Skip navigation
Annenberg School of Communication and Journalism University of Southern California
Southern California

City Contractors Sued for Wage Theft

A lawsuit has been filed against a city contractor in Los Angeles.

City Attorney Mike Feuer announced the filing of a lawsuit against a city contractor and five subcontractors for routinely failing to pay employees their proper wages. The lawsuit was filed against Mackone Development Inc., Pak's Cabinet, Lectrfy, Southern California Steel, KCC General Construction, King Wire Partitions Inc. and Nader Construction. The contractors were hired to work on the $9.6 million South Los Angeles Animal Care Center in 2010; the 68,000 square foot shelter was completed in 2013.

Feuer said approximately 50 workers were underpaid, amounting to a total of $250,000 in lost wages. The lawsuit states that Pak's Cabinet paid workers only $8 an hour, rather than the agreed upon wage of $49 an hour. The company was accused of turning in false records to the city. KCC General Construction allegedly paid their workers even less -- $5 an hour, rather than the wage of $49 an hour. Southern California Steel was accused of failing to pay their share of worker's compensation insurance and unemployment insurance. King Wire Partitions and Nader Construction were both accused of improperly classifying their employees to avoid paying higher wages and failing to pay fringe benefits and training fees.

"Stealing wages from hardworking men and women is reprehensible and it must end," Feuer said. "No one -- especially city contractors paid with taxpayer dollars -- should fail to pay workers what they are rightly owed." 

The lawsuit calls for the contractors to pay the workers what they are allegedly owed, as well as a $2,500 penalty fee for each individual violation. Feuer and other city attorneys also hope that the companies will be barred from city contracts. 

Mackone Development's attorney, Mark Feldman, issued a press release Thursday afternoon that states the lawsuit is false and lacks support. The company also stated that the city agreed in writing that Mackone Development was not responsible for the underpaid workers. 

"Mackone Development, Inc. spends considerable time and money to make sure that its workers are paid the correct wages on public works and private construction projects. Mackone also monitors the subcontractors who submitted bids on the project to make sure that proper wages are paid to their workers," the press release said. 

The city has not yet provided Mackone Development with a copy of the lawsuit. 

Feuer has established a hot line, 213-978-7141, for workers involved in the case to call. 

Leave a comment

We've Moved!

By Sam Bergum
01/21/16 | 11:09 a.m. PST

Visit us at!

USC Basketball Knocks Off Rival UCLA 89- 75

By Scott Cook
01/14/16 | 12:05 a.m. PST

USC defeats UCLA with stellar play from their Freshmen. 

Holiday Bowl - USC vs Wisconsin Post-Game Press Conference

Su'a Cravens: "It's the players that need to step up"

Darreus Rogers: "It comes down to the players"

Trojans Fall to Wisconsin in the Holiday Bowl 23-21

We detected that you might be on a mobile device such as an iPad or iPhone. Sorry, at this time the video box is only visible on desktop computers.