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San Diego Hotel Under Investigation For Using Alleged Wage Theft Subcontractor

Photo Credit: John Gibbins / San Diego Union-Tribune


Brea,CA The San Diego Tribune is reporting that a prestigious hotel is currently under investigation due to the alleged illegal practices of their temp staffing agency. Read here.

As I've written here, hiring companies are jointly responsible for the labor law violations of their subcontractors. This new joint responsibility puts increasing pressure on choosing the right contractor.

The Tribune reports that the wage theft allegations stem from the staffing agency paying its employees in cash. Cash only payment practices are illegal. This practice violates numerous federal and state labor and employment laws.

It is of upmost importance that the hiring company does its due diligence in background checks on its sub contractors. Putting in place audit controls to assure compliance is essential.

Another simple measure that all hiring properties should be doing is to assure that your cleaning contractors (California only) are registered with the State of California janitorial registry. As I've written about here, all commercial janitorial and cleaning services working in California are required to register as required by the Property Workers' Protection Act. If your cleaning contractor is not registered both the property and contractor are subject to assessed daily fines for non-compliance.

A check of the registry indicates that Hotel Cleaning, the company sighted in the Tribune article is not registered. Anyone wanting to check if their janitorial contractor is registered may do so here:

The law as stated in Senate Bill No. 588 holds the hiring entity as jointly responsible for any wage theft activities of their outsourced cleaning contractor.

Contract Services Group (CSG) is in compliance with all federal, state, and local labor laws. At CSG, all of our employees are issued paychecks, showing all hours worked, withholding, and accrued sick pay.

If your hotel, facility, or property is reviewing its cleaning contractor or labor provider needs, CSG would welcome the opportunity to provide you with a no cost proposal. Please feel free to contact me.


Justin Flores Sales & Marketing Coordinator Contract Services Group, Inc.

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