AG Accuses Janitorial Staffing Firm of Underreporting Payroll

Tuesday, December 5, 2017 | 0

California Attorney General Xavier Becerra accused Orange County janitorial contracting company One Source Facility Solution and its chief executive officer of unfair competition violations that include underreporting payroll to a workers’ compensation carrier, failure to pay minimum wage and tax evasion.

A.G. Xavier Becerra

One Source has contracts with USM Inc. to provide janitorial services to retailers including Toys R Us, Burlington Coat Factory, Ross Dress-for-Less and JoAnn’s Fabrics, according to the complaint filed Nov. 30 with the Orange County Superior Court.

One Source and its chief executive, Dilip Joshi, since 2013 have paid at least 150 workers at a set rate that doesn’t account for actual hours worked, and failed to meet the statutory minimum wage, Becerra alleges in the complaint. In some cases, workers were told that a job required two people and the employees were expected to recruit a “partner” with whom they would split the total payment.

The attorney general further claims One Source since 2013 did not report all employees or withhold and pay state payroll taxes.

Since 2015, One Source failed to provide accurate information to its workers’ compensation carrier, reducing the amount of premiums it would have paid had it reported correct payroll figures. The complaint does not identify the carrier, what One Source paid for comp coverage or what it should have paid.

Becerra is asking the court to assess a civil penalty totaling $1.5 million.