CA Labor Commissioner Files $17.5 Million Lawsuit Against FLM Law Center
LOS ANGELES-(Business Wire)-September 15, 2009 - California Labor Commissioner Angela Bradstreet today filed lawsuit against Federal Loan Modification Law Center, LLP (“FLM Law Center”) and related entities and individuals for their failure to pay workers all wages due for hours worked. The complaint, filed in Orange County Superior Court, seeks the recovery of unpaid wages of over $1,000,000, and liquidated damages and other penalties in excess of $16.5 million dollars.
“This company has committed egregious Labor Code violations by not paying their employees as required by law,” said Bradstreet. “This lawsuit not only seeks restitution for their employees, but should also send a strong message to all employers that we won’t stand for a company that cuts corners at the expense of their workers.”
Beginning in May 2009, the Division of Labor Standards Enforcement began receiving wage claims against FLM Law Center. An investigation was opened to determine the extent of the wage violations and identify affected employees.
Information obtained shows that FLM Law Center knowingly and willfully failed to compensate their employees on regularly established paydays. As a result, the Division estimates that employees’ wages in excess of one million dollars were not paid as required.
By not paying their employees on regularly established paydays, FLM Law Center also faces penalties and liquidated damages in excess of $16.5 million for not paying at least minimum wage for all hours worked, not paying overtime, and failing to pay all wages at the time an employee terminates employment.
The lawsuit is brought against the company as well as several additional entities and individuals believed to be alter-ego and/or partners and affiliated entities with FLM Law Center. The Center opened in December 2008 and lists two business addresses, one on Irvine Center Drive in Irvine and a second in Woodland Hills.
The Division of Labor Standards Enforcement 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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