 staff — receiving an envelope from a girl seated at a desk in an workplace. The person opens the envelope to point out a slim bundle of money.
The speed ASM International paid 1Fifty1 for its companies was larger than different conference middle subcontractors, in keeping with paperwork ASM International offered the union in response to data requests throughout its negotiations.
1Fifty1 billed ASM International $30 an hour for 145,422 hours in 2024, a complete cost of greater than $4 million. Against this, ASM International paid subcontractors that offered cooks not more than $26.60 an hour, a place that’s usually costlier to make use of than staff performing basic cleansing work, in keeping with the union’s grievance and paperwork reviewed by The Instances.
1Fifty1 workers the union spoke to earned between $17 and $19 an hour, that means that 1Fifty1 in all probability charged ASM International and town of Lengthy Seaside a greater than 60% markup for its staff’ companies, in keeping with the grievance.
