Federal Fines Loom for Contractor Over Alleged Employee Timekeeping Discrepancies

Abstract

The May 27 order, issued by US District Court Chief Judge G. Murray Snow against Valley Wide Plastering Inc., its owners and vice president, marks the latest chapter in a long-running effort by the U.S. Dept. According to court documents, separate department investigations, conducted in 2012 and 2017 into allegations of payroll discrepancies at Valley Wide, found that owners Jesse Guerrero and Rose Guerrero, and vice president J.R. Guerrero, intentionally allowed inaccuracies in the recording of employees work hours. Examples included filling in false hours or manually altering the number of hours employees recorded without adequate justification. A February 25, 2021, preliminary injunction, also issued by Judge Snow, ordered Valley Wide to implement a reliable timekeeping system and maintain accurate and complete records of each employee's gross wages, deductions and net pay. Timesheet examinations by federal investigators revealed numerous discrepancies, such as wide variations in individual employees' hourly rates and inaccurate employee names and signatures that sometimes led to some employees not getting paid. Of Labor's request to modify the original injunction with civil contempt sanctions against Valley Wide and the Guerreros. According to Valley Wide's website, the company was incorporated in May 1980, having previously done business as Guerrero Stucco.