"We're appealing (the city's fine) completely because our employees were paid,"
"It's a very large number,"
"If they actually recover it, that's a win."
REO Mechanical, a Rio Linda-based HVAC subcontractor on the seven-story Mariposa Place affordable housing project in San Jose, faces an assessed city fine of $717,592 for alleged violations of state labor code. San Jose Department of Public Works inspectors cited late or underpayment of wages, failure to contribute to workers’ 401(k) plans, worker misclassification, and unpaid travel and subsistence. The notice lists more than $225,000 in restitution owed to workers plus a $42,250 penalty for late payroll submissions; a penalty multiplier produced the total assessment. The company denies the allegations and has appealed as investigators continue gathering information.
Read at San Jose Spotlight
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