General Engineering Construction Company Excluded From Making Bids On Public Works Projects For One Year.

A general engineering construction company performed public works projects. The California Department of Industrial Relations, Division of Labor Standards Enforcement [DLSE] issued a civil wage and penalty assessment, including a disbarment period during which the company would be excluded from making bids on public work projects for one year, against the construction company based on allegations it violated prevailing wage laws in a manner that was willful and with the intent to defraud. The construction company filed a petition for writ of administrative mandate asking the trial court to set aside the one-year disbarment period. The trial court reviewed the administrative record and concluded there was no credible evidence to support a finding that the company violated prevailing wage laws with intent to defraud, and granted the petition. On appeal, DLSE argued the trial court failed to apply the correct legal standard which is the substantial evidence test, and that there was substantial evidence in the record to support the administrative finding of intent to defraud. The appellate court reversed the grant of the administrative writ by the trial court, concluding the evidence was sufficient to establish an intent to defraud, pointing out the testimony of one laborer who said he was paid $15 an hour and worked 61 hours during a particular week. The construction company’s records, however, show that laborer was paid the prevailing wage of $36.10 an hour and worked only 25 hours that week. Ogundare v. Department of Indus. Relations, Division of Labor Standards Enforcement (Cal. App. Fifth Dist.; March 18, 2013) 214 Cal.App.4th 822.