California Labor Commissioner’s Office Prohibits Martinez Contractor from Bidding on Public Works Contracts

San Francisco, CA  (CompNewsNetwork) - The Labor Commissioner's Office has issued an order prohibiting Contemporary Floors, Inc. (CFI) and its CEO and president, Timothy Allen Kennady, from bidding on or receiving any public works contracts for three years. The prohibition, officially known as a debarment, begins June 16, 2008.

The Martinez-based company agreed to pay more than $245,000 in wages due, liquidated damages and reduced penalties in a settlement agreement in the case. In addition to not being able to bid on or be awarded a public works project, CFI and Kennady also cannot perform work as a subcontractor on a public works project for three years.

“This was a major case of deception and fraud against CFI employees and the State of California,” said Labor Commissioner Angela Bradstreet. “We will take strong action against anyone who operates outside the law which creates an unfair business advantage over others who follow the public works laws as required.”

A Department of Industrial Relations, Division of Labor Standards Enforcement (DLSE/Labor Commissioner's Office) investigation of complaints filed by Work Preservation Fund found that on four public works projects from August 28, 2006 to January 11, 2007, CFI willfully and fraudulently failed to pay:

prevailing wages
overtime
medical and 401K contributions, and
travel time or reimbursements.
In addition, CFI was found to have repeatedly provided false payroll records which had been certified and signed under penalty of perjury.
The projects on which CFI failed to meet public works requirements included:

Santa Rosa High School new classroom construction
Veterans Home Annex I renovation in Yountville
Burlingame High School Phase 2 renovation project
San Ramon Valley Center

The DLSE adjudicates wage claims, investigates discrimination and public works complaints, and enforces state labor law and Industrial Welfare Commission wage orders. To learn more about the functions of the California Labor Commissioner, visit our Web site at www.dir.ca.gov/dlse. Employees that have work-related questions or complaints can call the California Workers' Information Hotline at 1-866-924-9757

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